First Advantage (NYSE:FA) Hits New 12-Month High – Should You Buy?

Shares of First Advantage Co. (NYSE:FA) reached a new 52-week high during mid-day trading on Tuesday . The company traded as high as $20.99 and last traded at $20.97, with a volume of 453922 shares changing hands. The stock had previously closed at $20.58.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on FA. Barclays upped their price target on First Advantage from $15.00 to $20.00 and gave the stock an “overweight” rating in a report on Friday, May 8th. JPMorgan Chase & Co. boosted their target price on First Advantage from $15.00 to $18.00 and gave the stock an “overweight” rating in a research report on Friday, May 8th. Citigroup upped their target price on First Advantage from $15.00 to $18.00 and gave the company a “neutral” rating in a report on Monday, May 11th. Finally, Stifel Nicolaus set a $18.00 price target on First Advantage in a research report on Friday, May 8th. Two research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat, First Advantage has an average rating of “Hold” and a consensus target price of $18.50.

First Advantage Stock Performance

The company has a debt-to-equity ratio of 0.61, a quick ratio of 3.85 and a current ratio of 3.85. The firm has a market capitalization of $3.59 billion, a PE ratio of 697.97 and a beta of 1.17. The company’s fifty day moving average price is $16.60 and its two-hundred day moving average price is $13.88.

First Advantage (NYSE:FA) last announced its quarterly earnings data on Thursday, May 7th. The company reported $0.26 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.21 by $0.05. 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 firm posted $0.17 earnings per share. First Advantage’s quarterly revenue was up 8.6% compared to the same quarter last year. First Advantage has set its FY 2026 guidance at 1.150-1.250 EPS. As a group, equities analysts expect that First Advantage Co. will post 0.74 earnings per share for the current year.

Insiders Place Their Bets

In related news, President Joelle M. Smith sold 23,334 shares of First Advantage stock in a transaction on Thursday, May 7th. The stock was sold at an average price of $15.00, for a total value of $350,010.00. Following the transaction, the president owned 19,393 shares in the company, valued at approximately $290,895. This trade represents a 54.61% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director James Lindsey Clark sold 4,921 shares of the business’s stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $15.69, for a total value of $77,210.49. Following the sale, the director directly owned 56,844 shares of the company’s stock, valued at approximately $891,882.36. This trade represents a 7.97% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 4.40% of the stock is currently owned by company insiders.

Institutional Trading of First Advantage

Institutional investors and hedge funds have recently bought and sold shares of the business. Versant Capital Management Inc raised its holdings in First Advantage by 47.1% in the second quarter. Versant Capital Management Inc now owns 2,445 shares of the company’s stock valued at $44,000 after buying an additional 783 shares during the period. KBC Group NV purchased a new stake in First Advantage during the first quarter worth approximately $35,000. Fifth Third Bancorp acquired a new stake in shares of First Advantage in the first quarter worth $45,000. Clearstead Advisors LLC increased its position in shares of First Advantage by 192.8% in the fourth quarter. Clearstead Advisors LLC now owns 4,333 shares of the company’s stock worth $63,000 after acquiring an additional 2,853 shares in the last quarter. Finally, Quantbot Technologies LP purchased a new position in shares of First Advantage in the 2nd quarter valued at $81,000. Institutional investors and hedge funds own 94.91% of the company’s stock.

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.