First Advantage (NYSE:FA) Shares Gap Down – What’s Next?

First Advantage Co. (NYSE:FA)’s stock price gapped down prior to trading on Wednesday . The stock had previously closed at $13.70, but opened at $12.68. First Advantage shares last traded at $12.3850, with a volume of 4,815 shares.

Analyst Ratings Changes

A number of brokerages have recently issued reports on FA. JPMorgan Chase & Co. reduced their price objective on First Advantage from $21.00 to $17.00 and set an “overweight” rating for the company in a report on Friday, November 7th. Zacks Research downgraded First Advantage from a “strong-buy” rating to a “hold” rating in a research note on Monday, January 5th. Three equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $19.25.

First Advantage Trading Up 5.1%

The company has a market capitalization of $2.30 billion, a PE ratio of 440.33 and a beta of 1.17. 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 firm’s 50 day moving average is $14.48 and its 200 day moving average is $15.00.

First Advantage (NYSE:FA) last posted its quarterly earnings data on Thursday, November 6th. The company reported $0.30 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.28 by $0.02. First Advantage had a return on equity of 13.16% and a net margin of 0.65%.During the same period in the prior year, the business earned $0.26 earnings per share. The business’s quarterly revenue was up 105.5% compared to the same quarter last year. First Advantage has set its FY 2025 guidance at 0.980-1.020 EPS. As a group, equities analysts predict that First Advantage Co. will post 0.74 EPS for the current year.

Hedge Funds Weigh In On First Advantage

A number of institutional investors have recently bought and sold shares of the stock. American Century Companies Inc. raised its stake in First Advantage by 3.8% in the second quarter. American Century Companies Inc. now owns 2,562,204 shares of the company’s stock worth $42,558,000 after buying an additional 94,220 shares in the last quarter. Boston Partners lifted its position in First Advantage by 19.6% during the 2nd quarter. Boston Partners now owns 2,896,207 shares of the company’s stock worth $47,866,000 after acquiring an additional 474,634 shares during the period. Geode Capital Management LLC raised its holdings in shares of First Advantage by 16.2% during the second quarter. Geode Capital Management LLC now owns 1,818,904 shares of the company’s stock worth $30,215,000 after purchasing an additional 253,773 shares during the last quarter. New York State Common Retirement Fund boosted its holdings in First Advantage by 16.9% in the second quarter. New York State Common Retirement Fund now owns 548,611 shares of the company’s stock valued at $9,112,000 after purchasing an additional 79,211 shares during the last quarter. Finally, BloombergSen Inc. boosted its holdings in First Advantage by 100.4% in the third quarter. BloombergSen Inc. now owns 266,324 shares of the company’s stock valued at $4,099,000 after purchasing an additional 133,436 shares during the last quarter. 94.91% of the stock is owned by institutional investors.

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.