First Advantage Co. (NYSE:FA) Given Average Recommendation of "Hold" by Analysts

Key Points

• Analysts maintain a “Hold” consensus on First Advantage, with four hold ratings and two buy ratings. The average 12-month price target is $19.00, below the stock’s reported trading price of $19.93.
• First Advantage exceeded quarterly earnings expectations, reporting $0.26 in EPS versus the $0.21 consensus, while revenue increased 8.6% year over year. Management issued fiscal 2026 EPS guidance of $1.15 to $1.25.
• Institutional ownership remains high at 94.91%, with several investment firms increasing their stakes, while two insiders sold shares under pre-arranged Rule 10b5-1 trading plans.

Shares of First Advantage Co. (NYSE:FA - Get Free Report) have received a consensus rating of "Hold" from the six ratings firms that are covering the company, MarketBeat Ratings reports. Four equities research analysts have rated the stock with a hold rating and two have issued a buy rating on the company. The average 1 year target price among brokerages that have covered the stock in the last year is $19.00.

A number of research firms have recently commented on FA. JPMorgan Chase & Co. increased their target price on First Advantage from $15.00 to $18.00 and gave the stock an "overweight" rating in a research note on Friday, May 8th. 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 report on Monday, May 11th. Stifel Nicolaus set a $18.00 target price on First Advantage in a research note on Friday, May 8th. Royal Bank Of Canada upped their price target on First Advantage from $17.00 to $21.00 and gave the company a "sector perform" rating in a report on Monday. Finally, Barclays boosted their target price on First Advantage from $15.00 to $20.00 and gave the stock an "overweight" rating in a research report on Friday, May 8th.

First Advantage Price Performance

Shares of FA traded up $0.09 during midday trading on Monday, hitting $19.93. 338,983 shares of the company traded hands, compared to its average volume of 1,372,118. First Advantage has a one year low of $8.82 and a one year high of $22.78. 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 market cap of $3.42 billion, a P/E ratio of 661.63 and a beta of 1.17. The stock has a 50-day moving average of $18.23 and a 200-day moving average of $14.44.

First Advantage (NYSE:FA - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The company reported $0.26 EPS 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 period in the previous year, the firm posted $0.17 earnings per share. The company'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. As a group, sell-side analysts predict that First Advantage will post 0.74 EPS for the current fiscal year.

Insider Transactions at First Advantage

In other First Advantage news, President Joelle M. Smith sold 23,334 shares of the firm's stock in a transaction dated Thursday, May 7th. The stock was sold at an average price of $15.00, for a total value of $350,010.00. Following the transaction, the president directly owned 19,393 shares of the company's stock, valued at approximately $290,895. This trade represents a 54.61% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible 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 business's stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $15.69, for a total transaction of $77,210.49. Following the sale, the director owned 56,844 shares of the company's stock, valued at $891,882.36. This trade represents a 7.97% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 4.40% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On First Advantage

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Brighton Jones LLC bought a new position in First Advantage in the fourth quarter worth approximately $257,000. Sunriver Management LLC raised its holdings in First Advantage by 14.0% in the first quarter. Sunriver Management LLC now owns 3,032,711 shares of the company's stock worth $35,665,000 after purchasing an additional 371,425 shares in the last quarter. Leith Wheeler Investment Counsel Ltd. lifted its position in First Advantage by 22.8% during the first quarter. Leith Wheeler Investment Counsel Ltd. now owns 728,332 shares of the company's stock valued at $8,565,000 after acquiring an additional 135,418 shares during the last quarter. CI Investments Inc. grew its stake in First Advantage by 66.1% during the 1st quarter. CI Investments Inc. now owns 237,500 shares of the company's stock worth $2,793,000 after buying an additional 94,500 shares during the last quarter. Finally, BloombergSen Inc. raised its stake in First Advantage by 41.6% in the 4th quarter. BloombergSen Inc. now owns 377,216 shares of the company's stock worth $5,481,000 after acquiring an additional 110,892 shares during the last quarter. 94.91% of the stock is currently owned by hedge funds and other institutional investors.

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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