BlackRock Inc. Makes New $217.75 Million Investment in First Advantage Co. $FA

Key Points

• BlackRock acquired 12.06 million shares of First Advantage during the second quarter, worth approximately $217.75 million and representing a 7.03% stake. Institutional investors and hedge funds collectively own 94.91% of the company.
• First Advantage exceeded quarterly earnings expectations, reporting $0.35 EPS versus the $0.29 consensus, while revenue increased 14.9% year over year. The company issued fiscal 2026 EPS guidance of $1.23 to $1.29.
• Analyst sentiment is moderately bullish: the stock has a consensus “Moderate Buy” rating and an average price target of $23.33, with recent targets ranging from $18 to $28.

BlackRock Inc. acquired a new stake in First Advantage Co. (NYSE:FA - Free Report) during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund acquired 12,063,590 shares of the company's stock, valued at approximately $217,748,000. BlackRock Inc. owned 7.03% of First Advantage at the end of the most recent quarter.

A number of other large investors also recently bought and sold shares of FA. Deutsche Bank AG purchased a new position in First Advantage during the 2nd quarter valued at about $1,632,000. Bank of New York Mellon Corp purchased a new stake in First Advantage during the second quarter worth about $7,501,000. State of Wyoming purchased a new stake in First Advantage during the second quarter worth about $81,000. Handelsbanken Fonder AB lifted its position in shares of First Advantage by 51.9% during the second quarter. Handelsbanken Fonder AB now owns 24,300 shares of the company's stock worth $439,000 after purchasing an additional 8,300 shares in the last quarter. Finally, Versant Capital Management Inc lifted its position in shares of First Advantage by 47.1% during the second quarter. Versant Capital Management Inc now owns 2,445 shares of the company's stock worth $44,000 after purchasing an additional 783 shares in the last quarter. Institutional investors and hedge funds own 94.91% of the company's stock.

First Advantage Price Performance

Shares of FA opened at $20.93 on Friday. 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 Co. has a 1-year low of $8.82 and a 1-year high of $25.15. The stock has a market cap of $3.59 billion, a PE ratio of 697.67 and a beta of 1.16. The firm has a fifty day moving average price of $20.27 and a 200 day moving average price of $15.45.

First Advantage (NYSE:FA - Get Free Report) last issued its quarterly earnings data 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 last year, the business earned $0.27 EPS. 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. As a group, sell-side analysts anticipate that First Advantage Co. will post 0.74 EPS for the current year.

Analyst Ratings Changes

Several analysts have recently issued reports on the company. 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 research note on Friday, August 7th. Needham & Company LLC upgraded First Advantage from a "hold" rating to a "buy" rating and set a $28.00 price objective for the company in a research note on Thursday, August 6th. Stifel Nicolaus set a $18.00 price objective on First Advantage in a research report on Friday, May 8th. JPMorgan Chase & Co. upped their target price on shares of First Advantage from $15.00 to $18.00 and gave the stock an "overweight" rating in a research note on Friday, May 8th. 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 report on Monday, August 17th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $23.33.

Insider Transactions at First Advantage

In other First Advantage news, Director James Lindsey Clark sold 4,921 shares of First Advantage stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $15.69, for a total transaction of $77,210.49. Following the transaction, the director owned 56,844 shares of the company's stock, valued at $891,882.36. The trade was a 7.97% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 4.40% of the stock is owned by corporate insiders.

About First Advantage

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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