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

Key Points

• Analysts have a “Moderate Buy” consensus on First Advantage, with three buy ratings, one strong-buy rating and two holds. The average 12-month price target is $23.33.
• First Advantage shares opened at $20.93, up 2%, while the company recently reported quarterly EPS of $0.35, beating estimates of $0.29, and revenue growth of 14.9% year over year.
• Institutional investors own 94.91% of the stock. Recent activity was mostly positive, although a director sold 4,921 shares under a pre-arranged Rule 10b5-1 trading plan.

First Advantage Co. (NYSE:FA - Get Free Report) has received an average recommendation of "Moderate Buy" from the six ratings firms that are presently covering the company, MarketBeat.com reports. Two research 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 target among brokers that have updated their coverage on the stock in the last year is $23.3333.

FA has been the topic of several recent research reports. Citigroup upped their price target on First Advantage from $18.00 to $22.00 and gave the stock a "neutral" rating in a research note on Monday, August 17th. Barclays boosted their target price on shares of First Advantage from $20.00 to $30.00 and gave the company an "overweight" rating in a report on Friday, August 7th. Stifel Nicolaus set a $18.00 target price on shares of First Advantage in a research report on Friday, May 8th. Zacks Research upgraded shares of First Advantage from a "hold" rating to a "strong-buy" rating in a research note on Monday, August 17th. Finally, Royal Bank Of Canada lifted their price target on shares of First Advantage from $21.00 to $24.00 and gave the company a "sector perform" rating in a research report on Friday, August 7th.

First Advantage Stock Up 2.0%

Shares of First Advantage stock opened at $20.93 on Friday. The company has a current ratio of 3.85, a quick ratio of 3.85 and a debt-to-equity ratio of 0.61. First Advantage has a 12-month low of $8.82 and a 12-month high of $25.15. The company has a market cap of $3.59 billion, a P/E ratio of 697.67 and a beta of 1.16. The company's fifty day simple moving average is $20.27 and its two-hundred day simple moving average is $15.45.

First Advantage (NYSE:FA - Get Free Report) last announced 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%. First Advantage's revenue was up 14.9% on a year-over-year basis. During the same quarter last year, the business posted $0.27 EPS. First Advantage has set its FY 2026 guidance at 1.23-1.290 EPS. Research analysts anticipate that First Advantage will post 0.74 EPS for the current year.

Insider Activity

In other news, Director James Lindsey Clark sold 4,921 shares of the business's stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $15.69, for a total value of $77,210.49. Following the sale, the director directly owned 56,844 shares of the company's stock, valued at $891,882.36. The trade was a 7.97% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 4.40% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the stock. Versant Capital Management Inc boosted its holdings in First Advantage by 47.1% in the second quarter. Versant Capital Management Inc now owns 2,445 shares of the company's stock worth $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 valued at $258,000 after purchasing an additional 1,359 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its position in First Advantage by 4.3% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 35,567 shares of the company's stock valued at $501,000 after purchasing an additional 1,471 shares during the last quarter. Swiss National Bank increased its stake in First Advantage by 1.6% during the 3rd quarter. Swiss National Bank now owns 151,544 shares of the company's stock valued at $2,332,000 after purchasing an additional 2,400 shares in the last quarter. Finally, The Manufacturers Life Insurance Company raised its holdings in First Advantage by 5.9% in the second quarter. The Manufacturers Life Insurance Company now owns 44,279 shares of the company's stock worth $735,000 after buying an additional 2,463 shares during the last quarter. Hedge funds and other institutional investors own 94.91% of the company's stock.

First Advantage Company Profile

First Advantage is a global provider of background screening, identity verification and workforce risk management solutions. The company delivers a comprehensive suite of services that help employers verify candidate credentials, manage regulatory compliance and mitigate risk throughout the employee lifecycle. Its platform is built to integrate with leading human capital management and applicant tracking systems, enabling a seamless and scalable experience for organizations of all sizes.

The company's core offerings include pre-employment and continuous background screening, digital identity verification, drug and health testing, and ongoing employee monitoring.

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