First Advantage (NYSE:FA) Shares Gap Down – Time to Sell?

First Advantage Co. (NYSE:FA) gapped down prior to trading on Tuesday. The stock had previously closed at $23.52, but opened at $21.22. First Advantage shares last traded at $21.1380, with a volume of 2,763,160 shares.

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on FA shares. Zacks Research cut shares of First Advantage from a “strong-buy” rating to a “hold” rating in a report on Tuesday, October 6th. Needham & Company LLC boosted their price objective on shares of First Advantage from $28.00 to $30.00 and gave the stock a “buy” rating in a report on Friday. Barclays upped their price objective on First Advantage from $30.00 to $34.00 and gave the company an “overweight” rating in a research report on Friday. Jefferies Financial Group reiterated a “hold” rating and set a $26.00 target price on shares of First Advantage in a research note on Friday. Finally, Royal Bank Of Canada lifted their target price on First Advantage from $21.00 to $24.00 and gave the stock a “sector perform” rating in a report on Friday, August 7th. Three equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $24.57.

First Advantage Stock Performance

The firm has a market capitalization of $3.62 billion, a PE ratio of 704.43 and a beta of 1.12. The company has a current ratio of 3.85, a quick ratio of 3.85 and a debt-to-equity ratio of 0.61. The business’s 50 day simple moving average is $20.34 and its two-hundred day simple moving average is $16.59.

First Advantage (NYSE:FA) last released its quarterly earnings results on Thursday, November 5th. The company reported $0.38 earnings per share for the quarter, beating the consensus estimate of $0.34 by $0.04. First Advantage had a return on equity of 13.16% and a net margin of 0.65%. First Advantage’s revenue was up 13.8% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.30 EPS. Research analysts expect that First Advantage Co. will post 0.74 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. KBC Group NV purchased a new position in shares of First Advantage in the first quarter worth approximately $35,000. Versant Capital Management Inc grew its position in First Advantage by 47.1% during the second 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 during the period. Fifth Third Bancorp bought a new stake in First Advantage during the first quarter valued at approximately $45,000. Sterling Capital Management LLC increased its holdings in First Advantage by 323.6% during the third quarter. Sterling Capital Management LLC now owns 2,694 shares of the company’s stock valued at $48,000 after buying an additional 2,058 shares during the last quarter. Finally, State of Wyoming purchased a new stake in First Advantage during the second quarter valued at approximately $81,000. Institutional investors own 94.91% of the company’s stock.

First Advantage Company Profile

First Advantage provides technology-enabled background screening and verification services to employers and other organizations. Its offerings include criminal-record searches, employment and education verification, identity checks, drug and health screening, and related compliance services used in hiring and workforce management.

The company serves customers across North America and international markets, including businesses that need screening processes across multiple locations. Its services are designed to help organizations assess candidates and manage workplace-related risks.

First Advantage became a publicly traded company in 2021.