First Advantage (NYSE:FA) Posts Quarterly Earnings Results, Beats Expectations By $0.06 EPS

First Advantage (NYSE:FA) announced its earnings results on Thursday. The company reported $0.35 earnings per share for the quarter, beating the consensus estimate of $0.29 by $0.06, Briefing.com reports. First Advantage had a net margin of 0.65% and a return on equity of 13.16%. The company’s revenue was up 14.9% on a year-over-year basis. During the same period in the prior year, the company earned $0.27 EPS. First Advantage updated its FY 2026 guidance to 1.23-1.290 EPS.

First Advantage Stock Up 17.3%

FA traded up $3.56 on Thursday, hitting $24.12. The company had a trading volume of 4,725,725 shares, compared to its average volume of 1,398,402. The stock has a market capitalization of $4.14 billion, a price-to-earnings ratio of 804.00 and a beta of 1.16. The company has a debt-to-equity ratio of 0.61, a quick ratio of 3.85 and a current ratio of 3.85. The stock has a fifty day moving average price of $18.70 and a 200-day moving average price of $14.62. First Advantage has a 12-month low of $8.82 and a 12-month high of $24.58.

Analysts Set New Price Targets

A number of analysts have weighed in on the company. Needham & Company LLC upgraded First Advantage from a “hold” rating to a “buy” rating and set a $28.00 target price on the stock in a research note on Thursday. Barclays upped their price target on shares of First Advantage from $15.00 to $20.00 and gave the stock an “overweight” rating in a report on Friday, May 8th. JPMorgan Chase & Co. boosted their price objective on shares of First Advantage from $15.00 to $18.00 and gave the company 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 stock a “neutral” rating in a research note on Monday, May 11th. Finally, Royal Bank Of Canada raised their target price on shares of First Advantage from $17.00 to $21.00 and gave the stock a “sector perform” rating in a research report on Monday. Three research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, First Advantage currently has a consensus rating of “Moderate Buy” and a consensus price target of $20.50.

Insider Activity at First Advantage

In other news, Director James Lindsey Clark sold 4,921 shares of the firm’s stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $15.69, for a total value of $77,210.49. Following the sale, the director directly owned 56,844 shares in the company, valued at approximately $891,882.36. This trade represents a 7.97% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 4.40% of the company’s stock.

Institutional Investors Weigh In On First Advantage

Hedge funds and other institutional investors have recently bought and sold shares of the company. Quantbot Technologies LP acquired a new stake in First Advantage in the second quarter valued at approximately $81,000. BNP Paribas Financial Markets grew its holdings 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 purchasing an additional 3,682 shares during the last quarter. Tower Research Capital LLC TRC increased its position in shares of First Advantage by 503.2% during the second quarter. Tower Research Capital LLC TRC now owns 7,932 shares of the company’s stock worth $132,000 after purchasing an additional 6,617 shares in the last quarter. Occudo Quantitative Strategies LP purchased a new stake in shares of First Advantage during the 3rd quarter valued at $163,000. Finally, Prudential Financial Inc. purchased a new stake in shares of First Advantage during the 2nd quarter valued at $167,000. 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.