First Advantage (NYSE:FA) Sets New 1-Year High - Here's What Happened

Key Points

• First Advantage shares hit a new 52-week high, trading as high as $20.99 before closing near $20.97 on heavy volume.
• Analysts recently raised price targets on the stock, with JPMorgan and Barclays lifting theirs to $18 and $20, respectively; the overall consensus rating remains Hold with an average target of $18.50.
• Recent earnings topped expectations, as First Advantage reported $0.26 EPS versus the $0.21 estimate and posted 8.6% year-over-year revenue growth, while also guiding FY2026 EPS at 1.15 to 1.25.

First Advantage Co. (NYSE:FA - Get Free Report) shares hit a new 52-week high during mid-day trading on Tuesday . The company traded as high as $20.99 and last traded at $20.97, with a volume of 453922 shares. The stock had previously closed at $20.58.

Analyst Upgrades and Downgrades

Several analysts recently commented on FA shares. Stifel Nicolaus set a $18.00 price target on shares of First Advantage in a research report on Friday, May 8th. JPMorgan Chase & Co. raised their price objective 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. Citigroup upped their target price on shares of First Advantage from $15.00 to $18.00 and gave the company a "neutral" rating in a report on Monday, May 11th. Finally, Barclays increased 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, May 8th. Two investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat, First Advantage currently has an average rating of "Hold" and an average price target of $18.50.

First Advantage Price Performance

The company has a market cap of $3.59 billion, a price-to-earnings ratio of 697.97 and a beta of 1.17. The company's 50 day moving average price is $16.60 and its 200 day moving average price is $13.88. The company has a current ratio of 3.85, a quick ratio of 3.85 and a debt-to-equity ratio of 0.61.

First Advantage (NYSE:FA - Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The company reported $0.26 earnings per share (EPS) 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%. The company's revenue for the quarter was up 8.6% on a year-over-year basis. During the same quarter last year, the business earned $0.17 EPS. First Advantage has set its FY 2026 guidance at 1.150-1.250 EPS. Equities research analysts forecast that First Advantage Co. will post 0.74 earnings per share for the current year.

Insider Activity at First Advantage

In other news, President Joelle M. Smith sold 23,334 shares of the firm'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 value of $350,010.00. Following the completion of the sale, the president directly owned 19,393 shares of the company's stock, valued at $290,895. This trade represents a 54.61% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director James Lindsey Clark sold 4,921 shares of First Advantage 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 completion of the sale, the director owned 56,844 shares in the company, valued at approximately $891,882.36. This trade represents a 7.97% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 4.40% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of FA. Price T Rowe Associates Inc. MD boosted its position in shares of First Advantage by 4.3% during the 4th 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 in the last quarter. Capital World Investors increased its holdings in shares of First Advantage by 9.4% in the 4th quarter. Capital World Investors now owns 9,098,714 shares of the company's stock valued at $132,204,000 after purchasing an additional 780,200 shares in the last quarter. Alliancebernstein L.P. lifted its stake in shares of First Advantage by 18.4% in the third quarter. Alliancebernstein L.P. now owns 6,225,825 shares of the company's stock valued at $95,815,000 after purchasing an additional 969,314 shares during the period. Cat Rock Capital Management LP lifted its stake in shares of 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 purchasing an additional 274,449 shares during the period. Finally, JPMorgan Chase & Co. boosted its holdings in First Advantage by 8.4% during the third quarter. JPMorgan Chase & Co. now owns 3,315,150 shares of the company's stock worth $51,020,000 after buying an additional 255,641 shares in the last quarter. Hedge funds and other institutional investors 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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