First Advantage (NYSE:FA) Shares Up 18.5% Following Strong Earnings

Key Points

• Shares jumped 18.5% after First Advantage reported $0.26 EPS versus $0.21 expected and revenue up 8.6% year‑over‑year, while issuing FY2026 guidance of $1.15–$1.25 EPS.
• Analyst backdrop: Barclays upgraded FA to "overweight" and raised its target to $15, though the consensus rating remains "Hold" with an average price target of $16.75.
• Ownership and valuation: Institutions own about 94.9% of shares and the stock trades at a reported P/E of 510.73 with a market cap near $2.63 billion.

Shares of First Advantage Co. (NYSE:FA - Get Free Report) shot up 18.5% on Thursday following a better than expected earnings announcement. The stock traded as high as $14.70 and last traded at $15.1670. 132,495 shares traded hands during mid-day trading, a decline of 88% from the average session volume of 1,103,894 shares. The stock had previously closed at $12.80.

The company reported $0.26 EPS for the quarter, beating the consensus estimate of $0.21 by $0.05. First Advantage had a return on equity of 13.16% and a net margin of 0.65%.The business's revenue for the quarter was up 8.6% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.17 earnings per share. First Advantage has set its FY 2026 guidance at 1.150-1.250 EPS.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on FA. Barclays raised First Advantage from an "equal weight" rating to an "overweight" rating and upped their target price for the stock from $14.00 to $15.00 in a research report on Friday, March 6th. Citigroup dropped their target price on First Advantage from $16.00 to $15.00 and set a "neutral" rating on the stock in a research report on Friday, March 6th. 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 data from MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $16.75.

Hedge Funds Weigh In On First Advantage

A number of hedge funds have recently added to or reduced their stakes in the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in shares of First Advantage by 4.3% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 35,567 shares of the company's stock valued at $501,000 after acquiring an additional 1,471 shares during the period. SG Americas Securities LLC boosted its holdings in shares of First Advantage by 22.6% during the third quarter. SG Americas Securities LLC now owns 9,211 shares of the company's stock valued at $142,000 after acquiring an additional 1,700 shares during the period. Swiss National Bank boosted its holdings in shares of First Advantage by 1.6% during the third quarter. Swiss National Bank now owns 151,544 shares of the company's stock valued at $2,332,000 after acquiring an additional 2,400 shares during the period. The Manufacturers Life Insurance Company boosted its holdings in shares of First Advantage by 5.9% during the second quarter. The Manufacturers Life Insurance Company now owns 44,279 shares of the company's stock valued at $735,000 after acquiring an additional 2,463 shares during the period. Finally, Clearstead Advisors LLC boosted its holdings in shares of First Advantage by 192.8% during the fourth quarter. Clearstead Advisors LLC now owns 4,333 shares of the company's stock valued at $63,000 after acquiring an additional 2,853 shares during the period. Institutional investors and hedge funds own 94.91% of the company's stock.

First Advantage Trading Up 19.3%

The firm's fifty day moving average price is $11.62 and its 200-day moving average price is $12.88. 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 has a market cap of $2.63 billion, a price-to-earnings ratio of 510.73 and a beta of 1.13.

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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