First Advantage (NYSE:FA) President Sells $350,010.00 in Stock

Key Points

• First Advantage President Joelle Smith sold 23,334 shares on May 7 at an average price of $15.00, totaling $350,010. The sale was made under a pre-arranged Rule 10b5-1 trading plan, and her remaining stake fell by about 54.6%.
• The company beat first-quarter earnings expectations, reporting EPS of $0.26 versus the $0.21 consensus, while revenue rose 8.6% year over year to $385.2 million and adjusted EBITDA increased 14.3%.
• Despite the insider sale, analysts remain cautious but constructive: Barclays and JPMorgan raised price targets, and the stock’s consensus rating is Hold with an average target of $18.20, above the recent trading price.

First Advantage Co. (NYSE:FA - Get Free Report) President Joelle Smith sold 23,334 shares of First Advantage stock in a transaction dated Thursday, May 7th. The shares were sold at an average price of $15.00, for a total value of $350,010.00. Following the completion of the transaction, the president owned 19,393 shares of the company's stock, valued at approximately $290,895. This represents a 54.61% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

First Advantage Price Performance

NYSE FA traded up $0.20 on Friday, hitting $15.96. The company had a trading volume of 1,987,760 shares, compared to its average volume of 1,153,215. 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 company's fifty day moving average price is $11.75 and its 200-day moving average price is $12.89. The company has a market capitalization of $2.75 billion, a PE ratio of 532.00 and a beta of 1.13. First Advantage Co. has a 12-month low of $8.82 and a 12-month high of $19.01.

First Advantage (NYSE:FA - Get Free Report) last released its quarterly 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%. During the same quarter in the prior year, the firm posted $0.17 earnings per share. The business's 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, analysts predict that First Advantage Co. will post 0.74 earnings per share for the current year.

Institutional Trading of First Advantage

Institutional investors and hedge funds have recently bought and sold shares of the stock. Price T Rowe Associates Inc. MD boosted its stake in shares of First Advantage by 4.3% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 13,954,320 shares of the company's stock valued at $202,757,000 after buying an additional 572,580 shares during the period. Capital World Investors grew its position in shares of First Advantage by 9.4% during the fourth 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. Vanguard Group Inc. increased its stake in shares of First Advantage by 2.8% during the third 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 shares of First Advantage by 18.4% during the third 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 raised its holdings in First Advantage by 8.9% in the fourth quarter. Cat Rock Capital Management LP now owns 3,342,818 shares of the company's stock valued at $48,571,000 after acquiring an additional 274,449 shares in the last quarter. 94.91% of the stock is currently owned by hedge funds and other institutional investors.

First Advantage News Roundup

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

• Positive Sentiment: First Advantage delivered Q1 adjusted EPS of $0.26, topping estimates of $0.21, while revenue rose 8.6% year over year to $385.2 million and adjusted EBITDA increased 14.3%. First Advantage Reports First Quarter 2026 Results
• Positive Sentiment: Management reaffirmed its 2026 outlook and expects margin expansion in the second half, which suggests improving profitability and execution. First Advantage reaffirms 2026 outlook while expecting adjusted EBITDA margins around 29% in 2H
• Positive Sentiment: JPMorgan raised its price target on First Advantage to $18 from $15 and reiterated an overweight rating, implying further upside from current levels. Benzinga report on JPMorgan price target increase
• Neutral Sentiment: First Advantage said its management team will participate in upcoming investor conferences, which could help keep the stock in focus but does not change fundamentals on its own. First Advantage to Participate in Upcoming Investor Conferences
• Neutral Sentiment: The company’s FY 2026 guidance was reaffirmed rather than raised, and revenue guidance remains roughly in line with expectations, which tempers the near-term excitement. First Advantage keeps 2026 guidance, sees margin lift to 29%

Analyst Ratings Changes

Several brokerages have issued reports on FA. Barclays lifted their target price on shares of First Advantage from $15.00 to $20.00 and gave the stock an "overweight" rating in a research note on Friday. JPMorgan Chase & Co. boosted their price target on shares of First Advantage from $15.00 to $18.00 and gave the stock an "overweight" rating in a research report on Friday. Citigroup decreased their target price 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. Finally, Stifel Nicolaus set a $18.00 target price on First Advantage in a report on Friday. Two analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and an average price target of $18.20.

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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