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

Shares of First Advantage Co. (NYSE:FA) hit a new 52-week high during trading on Monday . The company traded as high as $22.78 and last traded at $22.2220, with a volume of 2050058 shares trading hands. The stock had previously closed at $22.35.

Wall Street Analyst Weigh In

Several research analysts recently weighed in on FA shares. Stifel Nicolaus set a $18.00 price objective on shares of First Advantage in a research note on Friday, May 8th. Citigroup upped their target price on shares of First Advantage from $15.00 to $18.00 and gave the company a “neutral” rating in a research note on Monday, May 11th. Barclays increased their target price on shares of First Advantage from $15.00 to $20.00 and gave the stock an “overweight” rating in a report on Friday, May 8th. Finally, JPMorgan Chase & Co. boosted their price target on shares of First Advantage from $15.00 to $18.00 and gave the company an “overweight” rating in a report on Friday, May 8th. Two investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $18.50.

First Advantage Price Performance

The company has a 50-day moving average of $17.43 and a 200-day moving average of $14.16. 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 $3.62 billion, a price-to-earnings ratio of 704.00 and a beta of 1.17.

First Advantage (NYSE:FA) last announced its earnings results on Thursday, May 7th. The company reported $0.26 EPS for the quarter, topping 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 prior year, the company posted $0.17 EPS. The firm’s quarterly revenue was up 8.6% on a year-over-year basis. First Advantage has set its FY 2026 guidance at 1.150-1.250 EPS. As a group, research analysts anticipate that First Advantage Co. will post 0.74 EPS for the current fiscal year.

Insider Buying and Selling at First Advantage

In related news, President Joelle M. Smith sold 23,334 shares of the firm’s stock in a transaction 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 sale, the president directly owned 19,393 shares in the company, valued at $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 SEC, which is available at this hyperlink. 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 on Monday, June 8th. The shares were sold at an average price of $15.69, for a total transaction of $77,210.49. Following the completion of the sale, the director directly owned 56,844 shares in the company, valued at $891,882.36. This represents a 7.97% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 4.40% of the stock is owned by corporate insiders.

Institutional Trading of First Advantage

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. SG Americas Securities LLC increased its position in shares of First Advantage by 8,338.6% in the fourth quarter. SG Americas Securities LLC now owns 777,275 shares of the company’s stock valued at $11,294,000 after acquiring an additional 768,064 shares during the last quarter. Brighton Jones LLC acquired a new position in First Advantage during the fourth quarter valued at approximately $257,000. BloombergSen Inc. boosted its position in First Advantage by 41.6% during the fourth quarter. BloombergSen Inc. now owns 377,216 shares of the company’s stock valued at $5,481,000 after purchasing an additional 110,892 shares during the last quarter. Leith Wheeler Investment Counsel Ltd. grew its stake in First Advantage by 22.8% in the first quarter. Leith Wheeler Investment Counsel Ltd. now owns 728,332 shares of the company’s stock valued at $8,565,000 after purchasing an additional 135,418 shares in the last quarter. Finally, Capital World Investors grew its stake in First Advantage by 9.4% in the fourth quarter. Capital World Investors now owns 9,098,714 shares of the company’s stock valued at $132,204,000 after purchasing an additional 780,200 shares in the last quarter. 94.91% of the stock is currently owned by institutional investors and hedge funds.

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.