First Advantage (NYSE:FA) Price Target Lowered to $15.00 at Citigroup

Key Points

• Citigroup cut its price target on First Advantage from $16.00 to $15.00 and kept a "neutral" rating, with that target implying roughly a 21.36% upside from the prior close.
• First Advantage beat Q results with $0.30 EPS vs. $0.26 expected, revenue rose 36.8% year-over-year, and management set FY2026 guidance of $1.150–$1.250 EPS.
• Analysts' consensus is a "Hold" with an average target of $16.75 (two Buys, four Holds); the stock traded at $12.36 midday, has a $2.15B market cap and a very high P/E of 412.00.

First Advantage (NYSE:FA - Get Free Report) had its price target decreased by equities research analysts at Citigroup from $16.00 to $15.00 in a report released on Friday,Benzinga reports. The firm currently has a "neutral" rating on the stock. Citigroup's price objective suggests a potential upside of 21.36% from the stock's previous close.

Several other research analysts also recently weighed in on FA. JPMorgan Chase & Co. reduced their price target on shares of First Advantage from $21.00 to $17.00 and set an "overweight" rating for the company in a research report on Friday, November 7th. Zacks Research lowered First Advantage from a "strong-buy" rating to a "hold" rating in a research note on Monday, January 5th. Finally, Barclays upgraded First Advantage from an "equal weight" rating to an "overweight" rating and boosted their price objective for the stock from $14.00 to $15.00 in a research note on Friday. Two investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $16.75.

First Advantage Price Performance

Shares of NYSE:FA traded up $0.20 during midday trading on Friday, reaching $12.36. 598,081 shares of the company's stock traded hands, compared to its average volume of 1,101,138. The company has a fifty day simple moving average of $12.89 and a two-hundred day simple moving average of $14.05. First Advantage has a 1 year low of $8.82 and a 1 year high of $19.01. The company has a market cap of $2.15 billion, a P/E ratio of 412.00 and a beta of 1.20. The company has a debt-to-equity ratio of 0.61, a quick ratio of 3.85 and a current ratio of 3.85.

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

Hedge Funds Weigh In On First Advantage

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Clearstead Advisors LLC raised its holdings in shares of First Advantage by 192.8% during the 4th quarter. Clearstead Advisors LLC now owns 4,333 shares of the company's stock worth $63,000 after acquiring an additional 2,853 shares during the period. Quantbot Technologies LP acquired a new stake in First Advantage during the second quarter worth about $81,000. Parkside Financial Bank & Trust raised its stake in First Advantage by 22.8% during the second quarter. Parkside Financial Bank & Trust now owns 7,164 shares of the company's stock worth $119,000 after purchasing an additional 1,328 shares during the period. BNP Paribas Financial Markets boosted its holdings in First Advantage by 105.7% in the 2nd quarter. BNP Paribas Financial Markets now owns 7,166 shares of the company's stock valued at $119,000 after purchasing an additional 3,682 shares during the last quarter. Finally, Tower Research Capital LLC TRC boosted its holdings in First Advantage by 503.2% in the 2nd quarter. Tower Research Capital LLC TRC now owns 7,932 shares of the company's stock valued at $132,000 after purchasing an additional 6,617 shares during the last quarter. Institutional investors and hedge funds own 94.91% of the company's stock.

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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