First Advantage (NYSE:FA) Trading Up 5.1% - Should You Buy?

Key Points

• First Advantage's shares jumped 5.1% to $13.25 on Tuesday with about 950,000 shares traded—below the average volume—and trade near a 50-day MA of $11.09 and a 200-day MA of $12.99.
• The company beat Q4 estimates with $0.30 EPS (vs. $0.26 expected) and saw revenue rise 36.8% year‑over‑year, while management set FY2026 guidance of 1.150–1.250 EPS.
• Analysts are mixed (two Buy, four Hold) with a consensus rating of "Hold" and an average price target of $16.75; the stock shows a high PE (~441.7) and ~94.9% institutional ownership.

First Advantage Co. (NYSE:FA - Get Free Report)'s stock price shot up 5.1% on Tuesday . The company traded as high as $13.33 and last traded at $13.25. 949,952 shares changed hands during trading, a decline of 16% from the average session volume of 1,125,591 shares. The stock had previously closed at $12.61.

Analysts Set New Price Targets

FA has been the topic of a number of research analyst reports. Citigroup cut 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. Barclays raised First Advantage from an "equal weight" rating to an "overweight" rating and lifted their price objective for the company from $14.00 to $15.00 in a research note on Friday, March 6th. Finally, Zacks Research downgraded First Advantage from a "strong-buy" rating to a "hold" rating in a report on Monday, January 5th. 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, the company has a consensus rating of "Hold" and an average price target of $16.75.

First Advantage Stock Performance

The firm's 50 day moving average is $11.09 and its two-hundred day moving average is $12.99. The stock has a market capitalization of $2.31 billion, a PE ratio of 441.67 and a beta of 1.14. 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, beating 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%. First Advantage's quarterly revenue was up 36.8% on a year-over-year basis. During the same period in the previous year, the firm posted $0.18 earnings per share. First Advantage has set its FY 2026 guidance at 1.150-1.250 EPS. As a group, research analysts predict that First Advantage Co. will post 0.74 earnings per share for the current year.

Institutional Investors Weigh In On First Advantage

Several large investors have recently bought and sold shares of the stock. Clearstead Advisors LLC boosted 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 valued at $63,000 after buying an additional 2,853 shares during the period. Quantbot Technologies LP acquired a new stake in First Advantage in the second quarter valued at approximately $81,000. BNP Paribas Financial Markets lifted its stake in First Advantage by 105.7% in the second quarter. BNP Paribas Financial Markets now owns 7,166 shares of the company's stock worth $119,000 after acquiring an additional 3,682 shares during the last quarter. Tower Research Capital LLC TRC grew its holdings in First Advantage by 503.2% during the 2nd quarter. Tower Research Capital LLC TRC now owns 7,932 shares of the company's stock worth $132,000 after acquiring an additional 6,617 shares in the last quarter. Finally, SG Americas Securities LLC grew its holdings in First Advantage by 22.6% during the 3rd quarter. SG Americas Securities LLC now owns 9,211 shares of the company's stock worth $142,000 after acquiring an additional 1,700 shares in the last quarter. Hedge funds and other institutional investors own 94.91% of the company's stock.

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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