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

First Advantage Co. (NYSE:FA)’s share price gapped down before the market opened on Friday . The stock had previously closed at $20.93, but opened at $20.31. First Advantage shares last traded at $21.10, with a volume of 50,724 shares trading hands.

Analyst Ratings Changes

Several analysts recently weighed in on FA shares. Zacks Research upgraded shares of First Advantage from a “hold” rating to a “strong-buy” rating in a report on Monday, August 17th. Royal Bank Of Canada upped their price objective on shares of First Advantage from $21.00 to $24.00 and gave the stock a “sector perform” rating in a report on Friday, August 7th. Needham & Company LLC raised shares of First Advantage from a “hold” rating to a “buy” rating and set a $28.00 target price for the company in a research report on Thursday, August 6th. Citigroup lifted their target price on shares of First Advantage from $18.00 to $22.00 and gave the company a “neutral” rating in a research note on Monday, August 17th. Finally, Stifel Nicolaus set a $18.00 price target on shares of First Advantage in a research report on Friday, May 8th. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, First Advantage presently has a consensus rating of “Moderate Buy” and an average price target of $23.33.

First Advantage Trading Up 2.3%

The stock has a market cap of $3.68 billion, a PE ratio of 713.67 and a beta of 1.16. The firm has a 50-day moving average price of $20.27 and a 200-day moving average price of $15.45. 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 released its quarterly earnings data on Thursday, August 6th. The company reported $0.35 earnings per share for the quarter, beating analysts’ consensus estimates of $0.29 by $0.06. 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 14.9% compared to the same quarter last year. During the same quarter last year, the company posted $0.27 earnings per share. First Advantage has set its FY 2026 guidance at 1.23-1.290 EPS. As a group, equities analysts anticipate that First Advantage Co. will post 0.74 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director James Lindsey Clark sold 4,921 shares of the company’s stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $15.69, for a total value of $77,210.49. Following the transaction, the director directly owned 56,844 shares of the company’s stock, valued at approximately $891,882.36. This represents a 7.97% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 4.40% of the stock is currently owned by insiders.

Institutional Trading of First Advantage

Institutional investors have recently added to or reduced their stakes in the business. BlackRock Inc. purchased a new stake in shares of First Advantage during the second quarter valued at $217,748,000. Alliancebernstein L.P. raised its position in First Advantage by 724.5% in the 2nd quarter. Alliancebernstein L.P. now owns 5,256,511 shares of the company’s stock worth $87,311,000 after buying an additional 4,618,946 shares during the last quarter. Bamco Inc. NY bought a new position in First Advantage during the 2nd quarter valued at about $63,214,000. California State Teachers Retirement System lifted its stake in First Advantage by 1,656.8% during the 2nd quarter. California State Teachers Retirement System now owns 1,635,619 shares of the company’s stock valued at $29,523,000 after acquiring an additional 1,542,518 shares during the period. Finally, Palisade Capital Management LP purchased a new stake in shares of First Advantage during the 2nd quarter valued at about $14,533,000. 94.91% of the stock is currently owned by hedge funds and other 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.