First Advantage Co. (NYSE:FA) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Analysts rate First Advantage a “Moderate Buy”: Of six covering firms, three recommend buying, one strongly recommends buying, and two rate the stock as a hold. The average 12-month price target is $23.33, with targets ranging from $22 to $30.
• Recent results exceeded expectations: First Advantage reported quarterly EPS of $0.35 versus the $0.29 consensus estimate, while revenue increased 14.9% year over year. Management’s fiscal 2026 EPS guidance is $1.23–$1.29.
• Institutional ownership remains high: Institutional investors and hedge funds own 94.91% of the company, with several funds recently increasing their positions.

First Advantage Co. (NYSE:FA - Get Free Report) has received a consensus recommendation of "Moderate Buy" from the six research firms that are currently covering the firm, MarketBeat.com reports. Two analysts have rated the stock with a hold rating, three have assigned a buy rating and one has issued a strong buy rating on the company. The average 1-year price objective among brokerages that have issued a report on the stock in the last year is $23.3333.

Several research firms have weighed in on FA. Zacks Research raised First Advantage from a "hold" rating to a "strong-buy" rating in a research report on Monday, August 17th. Royal Bank Of Canada increased their price objective on First Advantage from $21.00 to $24.00 and gave the company a "sector perform" rating in a report 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 target price for the company in a research note on Thursday, August 6th. Citigroup upped their price target on shares of First Advantage from $18.00 to $22.00 and gave the stock a "neutral" rating in a research report on Monday, August 17th. Finally, Barclays increased their price target on shares of First Advantage from $20.00 to $30.00 and gave the company an "overweight" rating in a research note on Friday, August 7th.

First Advantage Stock Performance

Shares of FA stock opened at $20.49 on Tuesday. First Advantage has a 12 month low of $8.82 and a 12 month high of $25.15. The company's fifty day simple moving average is $21.09 and its 200-day simple moving average is $16.72. The firm has a market cap of $3.52 billion, a PE ratio of 683.00 and a beta of 1.15. The company has a quick ratio of 3.85, a current ratio of 3.85 and a debt-to-equity ratio of 0.61.

First Advantage (NYSE:FA - Get Free Report) last released its earnings results on Thursday, August 6th. The company reported $0.35 earnings per share for the quarter, beating analysts' consensus estimates of $0.29 by $0.06. First Advantage had a net margin of 0.65% and a return on equity of 13.16%. The company's revenue was up 14.9% compared to the same quarter last year. During the same period in the prior year, the company earned $0.27 earnings per share. First Advantage has set its FY 2026 guidance at 1.23-1.290 EPS. Equities research analysts expect that First Advantage will post 0.74 EPS for the current fiscal year.

Institutional Trading of First Advantage

Hedge funds have recently made changes to their positions in the business. Parkside Financial Bank & Trust grew its stake in shares of First Advantage by 9.8% during the second quarter. Parkside Financial Bank & Trust now owns 8,096 shares of the company's stock worth $146,000 after buying an additional 724 shares during the last quarter. Versant Capital Management Inc boosted its holdings in shares of 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 acquiring an additional 783 shares in the last quarter. Glenmede Trust Co. NA grew its position in First Advantage by 6.6% during the 1st quarter. Glenmede Trust Co. NA now owns 21,966 shares of the company's stock worth $258,000 after acquiring an additional 1,359 shares during the last quarter. Clearstead Advisors LLC grew its position in First Advantage by 192.8% during the 4th quarter. Clearstead Advisors LLC now owns 4,333 shares of the company's stock worth $63,000 after acquiring an additional 2,853 shares during the last quarter. Finally, KBC Group NV acquired a new position in First Advantage in the 1st quarter worth about $35,000. 94.91% of the stock is owned by institutional investors and hedge funds.

About First Advantage

First Advantage Corporation is a global provider of employment background screening and workforce-management solutions. The company helps employers make informed hiring and onboarding decisions through services such as criminal-record searches, employment and education verification, identity verification, drug and health screening, motor vehicle record checks, and immigration and employment eligibility services.

Its technology platform is designed to support the hiring lifecycle, from recruiting and screening to onboarding, workforce monitoring, and offboarding.

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