First Advantage (NYSE:FA) Given New $18.00 Price Target at JPMorgan Chase & Co.

Key Points

• JPMorgan raised its price target on First Advantage to $18.00 with an "overweight" rating (about a 13.8% upside), while broker views vary (Barclays $20 overweight, Citi $15 neutral) and the MarketBeat consensus remains a "Hold" with an average target of $18.20.
• First Advantage beat Q1 expectations—adjusted EPS $0.26 vs. $0.21 and revenue $385.2M (+8.6% YoY)—with adjusted EBITDA margin at 27.3% and management forecasting margins near ~29% in 2H alongside FY26 EPS guidance of $1.15–$1.25.
• The company is returning capital and reducing leverage (repurchased $19.5M of shares and made $50M in voluntary debt prepayments), but GAAP net income is small and the stock trades at a stretched P/E, leaving valuation sensitive to execution.

First Advantage (NYSE:FA - Get Free Report) had its price objective lifted by JPMorgan Chase & Co. from $15.00 to $18.00 in a report released on Friday,Benzinga reports. The firm currently has an "overweight" rating on the stock. JPMorgan Chase & Co.'s price target indicates a potential upside of 13.82% from the company's previous close.

A number of other equities analysts also recently issued reports on the company. Stifel Nicolaus set a $18.00 price objective on First Advantage in a report on Friday. Barclays boosted their target price on shares of First Advantage from $15.00 to $20.00 and gave the company an "overweight" rating in a research note on Friday. Finally, Citigroup dropped their price target on First Advantage from $16.00 to $15.00 and set a "neutral" rating on the stock in a research note on Friday, March 6th. Two analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, First Advantage currently has a consensus rating of "Hold" and an average price target of $18.20.

First Advantage Stock Performance

FA traded up $0.06 during trading hours on Friday, hitting $15.82. The stock had a trading volume of 1,068,965 shares, compared to its average volume of 1,142,221. First Advantage has a 1 year low of $8.82 and a 1 year high of $19.01. The company's fifty day simple moving average is $11.75 and its 200 day simple moving average is $12.89. The stock has a market cap of $2.73 billion, a PE ratio of 526.67 and a beta of 1.13. The company has a quick ratio of 3.85, a current ratio of 3.85 and a debt-to-equity ratio of 0.61.

First Advantage (NYSE:FA - Get Free Report) last posted 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 quarterly revenue was up 8.6% compared to the same quarter last year. During the same period in the prior year, the business earned $0.17 earnings per share. First Advantage has set its FY 2026 guidance at 1.150-1.250 EPS. Equities analysts anticipate that First Advantage will post 0.74 earnings per share for the current year.

Hedge Funds Weigh In On First Advantage

Hedge funds have recently bought and sold shares of the business. Price T Rowe Associates Inc. MD lifted its position in shares of First Advantage by 4.3% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 13,954,320 shares of the company's stock worth $202,757,000 after purchasing an additional 572,580 shares during the last quarter. Capital World Investors grew its holdings in shares of First Advantage by 9.4% in the fourth quarter. Capital World Investors now owns 9,098,714 shares of the company's stock worth $132,204,000 after purchasing an additional 780,200 shares during the last quarter. Vanguard Group Inc. increased its stake in 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 period. Alliancebernstein L.P. increased its stake in 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 period. Finally, Cat Rock Capital Management LP lifted its holdings in First Advantage by 8.9% during the 4th quarter. Cat Rock Capital Management LP now owns 3,342,818 shares of the company's stock valued at $48,571,000 after buying an additional 274,449 shares in the last quarter. Institutional investors own 94.91% of the company's stock.

Trending Headlines about First Advantage

Here are the key news stories impacting First Advantage this week:

• Positive Sentiment: Q1 beat on EPS and revenue — First Advantage delivered adjusted EPS of $0.26 vs. consensus $0.21 and revenue of $385.2M (+8.6% YoY), showing both top-line growth and operating leverage. First Quarter 2026 Results
• Positive Sentiment: Margin momentum — Adjusted EBITDA rose to $105.3M (27.3% margin) and management expects adjusted EBITDA margins to lift to ~29% in 2H, which supports stronger cash generation and profitability. Margin Guidance Article
• Positive Sentiment: Capital allocation: buybacks and debt paydown — The company repurchased $19.5M of shares under a $100M program and made voluntary debt prepayments (totaling $50M this year), which reduces leverage and returns cash to shareholders. Press Release
• Neutral Sentiment: Guidance reaffirmed — Management reaffirmed FY26 EPS guidance of $1.15–$1.25 and revenue guidance of $1.6–$1.7B (consensus ~$1.7B), leaving full-year targets intact but with limited upside surprise. Guidance Reaffirmation
• Neutral Sentiment: Investor access — Management will participate in upcoming investor conferences, which can increase analyst visibility and help institutional interest. Investor Conferences
• Negative Sentiment: High valuation and modest GAAP profits — The reported net income was small ($2.2M, 0.6% margin) and the stock trades at a stretched P/E, leaving the share price sensitive to execution slippage. Earnings Snapshot

First Advantage Company 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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