First Advantage (NYSE:FA) Shares Gap Up After Better-Than-Expected Earnings

First Advantage Co. (NYSE:FA) gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $9.52, but opened at $11.58. First Advantage shares last traded at $10.58, with a volume of 735,718 shares changing hands.

The company reported $0.30 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.26 by $0.04. First Advantage had a net margin of 0.65% and a return on equity of 13.16%. The business’s revenue for the quarter was up 36.8% compared to the same quarter last year. During the same period last year, the firm posted $0.18 earnings per share. First Advantage has set its FY 2026 guidance at 1.150-1.250 EPS.

Analyst Upgrades and Downgrades

FA has been the topic of a number of analyst reports. JPMorgan Chase & Co. lowered their price objective on First Advantage from $21.00 to $17.00 and set an “overweight” rating on the stock in a report on Friday, November 7th. Zacks Research downgraded First Advantage from a “strong-buy” rating to a “hold” rating in a report on Monday, January 5th. Three investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $19.25.

Institutional Trading of First Advantage

Several hedge funds have recently added to or reduced their stakes in the business. Clearstead Advisors LLC increased its position in First Advantage by 192.8% in the 4th quarter. Clearstead Advisors LLC now owns 4,333 shares of the company’s stock worth $63,000 after buying an additional 2,853 shares during the period. Quantbot Technologies LP acquired a new stake in shares of First Advantage in the second quarter worth $81,000. Parkside Financial Bank & Trust increased its position in First Advantage by 22.8% during the second quarter. Parkside Financial Bank & Trust now owns 7,164 shares of the company’s stock worth $119,000 after acquiring an additional 1,328 shares during the period. BNP Paribas Financial Markets increased its position in First Advantage by 105.7% during the second quarter. BNP Paribas Financial Markets now owns 7,166 shares of the company’s stock worth $119,000 after acquiring an additional 3,682 shares during the period. Finally, Tower Research Capital LLC TRC raised its stake in First Advantage by 503.2% during the 2nd quarter. Tower Research Capital LLC TRC now owns 7,932 shares of the company’s stock valued at $132,000 after purchasing an additional 6,617 shares during the last quarter. Institutional investors own 94.91% of the company’s stock.

First Advantage Trading Up 12.9%

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 stock has a market capitalization of $1.87 billion, a P/E ratio of 359.80 and a beta of 1.17. The business’s fifty day simple moving average is $13.30 and its two-hundred day simple moving average is $14.23.

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.