First Advantage (NYSE:FA) Shares Gap Down – Here’s What Happened

First Advantage Co. (NYSE:FA) gapped down before the market opened on Tuesday . The stock had previously closed at $23.59, but opened at $21.14. First Advantage shares last traded at $21.0370, with a volume of 2,322,519 shares trading hands.

Wall Street Analyst Weigh In

FA has been the topic of several research analyst reports. Royal Bank Of Canada raised their target price on shares of First Advantage from $21.00 to $24.00 and gave the stock a “sector perform” rating in a research report on Friday. Stifel Nicolaus set a $18.00 price target on shares of First Advantage in a research note on Friday, May 8th. JPMorgan Chase & Co. lifted 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. Needham & Company LLC raised shares of First Advantage from a “hold” rating to a “buy” rating and set a $28.00 price objective for the company in a research note on Thursday, August 6th. Finally, Barclays upped their price objective on First Advantage from $20.00 to $30.00 and gave the stock an “overweight” rating in a report on Friday. Three analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, First Advantage has an average rating of “Moderate Buy” and a consensus price target of $22.67.

First Advantage Trading Down 10.3%

The firm has a market cap of $3.63 billion, a P/E ratio of 704.97 and a beta of 1.16. The business’s 50-day moving average is $18.99 and its two-hundred day moving average is $14.75. The company has a current ratio of 3.85, a quick ratio of 3.85 and a debt-to-equity ratio of 0.61.

First Advantage (NYSE:FA) last issued its earnings results on Thursday, August 6th. The company reported $0.35 earnings per share (EPS) for the quarter, topping 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%. During the same period in the previous year, the company earned $0.27 EPS. The firm’s quarterly revenue was up 14.9% on a year-over-year basis. First Advantage has set its FY 2026 guidance at 1.23-1.290 EPS. As a group, analysts expect that First Advantage Co. will post 0.74 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director James Lindsey Clark sold 4,921 shares of the firm’s stock in a transaction that occurred 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 approximately $891,882.36. This trade represents a 7.97% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 4.40% of the company’s stock.

Institutional Investors Weigh In On First Advantage

A number of institutional investors and hedge funds have recently modified their holdings of FA. KBC Group NV acquired a new position in shares of First Advantage in the 1st quarter worth $35,000. Versant Capital Management Inc lifted its holdings in shares of First Advantage by 47.1% during the second quarter. Versant Capital Management Inc now owns 2,445 shares of the company’s stock valued at $44,000 after purchasing an additional 783 shares during the last quarter. Fifth Third Bancorp purchased a new stake in shares of First Advantage during the first quarter valued at $45,000. Clearstead Advisors LLC boosted its position in shares of First Advantage by 192.8% in the 4th quarter. Clearstead Advisors LLC now owns 4,333 shares of the company’s stock valued at $63,000 after purchasing an additional 2,853 shares during the period. Finally, State of Wyoming acquired 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.