First Advantage (NYSE:FA) Shares Gap Up - Here's What Happened

Key Points

• First Advantage shares opened sharply higher, rising from a previous close of $19.66 to $21.08 before trading near $21.08.
• Analyst sentiment remains positive overall, with three Buy and three Hold ratings producing a “Moderate Buy” consensus and an average price target of $23.33.
• The company exceeded quarterly EPS expectations, reporting $0.35 versus the $0.29 consensus, while revenue increased 14.9% year over year; institutional investors own approximately 94.91% of the stock.

First Advantage Co. (NYSE:FA - Get Free Report)'s share price gapped up before the market opened on Friday. The stock had previously closed at $19.66, but opened at $21.08. First Advantage shares last traded at $21.0780, with a volume of 28,991 shares traded.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on FA shares. Zacks Research lowered shares of First Advantage from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, October 6th. Barclays boosted their price objective on shares of First Advantage from $20.00 to $30.00 and gave the company an "overweight" rating in a research report on Friday, August 7th. Royal Bank Of Canada increased their target price on First Advantage from $21.00 to $24.00 and gave the stock a "sector perform" rating in a research report on Friday, August 7th. Citigroup increased their price target on shares of First Advantage from $18.00 to $22.00 and gave the stock a "neutral" rating in a research note on Monday, August 17th. Finally, Needham & Company LLC raised First Advantage from a "hold" rating to a "buy" rating and set a $28.00 price objective on the stock in a research note on Thursday, August 6th. Three investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $23.33.

First Advantage Trading Up 0.0%

The firm has a market cap of $3.64 billion, a P/E ratio of 710.83 and a beta of 1.12. The business's 50 day moving average is $20.09 and its 200-day moving average is $17.99. The company has a quick ratio of 3.85, a current 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, August 6th. The company reported $0.35 EPS for the quarter, topping the consensus estimate of $0.29 by $0.06. 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 $0.27 EPS. The firm's quarterly revenue was up 14.9% on a year-over-year basis. First Advantage has set its FY 2026 guidance at 1.23-1.290 EPS. As a group, analysts forecast that First Advantage Co. will post 0.74 earnings per share for the current fiscal year.

Institutional Investors Weigh In On First Advantage

A number of hedge funds have recently made changes to their positions in the business. BlackRock Inc. bought a new stake in shares of First Advantage during the second quarter valued at about $217,748,000. Bamco Inc. NY acquired a new position in First Advantage in the second quarter worth approximately $63,214,000. Palisade Capital Management LP acquired a new position in shares of First Advantage in the 2nd quarter worth $14,533,000. Estuary Capital Management LP acquired a new stake in First Advantage during the 1st quarter worth about $6,558,000. Finally, Bank of America Corp DE acquired a new stake in shares of First Advantage during the second quarter valued at approximately $7,600,000. Institutional investors own 94.91% of the company's stock.

First Advantage Company Profile

First Advantage Corporation NYSE: FA is a global human capital and background screening company that helps employers make informed hiring, onboarding and workforce-management decisions. Its technology and services are used by organizations across industries to assess candidates and support compliance throughout the employment lifecycle.

The company provides employment background checks, criminal-record searches, employment and education verification, identity services, drug and health screening, driving-record checks, international screening and continuous workforce monitoring.

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