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

First Advantage Co. (NYSE:FA) shares gapped down before the market opened on Friday . The stock had previously closed at $14.92, but opened at $14.47. First Advantage shares last traded at $14.41, with a volume of 11,639 shares trading hands.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on the stock. Zacks Research raised shares of First Advantage from a “hold” rating to a “strong-buy” rating in a research report on Friday, November 14th. JPMorgan Chase & Co. cut their price target on First Advantage from $21.00 to $17.00 and set an “overweight” rating on the stock in a research note on Friday, November 7th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat, First Advantage presently has a consensus rating of “Moderate Buy” and an average price target of $19.25.

First Advantage Stock Performance

The company’s fifty day simple moving average is $13.92 and its two-hundred day simple moving average is $15.45. The company has a market capitalization of $2.49 billion, a price-to-earnings ratio of 477.00 and a beta of 1.18. 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) last issued its quarterly earnings results on Thursday, November 6th. The company reported $0.30 EPS for the quarter, topping the consensus estimate of $0.28 by $0.02. First Advantage had a net margin of 0.65% and a return on equity of 13.16%. The firm’s quarterly revenue was up 105.5% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.26 EPS. First Advantage has set its FY 2025 guidance at 0.980-1.020 EPS. Equities research analysts predict that First Advantage Co. will post 0.74 earnings per share for the current fiscal year.

Institutional Investors Weigh In On First Advantage

Institutional investors and hedge funds have recently made changes to their positions in the company. American Century Companies Inc. grew its holdings in shares of First Advantage by 3.8% during the second quarter. American Century Companies Inc. now owns 2,562,204 shares of the company’s stock valued at $42,558,000 after purchasing an additional 94,220 shares during the last quarter. Boston Partners grew its stake 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 buying an additional 474,634 shares during the last quarter. Russell Investments Group Ltd. increased its position in First Advantage by 2,967.1% in the first quarter. Russell Investments Group Ltd. now owns 9,232 shares of the company’s stock worth $130,000 after buying an additional 8,931 shares during the period. Fred Alger Management LLC lifted its stake in First Advantage by 10.4% in the first quarter. Fred Alger Management LLC now owns 1,289,173 shares of the company’s stock valued at $18,164,000 after buying an additional 121,687 shares during the last quarter. Finally, New York State Common Retirement Fund boosted its holdings in shares of First Advantage by 16.9% during 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 acquiring an additional 79,211 shares during the period. 94.91% of the stock is owned by institutional investors and hedge funds.

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.