First Advantage Co. (NYSE:FA) Receives Average Rating of "Hold" from Brokerages

Key Points

• Brokerage consensus: Six analysts give First Advantage a consensus "Hold" (four holds, two buys) with an average 12‑month price target of $16.75; recent moves include Barclays upgrading to "overweight" while Zacks and Citi trimmed ratings/targets.
• Quarterly results and guidance: FA beat Q4 estimates with EPS of $0.30 (vs. $0.26) and revenue up 36.8% year‑over‑year, and issued FY2026 guidance of $1.15–$1.25 EPS (analysts forecast ~0.74 EPS for the current fiscal year).
• Market and ownership profile: Shares traded near $12.46 (52‑week range $8.82–$19.01) with a market cap of about $2.17B and a very high trailing P/E (~415x), and institutional investors own roughly 94.9% of the stock.

Shares of First Advantage Co. (NYSE:FA - Get Free Report) have been given a consensus recommendation of "Hold" by the six brokerages that are covering the firm, MarketBeat 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 twelve-month price target among brokers that have issued a report on the stock in the last year is $16.75.

A number of research analysts have weighed in on the stock. Zacks Research cut shares of First Advantage from a "strong-buy" rating to a "hold" rating in a research note on Monday, January 5th. Barclays upgraded shares of First Advantage from an "equal weight" rating to an "overweight" rating and upped their price target for the company from $14.00 to $15.00 in a research note on Friday, March 6th. Finally, Citigroup dropped their price target on shares of First Advantage from $16.00 to $15.00 and set a "neutral" rating on the stock in a research note on Friday, March 6th.

First Advantage Trading Up 1.4%

Shares of FA stock opened at $12.46 on Friday. First Advantage has a 52-week low of $8.82 and a 52-week high of $19.01. The company has a debt-to-equity ratio of 0.61, a quick ratio of 3.85 and a current ratio of 3.85. The company has a 50-day simple moving average of $11.23 and a two-hundred day simple moving average of $12.97. The company has a market capitalization of $2.17 billion, a price-to-earnings ratio of 415.33 and a beta of 1.14.

First Advantage (NYSE:FA - Get Free Report) last issued its quarterly earnings data on Thursday, February 26th. The company reported $0.30 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.26 by $0.04. First Advantage had a net margin of 0.65% and a return on equity of 13.16%. During the same period in the prior year, the business posted $0.18 earnings per share. The firm's revenue was up 36.8% on a year-over-year basis. First Advantage has set its FY 2026 guidance at 1.150-1.250 EPS. Research analysts anticipate that First Advantage will post 0.74 EPS for the current fiscal year.

Institutional Trading of First Advantage

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Price T Rowe Associates Inc. MD increased its holdings in First Advantage by 4.3% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 13,954,320 shares of the company's stock worth $202,757,000 after acquiring an additional 572,580 shares during the period. Capital World Investors increased its holdings in shares of First Advantage by 9.4% in the 4th quarter. Capital World Investors now owns 9,098,714 shares of the company's stock worth $132,204,000 after buying an additional 780,200 shares during the last quarter. Vanguard Group Inc. increased its holdings in shares of First Advantage by 2.8% in the 3rd quarter. Vanguard Group Inc. now owns 7,613,968 shares of the company's stock worth $117,179,000 after buying an additional 210,187 shares during the last quarter. Alliancebernstein L.P. increased its holdings in shares of First Advantage by 18.4% in the 3rd quarter. Alliancebernstein L.P. now owns 6,225,825 shares of the company's stock worth $95,815,000 after buying an additional 969,314 shares during the last quarter. Finally, Cat Rock Capital Management LP increased its holdings in shares of First Advantage by 8.9% in the 4th quarter. Cat Rock Capital Management LP now owns 3,342,818 shares of the company's stock worth $48,571,000 after buying an additional 274,449 shares during the last quarter. Institutional investors own 94.91% of the company's stock.

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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