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

Key Points

• Analysts give First Advantage a consensus "Hold" rating (four holds, two buys) with an average 12‑month price target of $16.75, while recent broker actions are mixed — Barclays upgraded and raised its target, Zacks downgraded, and Citi trimmed its target to $15.
• Large institutional investors have been adding shares aggressively — notably AllianceBernstein, Capital World Investors and SG Americas — leaving institutions with about 94.91% ownership.
• Operationally, First Advantage beat quarterly EPS estimates ($0.30 vs. $0.26) and reported revenue up 36.8% year‑over‑year, and set FY2026 guidance of 1.15–1.25 EPS, though the stock trades near $11.44 with a high P/E (~381) and a 52‑week range of $8.82–$19.01.

First Advantage Co. (NYSE:FA - Get Free Report) has received a consensus recommendation of "Hold" from the six analysts that are currently covering the firm, MarketBeat Ratings reports. Four equities research analysts have rated the stock with a hold rating and two have assigned a buy rating to the company. The average twelve-month price objective among brokerages that have issued ratings on the stock in the last year is $16.75.

A number of brokerages recently commented on FA. Zacks Research downgraded First Advantage from a "strong-buy" rating to a "hold" rating in a research note on Monday, January 5th. Barclays raised shares of First Advantage from an "equal weight" rating to an "overweight" rating and boosted their price target for the company from $14.00 to $15.00 in a report on Friday, March 6th. Finally, Citigroup dropped their price objective on shares of First Advantage from $16.00 to $15.00 and set a "neutral" rating on the stock in a report on Friday, March 6th.

Institutional Investors Weigh In On First Advantage

Several large investors have recently made changes to their positions in FA. Alliancebernstein L.P. raised its holdings in shares of First Advantage by 724.5% during the second quarter. Alliancebernstein L.P. now owns 5,256,511 shares of the company's stock valued at $87,311,000 after buying an additional 4,618,946 shares during the last quarter. Capital World Investors grew its holdings in 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 in the last quarter. SG Americas Securities LLC increased its position in First Advantage by 8,338.6% in the 4th quarter. SG Americas Securities LLC now owns 777,275 shares of the company's stock valued at $11,294,000 after acquiring an additional 768,064 shares during the period. Sunriver Management LLC raised its stake in First Advantage by 46.1% during the 3rd quarter. Sunriver Management LLC now owns 2,350,614 shares of the company's stock valued at $36,176,000 after acquiring an additional 741,913 shares in the last quarter. Finally, Cat Rock Capital Management LP raised its stake in First Advantage by 29.7% during the 3rd quarter. Cat Rock Capital Management LP now owns 3,068,369 shares of the company's stock valued at $47,222,000 after acquiring an additional 702,452 shares in the last quarter. Institutional investors and hedge funds own 94.91% of the company's stock.

First Advantage Stock Performance

Shares of FA stock opened at $11.44 on Tuesday. The company has a quick ratio of 3.85, a current ratio of 3.85 and a debt-to-equity ratio of 0.61. The business has a 50 day moving average of $11.55 and a two-hundred day moving average of $13.41. First Advantage has a 52 week low of $8.82 and a 52 week high of $19.01. The company has a market cap of $1.99 billion, a P/E ratio of 381.33 and a beta of 1.19.

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