First Advantage Co. $FA Shares Sold by Emerald Advisers LLC

Key Points

• Emerald Advisers LLC reduced its stake in First Advantage by 12.4% in the first quarter, selling 162,068 shares and ending with 1,147,865 shares valued at about $13.5 million.
• Wall Street sentiment is mixed but cautious: analysts have an average rating of “Hold” with a consensus price target of $18.50, though several firms recently raised their targets to as high as $20.
• First Advantage reported stronger-than-expected results, posting EPS of $0.26 versus the $0.21 estimate and revenue growth of 8.6% year over year, while the stock traded up 5.3% to $20.58.

Emerald Advisers LLC lowered its position in First Advantage Co. (NYSE:FA - Free Report) by 12.4% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,147,865 shares of the company's stock after selling 162,068 shares during the quarter. Emerald Advisers LLC owned 0.67% of First Advantage worth $13,499,000 at the end of the most recent quarter.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Fifth Third Bancorp purchased a new position in shares of First Advantage during the 1st quarter valued at approximately $45,000. Clearstead Advisors LLC increased its stake in shares of First Advantage by 192.8% in the fourth quarter. Clearstead Advisors LLC now owns 4,333 shares of the company's stock worth $63,000 after buying an additional 2,853 shares during the last quarter. Quantbot Technologies LP acquired a new stake in First Advantage in the second quarter valued at $81,000. BNP Paribas Financial Markets raised its holdings in First Advantage by 105.7% in the second quarter. BNP Paribas Financial Markets now owns 7,166 shares of the company's stock valued at $119,000 after acquiring an additional 3,682 shares in the last quarter. Finally, Tower Research Capital LLC TRC boosted its stake in First Advantage by 503.2% during the 2nd quarter. Tower Research Capital LLC TRC now owns 7,932 shares of the company's stock valued at $132,000 after acquiring an additional 6,617 shares during the last quarter. 94.91% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

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

Insider Transactions at First Advantage

In related 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 sale, the president owned 19,393 shares in the company, valued at $290,895. This represents a 54.61% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director James Lindsey Clark sold 4,921 shares of the firm's stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $15.69, for a total transaction of $77,210.49. Following the completion of the transaction, the director directly owned 56,844 shares in the company, valued at $891,882.36. This represents a 7.97% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 4.40% of the stock is owned by corporate insiders.

First Advantage Stock Up 5.3%

FA stock opened at $20.58 on Tuesday. 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 $20.97. The firm has a fifty day moving average price of $16.60 and a two-hundred day moving average price of $13.88. The firm has a market cap of $3.53 billion, a price-to-earnings ratio of 686.00 and a beta of 1.17.

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 analysts' consensus estimates of $0.21 by $0.05. First Advantage had a net margin of 0.65% and a return on equity of 13.16%. During the same quarter in the previous year, the business earned $0.17 EPS. The firm's quarterly revenue was up 8.6% compared to the same quarter last year. First Advantage has set its FY 2026 guidance at 1.150-1.250 EPS. Research analysts predict that First Advantage Co. will post 0.74 EPS for the current year.

First Advantage 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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