First Advantage (NYSE:FA) Reaches New 1-Year High - Still a Buy?

First Advantage Co. (NYSE:FA - Get Free Report) reached a new 52-week high during trading on Tuesday . The company traded as high as $20.97 and last traded at $20.15, with a volume of 1950815 shares trading hands. The stock had previously closed at $20.53.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on FA shares. JPMorgan Chase & Co. boosted their target price on shares of First Advantage from $15.00 to $18.00 and gave the stock an "overweight" rating in a research report on Friday, May 8th. Barclays lifted their price target on First Advantage from $15.00 to $20.00 and gave the stock an "overweight" rating in a research note on Friday, May 8th. Citigroup boosted their price objective on First Advantage from $15.00 to $18.00 and gave the company a "neutral" rating in a report on Monday, May 11th. Finally, Stifel Nicolaus set a $18.00 price objective on First Advantage in a research note on Friday, May 8th. Two investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $18.50.

First Advantage Trading Down 1.9%

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 firm's 50 day simple moving average is $15.89 and its two-hundred day simple moving average is $13.71. The stock has a market cap of $3.46 billion, a P/E ratio of 671.67 and a beta of 1.17.

First Advantage (NYSE:FA - Get Free Report) last issued its earnings results on Thursday, May 7th. The company reported $0.26 earnings per share for the quarter, topping analysts' consensus estimates 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 previous year, the business earned $0.17 EPS. The firm's quarterly 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, equities research analysts predict that First Advantage Co. will post 0.74 earnings per share for the current fiscal year.

Insider Activity

In other news, President Joelle M. Smith sold 23,334 shares of the company's stock in a transaction that occurred on Thursday, May 7th. The stock was sold at an average price of $15.00, for a total transaction of $350,010.00. Following the completion of the transaction, the president directly owned 19,393 shares of the company's stock, valued at approximately $290,895. This represents a 54.61% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director James Lindsey Clark sold 4,921 shares of the company's stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $15.69, for a total value of $77,210.49. Following the transaction, the director directly owned 56,844 shares of the company's stock, valued at $891,882.36. This trade represents a 7.97% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 4.40% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in FA. Alliancebernstein L.P. increased its position in First Advantage by 724.5% in the second quarter. Alliancebernstein L.P. now owns 5,256,511 shares of the company's stock worth $87,311,000 after buying an additional 4,618,946 shares during the period. Capital World Investors boosted its holdings 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 valued at $132,204,000 after acquiring an additional 780,200 shares during the period. SG Americas Securities LLC grew its position in shares of First Advantage by 8,338.6% during the fourth quarter. SG Americas Securities LLC now owns 777,275 shares of the company's stock worth $11,294,000 after acquiring an additional 768,064 shares during the last quarter. Sunriver Management LLC grew its position in shares of First Advantage by 46.1% during the third quarter. Sunriver Management LLC now owns 2,350,614 shares of the company's stock worth $36,176,000 after acquiring an additional 741,913 shares during the last quarter. Finally, Cat Rock Capital Management LP increased its holdings in shares of First Advantage by 29.7% in the 3rd quarter. Cat Rock Capital Management LP now owns 3,068,369 shares of the company's stock worth $47,222,000 after acquiring an additional 702,452 shares during the period. 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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