Diamond Hill Capital Management Inc. Reduces Stock Position in First Advantage Co. $FA

Key Points

• Diamond Hill Capital Management reduced its First Advantage stake by 5.6% in the fourth quarter, selling 83,745 shares and ending with 1.43 million shares valued at about $20.7 million.
• Several other institutional investors also adjusted positions, and 94.91% of First Advantage shares are owned by hedge funds and other institutions. Insider ownership is relatively small at 4.40%.
• Analysts have turned more constructive on FA, with multiple firms raising price targets; the consensus rating is Hold and the average price target is $18.50. The company also recently beat earnings estimates, reporting $0.26 EPS versus $0.21 expected.

Diamond Hill Capital Management Inc. cut its stake in First Advantage Co. (NYSE:FA - Free Report) by 5.6% in the 4th quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 1,425,166 shares of the company's stock after selling 83,745 shares during the period. Diamond Hill Capital Management Inc. owned 0.82% of First Advantage worth $20,708,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also bought and sold shares of the stock. Olstein Capital Management L.P. lifted its holdings in First Advantage by 4.2% in the fourth quarter. Olstein Capital Management L.P. now owns 74,000 shares of the company's stock worth $1,075,000 after buying an additional 3,000 shares during the period. Van Berkom & Associates Inc. lifted its holdings in shares of First Advantage by 12.9% during the fourth quarter. Van Berkom & Associates Inc. now owns 96,263 shares of the company's stock valued at $1,399,000 after purchasing an additional 11,030 shares during the last quarter. Inscription Capital LLC purchased a new position in shares of First Advantage during the fourth quarter valued at approximately $168,000. SG Americas Securities LLC lifted its holdings in shares of First Advantage by 8,338.6% during the fourth quarter. SG Americas Securities LLC now owns 777,275 shares of the company's stock valued at $11,294,000 after purchasing an additional 768,064 shares during the last quarter. Finally, JPMorgan Chase & Co. lifted its holdings in shares of First Advantage by 8.4% during the third quarter. JPMorgan Chase & Co. now owns 3,315,150 shares of the company's stock valued at $51,020,000 after purchasing an additional 255,641 shares during the last quarter. 94.91% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on FA shares. JPMorgan Chase & Co. lifted their target price on shares of First Advantage from $15.00 to $18.00 and gave the company an "overweight" rating in a report on Friday, May 8th. Stifel Nicolaus set a $18.00 price target on shares of First Advantage in a research report on Friday, May 8th. Barclays lifted their target price on shares of First Advantage from $15.00 to $20.00 and gave the stock an "overweight" rating in a research report on Friday, May 8th. Finally, Citigroup lifted their target price on shares of First Advantage from $15.00 to $18.00 and gave the stock a "neutral" rating in a research report on Monday, May 11th. Two analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $18.50.

Insider Activity at First Advantage

In other First Advantage news, President Joelle M. Smith sold 23,334 shares of the stock in a transaction dated Thursday, May 7th. The shares were sold at an average price of $15.00, for a total transaction of $350,010.00. Following the completion of the transaction, the president owned 19,393 shares of the company's stock, valued at $290,895. This represents a 54.61% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 4.40% of the stock is owned by company insiders.

First Advantage Trading Down 1.6%

Shares of FA stock opened at $15.04 on Friday. The company has a market cap of $2.58 billion, a price-to-earnings ratio of 501.33 and a beta of 1.13. The company has a debt-to-equity ratio of 0.61, a current ratio of 3.85 and a quick ratio of 3.85. The firm has a fifty day moving average price of $12.50 and a 200-day moving average price of $12.99. First Advantage Co. has a 1 year low of $8.82 and a 1 year high of $19.01.

First Advantage (NYSE:FA - Get Free Report) last issued its earnings results on Thursday, May 7th. The company reported $0.26 earnings per share for the quarter, topping the consensus estimate of $0.21 by $0.05. First Advantage had a net margin of 0.65% and a return on equity of 13.16%. First Advantage's revenue was up 8.6% on a year-over-year basis. During the same period in the prior year, the company posted $0.17 earnings per share. First Advantage has set its FY 2026 guidance at 1.150-1.250 EPS. As a group, equities analysts predict that First Advantage Co. will post 0.74 earnings per share for the current year.

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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