Zacks Research Downgrades First Advantage (NYSE:FA) to Hold

Key Points

• Zacks Research downgraded First Advantage from “strong buy” to “hold.” Despite the downgrade, the broader analyst consensus remains “Moderate Buy,” with three Buy and three Hold ratings and an average price target of $23.33.
• First Advantage reported quarterly EPS of $0.35, beating consensus estimates of $0.29, while revenue increased 14.9% year over year. The company provided fiscal 2026 EPS guidance of $1.23 to $1.29.
• The stock opened at $18.37 and has traded between $8.82 and $25.15 over the past year. Institutional investors own approximately 94.91% of the company’s shares.

First Advantage (NYSE:FA - Get Free Report) was downgraded by stock analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a note issued to investors on Tuesday, Zacks reports.

Several other equities analysts also recently commented on FA. Royal Bank Of Canada increased their price target on First Advantage from $21.00 to $24.00 and gave the company a "sector perform" rating in a report on Friday, August 7th. Barclays boosted their price objective on shares of First Advantage from $20.00 to $30.00 and gave the stock an "overweight" rating in a research note on Friday, August 7th. Needham & Company LLC raised shares of First Advantage from a "hold" rating to a "buy" rating and set a $28.00 price objective for the company in a report on Thursday, August 6th. Finally, Citigroup raised their target price on shares of First Advantage from $18.00 to $22.00 and gave the company a "neutral" rating in a research note on Monday, August 17th. Three research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $23.33.

First Advantage Price Performance

Shares of NYSE:FA opened at $18.37 on Tuesday. First Advantage has a fifty-two week low of $8.82 and a fifty-two week high of $25.15. The business has a 50-day moving average of $20.57 and a two-hundred day moving average of $17.36. The stock has a market capitalization of $3.16 billion, a P/E ratio of 612.33 and a beta of 1.12. The company has a debt-to-equity ratio of 0.61, a current ratio of 3.85 and a quick ratio of 3.85.

First Advantage (NYSE:FA - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The company reported $0.35 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.29 by $0.06. First Advantage had a return on equity of 13.16% and a net margin of 0.65%.During the same quarter in the prior year, the firm posted $0.27 earnings per share. The business's quarterly revenue was up 14.9% on a year-over-year basis. First Advantage has set its FY 2026 guidance at 1.23-1.290 EPS. On average, equities research analysts predict that First Advantage will post 0.74 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the business. Versant Capital Management Inc boosted its position in shares of First Advantage by 47.1% in the second quarter. Versant Capital Management Inc now owns 2,445 shares of the company's stock valued at $44,000 after acquiring an additional 783 shares during the period. KBC Group NV bought a new position in First Advantage during the first quarter worth $35,000. Fifth Third Bancorp acquired a new position in First Advantage during the 1st quarter valued at $45,000. State of Wyoming acquired a new position in First Advantage during the 2nd quarter valued at $81,000. Finally, Parkside Financial Bank & Trust boosted its holdings in First Advantage by 9.8% in the 2nd quarter. Parkside Financial Bank & Trust now owns 8,096 shares of the company's stock valued at $146,000 after purchasing an additional 724 shares during the period. 94.91% of the stock is owned by institutional investors.

About First Advantage

First Advantage Corporation NYSE: FA is a global provider of employment background screening and workforce-management solutions. The company helps employers make informed hiring and onboarding decisions through services that may include criminal-record searches, identity verification, employment and education verification, professional-license checks, drug and health screening, and ongoing workforce monitoring.

Its technology platform is designed to support the hiring and compliance processes of organizations of varying sizes and across multiple industries.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.