First Advantage (NYSE:FA) Releases Quarterly Earnings Results

First Advantage (NYSE:FA) released its quarterly earnings results on Thursday. The company reported $0.26 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.21 by $0.05, Briefing.com reports. First Advantage had a net margin of 0.65% and a return on equity of 13.16%. During the same quarter in the previous year, the company posted $0.17 EPS. First Advantage’s quarterly revenue was up 8.6% compared to the same quarter last year. First Advantage updated its FY 2026 guidance to 1.150-1.250 EPS.

First Advantage Trading Up 1.3%

Shares of FA traded up $0.20 during mid-day trading on Friday, hitting $15.96. The company had a trading volume of 1,987,760 shares, compared to its average volume of 1,153,215. The business’s 50-day simple moving average is $11.75 and its 200-day simple moving average is $12.89. The company has a quick ratio of 3.85, a current ratio of 3.85 and a debt-to-equity ratio of 0.61. First Advantage has a 1-year low of $8.82 and a 1-year high of $19.01. The stock has a market cap of $2.75 billion, a PE ratio of 532.00 and a beta of 1.13.

Insider Activity

In other First Advantage news, President Joelle M. Smith sold 23,334 shares of First Advantage stock in a transaction that occurred on Thursday, May 7th. The shares were sold at an average price of $15.00, for a total transaction of $350,010.00. Following the transaction, the president directly owned 19,393 shares of the company’s stock, valued at $290,895. The trade was a 54.61% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 4.40% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Quantbot Technologies LP acquired a new position in First Advantage during the second quarter valued at approximately $81,000. BNP Paribas Financial Markets lifted 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 valued at $119,000 after buying an additional 3,682 shares in the last quarter. Tower Research Capital LLC TRC lifted its position in First Advantage by 503.2% during the second quarter. Tower Research Capital LLC TRC now owns 7,932 shares of the company’s stock valued at $132,000 after buying an additional 6,617 shares in the last quarter. Prudential Financial Inc. acquired a new position in First Advantage during the second quarter valued at approximately $167,000. Finally, Occudo Quantitative Strategies LP acquired a new position in First Advantage during the third quarter valued at approximately $163,000. 94.91% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several research firms have issued reports on FA. Barclays raised their price target on shares of First Advantage from $15.00 to $20.00 and gave the stock an “overweight” rating in a research note on Friday. JPMorgan Chase & Co. raised their target price on shares of First Advantage from $15.00 to $18.00 and gave the stock an “overweight” rating in a research report on Friday. Stifel Nicolaus set a $18.00 target price on shares of First Advantage in a research report on Friday. Finally, Citigroup decreased their target price on shares of First Advantage from $16.00 to $15.00 and set a “neutral” rating on the stock in a research report on Friday, March 6th. Two investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, First Advantage presently has a consensus rating of “Hold” and a consensus target price of $17.75.

First Advantage News Summary

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

• Positive Sentiment: First Advantage delivered Q1 adjusted EPS of $0.26, topping estimates of $0.21, while revenue rose 8.6% year over year to $385.2 million and adjusted EBITDA increased 14.3%. First Advantage Reports First Quarter 2026 Results
• Positive Sentiment: Management reaffirmed its 2026 outlook and expects margin expansion in the second half, which suggests improving profitability and execution. First Advantage reaffirms 2026 outlook while expecting adjusted EBITDA margins around 29% in 2H
• Positive Sentiment: JPMorgan raised its price target on First Advantage to $18 from $15 and reiterated an overweight rating, implying further upside from current levels. Benzinga report on JPMorgan price target increase
• Neutral Sentiment: First Advantage said its management team will participate in upcoming investor conferences, which could help keep the stock in focus but does not change fundamentals on its own. First Advantage to Participate in Upcoming Investor Conferences
• Neutral Sentiment: The company’s FY 2026 guidance was reaffirmed rather than raised, and revenue guidance remains roughly in line with expectations, which tempers the near-term excitement. First Advantage keeps 2026 guidance, sees margin lift to 29%

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.