First Advantage (NYSE:FA) Rating Increased to Strong-Buy at Zacks Research

Zacks Research upgraded shares of First Advantage (NYSE:FA) from a hold rating to a strong-buy rating in a research report sent to investors on Monday morning,Zacks.com reports.

Several other brokerages have also issued reports on FA. Barclays raised their price target on shares of First Advantage from $20.00 to $30.00 and gave the stock an “overweight” rating in a research note on Friday, August 7th. 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. Stifel Nicolaus set a $18.00 target price on First Advantage in a research note on Friday, May 8th. JPMorgan Chase & Co. boosted their target price on First Advantage from $15.00 to $18.00 and gave the company an “overweight” rating in a research note on Friday, May 8th. Finally, Citigroup upped their price target on First Advantage from $18.00 to $22.00 and gave the stock a “neutral” rating in a research note on Monday. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $23.33.

First Advantage Trading Up 3.2%

NYSE FA opened at $20.95 on Monday. The business’s fifty day moving average is $19.62 and its 200-day moving average is $15.06. 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 stock has a market capitalization of $3.60 billion, a price-to-earnings ratio of 698.33 and a beta of 1.16. First Advantage has a one year low of $8.82 and a one year high of $25.15.

First Advantage (NYSE:FA) last posted its quarterly earnings results on Thursday, August 6th. The company reported $0.35 earnings per share for the quarter, beating the consensus estimate 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 quarter last year, the company earned $0.27 earnings per share. The business’s revenue for the quarter was up 14.9% compared to the same quarter last year. First Advantage has set its FY 2026 guidance at 1.23-1.290 EPS. Equities research analysts predict that First Advantage will post 0.74 EPS for the current year.

Insiders Place Their Bets

In related news, 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 transaction, the director directly owned 56,844 shares in the company, valued at $891,882.36. The trade was a 7.97% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 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 added to or reduced their stakes in the business. Price T Rowe Associates Inc. MD boosted its stake in shares of First Advantage by 4.3% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 13,954,320 shares of the company’s stock valued at $202,757,000 after purchasing an additional 572,580 shares during the period. BlackRock Inc. purchased a new stake in First Advantage during the 2nd quarter valued at approximately $217,748,000. Capital World Investors increased its stake in shares of First Advantage by 9.4% during the fourth quarter. Capital World Investors now owns 9,098,714 shares of the company’s stock worth $132,204,000 after acquiring an additional 780,200 shares during the period. Alliancebernstein L.P. lifted its holdings in First Advantage by 18.4% in the third quarter. Alliancebernstein L.P. now owns 6,225,825 shares of the company’s stock valued at $95,815,000 after acquiring an additional 969,314 shares during the period. Finally, Bamco Inc. NY purchased a new stake in shares of First Advantage during the 2nd quarter worth approximately $63,214,000. Hedge funds and other institutional investors own 94.91% of the company’s stock.

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.