First Advantage (NYSE:FA) Price Target Cut to $14.00 by Analysts at Barclays

First Advantage (NYSE:FA) had its price target reduced by investment analysts at Barclays from $18.00 to $14.00 in a research report issued on Friday,Benzinga reports. The brokerage presently has an “equal weight” rating on the stock. Barclays‘s price objective would indicate a potential upside of 23.24% from the stock’s previous close.

FA has been the subject of several other reports. Zacks Research cut First Advantage from a “strong-buy” rating to a “hold” rating in a report on Monday, January 5th. JPMorgan Chase & Co. lowered their price target on shares of First Advantage from $21.00 to $17.00 and set an “overweight” rating on the stock in a research report on Friday, November 7th. 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.com, First Advantage has an average rating of “Hold” and an average target price of $18.25.

First Advantage Price Performance

NYSE FA traded down $0.33 on Friday, hitting $11.36. The company had a trading volume of 1,187,766 shares, compared to its average volume of 984,652. 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 company’s fifty day moving average price is $13.23 and its 200-day moving average price is $14.21. The company has a market capitalization of $1.98 billion, a PE ratio of 382.57 and a beta of 1.17. First Advantage has a 12-month low of $8.82 and a 12-month high of $19.01.

First Advantage (NYSE:FA) last posted its quarterly earnings data on Thursday, February 26th. 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%. During the same quarter in the prior year, the business earned $0.18 EPS. The company’s revenue was up 36.8% on a year-over-year basis. First Advantage has set its FY 2026 guidance at 1.150-1.250 EPS. As a group, analysts predict that First Advantage will post 0.74 earnings per share for the current year.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in FA. Invesco Ltd. boosted its stake in shares of First Advantage by 10.8% in the 4th quarter. Invesco Ltd. now owns 139,192 shares of the company’s stock valued at $2,022,000 after buying an additional 13,554 shares during the period. Cat Rock Capital Management LP raised its holdings in First Advantage by 8.9% in the fourth quarter. Cat Rock Capital Management LP now owns 3,342,818 shares of the company’s stock valued at $48,571,000 after acquiring an additional 274,449 shares in the last quarter. Susquehanna Fundamental Investments LLC purchased a new position in First Advantage in the fourth quarter worth approximately $452,000. Palisade Capital Management LP lifted its stake in First Advantage by 4.7% in the fourth quarter. Palisade Capital Management LP now owns 1,765,111 shares of the company’s stock worth $25,647,000 after acquiring an additional 79,664 shares during the last quarter. Finally, Balyasny Asset Management L.P. acquired a new position in First Advantage during the 4th quarter worth approximately $773,000. Institutional investors and hedge funds own 94.91% of the company’s stock.

Key First Advantage News

Here are the key news stories impacting First Advantage this week:

• Positive Sentiment: Q4 results beat expectations — First Advantage reported $0.30 EPS vs. a $0.26 consensus and delivered ~36.8% year‑over‑year revenue growth, signaling solid underlying demand. This is the core driver behind initial bullish market reactions. First Advantage Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Company announced a $100M share buyback and set a 2026 revenue target of $1.625B–$1.70B while highlighting momentum in its digital identity business — moves that support cash return and long‑term growth narratives. First Advantage outlines $1.625B–$1.7B 2026 revenue target with new $100M buyback amid digital identity momentum
• Neutral Sentiment: FY‑2026 EPS guidance set to $1.15–$1.25 (company midpoint roughly in line with consensus) — the range reduces surprise risk but left some investors wanting clearer upside; guidance is neither a material beat nor a material miss. First Advantage Corporation 2025 Q4 – Results – Earnings Call Presentation
• Negative Sentiment: Shares fell despite the beat — reasons likely include a high valuation (P/E near 367), the stock trading below its 50‑ and 200‑day moving averages, and investor disappointment that buyback/guidance didn’t signal faster margin expansion or larger capital return. Intraday volatility and lower-than-average volume amplified the move down. Market coverage noted both the initial rally and subsequent pullback. Why are First Advantage (FA) shares soaring today?

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.