First Advantage (NYSE:FA) Sees Unusually-High Trading Volume on Better-Than-Expected Earnings

Shares of First Advantage Co. (NYSE:FA) saw strong trading volume on Friday after the company announced better than expected quarterly earnings. 1,602,999 shares changed hands during mid-day trading, an increase of 62% from the previous session’s volume of 992,364 shares.The stock last traded at $11.4020 and had previously closed at $11.69.

The company reported $0.30 earnings per share for the quarter, beating the consensus estimate of $0.26 by $0.04. 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 earned $0.18 earnings per share. The firm’s revenue was up 36.8% compared to the same quarter last year. First Advantage has set its FY 2026 guidance at 1.150-1.250 EPS.

Key Headlines Impacting First Advantage

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

• Positive Sentiment: Q4 results beat expectations — First Advantage reported $0.30 EPS vs. a $0.26 consensus and delivered ~36.8% year‑over‑year revenue growth, signaling solid underlying demand. This is the core driver behind initial bullish market reactions. First Advantage Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Company announced a $100M share buyback and set a 2026 revenue target of $1.625B–$1.70B while highlighting momentum in its digital identity business — moves that support cash return and long‑term growth narratives. First Advantage outlines $1.625B–$1.7B 2026 revenue target with new $100M buyback amid digital identity momentum
• Neutral Sentiment: FY‑2026 EPS guidance set to $1.15–$1.25 (company midpoint roughly in line with consensus) — the range reduces surprise risk but left some investors wanting clearer upside; guidance is neither a material beat nor a material miss. First Advantage Corporation 2025 Q4 – Results – Earnings Call Presentation
• Negative Sentiment: Shares fell despite the beat — reasons likely include a high valuation (P/E near 367), the stock trading below its 50‑ and 200‑day moving averages, and investor disappointment that buyback/guidance didn’t signal faster margin expansion or larger capital return. Intraday volatility and lower-than-average volume amplified the move down. Market coverage noted both the initial rally and subsequent pullback. Why are First Advantage (FA) shares soaring today?

Wall Street Analysts Forecast Growth

FA has been the topic of several recent research reports. Zacks Research cut shares of First Advantage from a “strong-buy” rating to a “hold” rating in a research report on Monday, January 5th. JPMorgan Chase & Co. decreased their price target on shares of First Advantage from $21.00 to $17.00 and set an “overweight” rating for the company in a research note on Friday, November 7th. Finally, Barclays reduced their price target on shares of First Advantage from $18.00 to $14.00 and set an “equal weight” rating for the company in a report on Friday. Three analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, First Advantage currently has an average rating of “Hold” and an average target price of $18.25.

Institutional Investors Weigh In On First Advantage

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Parkside Financial Bank & Trust grew its holdings in shares of First Advantage by 22.8% during the 2nd quarter. Parkside Financial Bank & Trust now owns 7,164 shares of the company’s stock worth $119,000 after purchasing an additional 1,328 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in First Advantage by 4.3% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 35,567 shares of the company’s stock worth $501,000 after buying an additional 1,471 shares during the period. Oppenheimer Asset Management Inc. increased its position in shares of First Advantage by 6.5% during the second quarter. Oppenheimer Asset Management Inc. now owns 26,425 shares of the company’s stock valued at $439,000 after acquiring an additional 1,614 shares during the last quarter. SG Americas Securities LLC raised its stake in shares of First Advantage by 22.6% in the 3rd quarter. SG Americas Securities LLC now owns 9,211 shares of the company’s stock valued at $142,000 after acquiring an additional 1,700 shares during the period. Finally, Ameritas Investment Partners Inc. boosted its position in shares of First Advantage by 29.1% during the 2nd quarter. Ameritas Investment Partners Inc. now owns 8,088 shares of the company’s stock worth $134,000 after purchasing an additional 1,821 shares during the period. Hedge funds and other institutional investors own 94.91% of the company’s stock.

First Advantage Price Performance

The stock has a market cap of $1.99 billion, a price-to-earnings ratio of 381.73 and a beta of 1.17. The company has a current ratio of 3.85, a quick ratio of 3.85 and a debt-to-equity ratio of 0.61. The company’s fifty day moving average is $13.23 and its two-hundred day moving average is $14.21.

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.