First Advantage (NYSE:FA) Sets New 52-Week High Following Better-Than-Expected Earnings

Key Points

• First Advantage shares surged 9.6% to a new 52-week high of $22.95 after the company reported quarterly EPS of $0.35, surpassing estimates of $0.29. Revenue increased 14.9% year over year, and fiscal 2026 EPS guidance was set at $1.23–$1.29.
• Analysts raised several price targets, but the overall consensus remains “Hold”, with an average target price of $19.00—below the stock’s recent trading level.
• Institutional investors own 94.91% of the company, while an insider sold 4,921 shares under a pre-arranged Rule 10b5-1 plan. First Advantage has a $3.86 billion market capitalization and provides background screening, identity verification and workforce risk-management services.

First Advantage Co. (NYSE:FA - Get Free Report) shares hit a new 52-week high during mid-day trading on Thursday following a better than expected earnings announcement. The stock traded as high as $22.95 and last traded at $22.4080, with a volume of 344388 shares trading hands. The stock had previously closed at $20.56.

The company reported $0.35 EPS for the quarter, beating the consensus estimate of $0.29 by $0.06. First Advantage had a return on equity of 13.16% and a net margin of 0.65%.During the same quarter in the prior year, the firm posted $0.27 earnings per share. The company's revenue for the quarter was up 14.9% compared to the same quarter last year. First Advantage has set its FY 2026 guidance at 1.23-1.290 EPS.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on FA. Stifel Nicolaus set a $18.00 price objective on First Advantage in a research report on Friday, May 8th. JPMorgan Chase & Co. increased their target price on First Advantage from $15.00 to $18.00 and gave the company an "overweight" rating in a report on Friday, May 8th. Royal Bank Of Canada raised their price target on First Advantage from $17.00 to $21.00 and gave the stock a "sector perform" rating in a research report on Monday. Barclays boosted their price target on First Advantage from $15.00 to $20.00 and gave the stock an "overweight" rating in a report on Friday, May 8th. Finally, Citigroup upped their price objective on First Advantage from $15.00 to $18.00 and gave the company a "neutral" rating in a research report on Monday, May 11th. Two equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $19.00.

Insider Buying and Selling

In other news, Director James Lindsey Clark sold 4,921 shares of the business's stock in a transaction on Monday, June 8th. The shares were sold at an average price of $15.69, for a total transaction of $77,210.49. Following the sale, the director owned 56,844 shares in the company, valued at approximately $891,882.36. The trade was a 7.97% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 4.40% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Versant Capital Management Inc boosted its holdings in shares of First Advantage by 47.1% in the 2nd quarter. Versant Capital Management Inc now owns 2,445 shares of the company's stock valued at $44,000 after buying an additional 783 shares in the last quarter. KBC Group NV acquired a new position in First Advantage in the 1st quarter valued at $35,000. Fifth Third Bancorp purchased a new position in First Advantage during the 1st quarter worth $45,000. Clearstead Advisors LLC lifted its stake in shares of First Advantage by 192.8% in 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. Finally, Quantbot Technologies LP acquired a new stake in shares of First Advantage in the 2nd quarter worth $81,000. 94.91% of the stock is currently owned by institutional investors.

First Advantage Trading Up 9.6%

The firm has a market cap of $3.86 billion, a PE ratio of 755.13 and a beta of 1.17. The company's fifty day moving average price is $18.54 and its two-hundred day moving average price is $14.56. The company has a quick ratio of 3.85, a current ratio of 3.85 and a debt-to-equity ratio of 0.61.

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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