First Advantage (NYSE:FA) Given New $25.00 Price Target at Citigroup

Key Points

• Citigroup raised its First Advantage price target to $25 from $22 while keeping a neutral rating, implying 16.36% upside from the cited share price.
• Analyst opinion is mixed but averages to Hold: MarketBeat lists a $25 consensus target, with three Buy and four Hold ratings.
• First Advantage beat quarterly earnings estimates, reporting $0.38 per share versus $0.34 expected, while revenue grew 13.8% year over year. Shares fell 8.7% on Tuesday to $21.48.

First Advantage (NYSE:FA - Get Free Report) had its target price increased by analysts at Citigroup from $22.00 to $25.00 in a report released on Tuesday, Benzinga reports. The brokerage currently has a "neutral" rating on the stock. Citigroup's target price indicates a potential upside of 16.36% from the stock's current price.

A number of other research firms also recently weighed in on FA. Royal Bank Of Canada upped their target price on shares of First Advantage from $21.00 to $24.00 and gave the stock a "sector perform" rating in a research report on Friday, August 7th. Zacks Research lowered shares of First Advantage from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, October 6th. Barclays lifted their price target on shares of First Advantage from $30.00 to $34.00 and gave the company an "overweight" rating in a research report on Friday. Needham & Company LLC boosted their price objective on shares of First Advantage from $28.00 to $30.00 and gave the stock a "buy" rating in a research note on Friday. Finally, Jefferies Financial Group restated a "hold" rating and issued a $26.00 price objective on shares of First Advantage in a report on Friday. Three research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, First Advantage presently has an average rating of "Hold" and a consensus target price of $25.00.

First Advantage Stock Down 8.7%

Shares of FA traded down $2.04 on Tuesday, reaching $21.48. The stock had a trading volume of 6,951,867 shares, compared to its average volume of 1,561,002. The company has a debt-to-equity ratio of 0.61, a quick ratio of 3.85 and a current ratio of 3.85. First Advantage has a 12-month low of $8.82 and a 12-month high of $25.15. The firm has a market capitalization of $3.69 billion, a price-to-earnings ratio of 716.17 and a beta of 1.12. The company has a 50-day simple moving average of $20.34 and a 200-day simple moving average of $16.59.

First Advantage (NYSE:FA - Get Free Report) last issued its quarterly earnings results on Thursday, November 5th. The company reported $0.38 earnings per share for the quarter, topping the consensus estimate of $0.34 by $0.04. First Advantage had a return on equity of 13.16% and a net margin of 0.65%. The business's revenue was up 13.8% compared to the same quarter last year. During the same period in the previous year, the business earned $0.30 EPS. Sell-side analysts predict that First Advantage will post 0.74 EPS for the current year.

Institutional Investors Weigh In On First Advantage

Several hedge funds have recently added to or reduced their stakes in FA. KBC Group NV purchased a new position in First Advantage in the 1st quarter worth approximately $35,000. Versant Capital Management Inc boosted its stake in First Advantage by 47.1% during the 2nd quarter. Versant Capital Management Inc now owns 2,445 shares of the company's stock valued at $44,000 after purchasing an additional 783 shares during the last quarter. Fifth Third Bancorp purchased a new stake in First Advantage during the 1st quarter valued at $45,000. Sterling Capital Management LLC increased its holdings in shares of First Advantage by 323.6% in the 3rd quarter. Sterling Capital Management LLC now owns 2,694 shares of the company's stock worth $48,000 after purchasing an additional 2,058 shares in the last quarter. Finally, State of Wyoming bought a new stake in shares of First Advantage in the 2nd quarter worth $81,000. 94.91% of the stock is owned by institutional investors.

About First Advantage

First Advantage provides technology-enabled background screening and verification services to employers and other organizations. Its offerings include criminal-record searches, employment and education verification, identity checks, drug and health screening, and related compliance services used in hiring and workforce management. The company serves customers across North America and international markets, including businesses that need screening processes across multiple locations. Its services are designed to help organizations assess candidates and manage workplace-related risks.

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