First Advantage (NYSE:FA) Reaches New 1-Year High – Still a Buy?

Shares of First Advantage Co. (NYSE:FA) reached a new 52-week high during trading on Wednesday . The stock traded as high as $18.70 and last traded at $18.7350, with a volume of 242672 shares changing hands. The stock had previously closed at $18.05.

Analysts Set New Price Targets

FA has been the topic of a number of analyst reports. Stifel Nicolaus set a $18.00 price objective on shares of First Advantage in a research report on Friday, May 8th. JPMorgan Chase & Co. increased their target price on shares of First Advantage from $15.00 to $18.00 and gave the company an “overweight” rating in a research report on Friday, May 8th. Barclays lifted their price target 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, Citigroup upped their price target on First Advantage from $15.00 to $18.00 and gave the stock a “neutral” rating in a research report on Monday, May 11th. Two investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus 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 current ratio of 3.85 and a quick ratio of 3.85. The firm has a market cap of $3.21 billion, a price-to-earnings ratio of 625.33 and a beta of 1.19. The firm has a fifty day simple moving average of $15.31 and a two-hundred day simple moving average of $13.56.

First Advantage (NYSE:FA) last posted 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 prior year, the company earned $0.17 EPS. The company’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. On average, analysts expect that First Advantage Co. will post 0.74 EPS for the current year.

Insider Activity at First Advantage

In other First Advantage news, Director James Lindsey Clark sold 4,921 shares of the business’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 sale, the director owned 56,844 shares of the company’s stock, valued at approximately $891,882.36. The trade was a 7.97% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, 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 transaction of $350,010.00. Following the sale, the president owned 19,393 shares of the company’s stock, valued at $290,895. The trade was a 54.61% decrease in their ownership of the stock. 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 insiders.

Institutional Trading of First Advantage

Large investors have recently added to or reduced their stakes in the company. KBC Group NV purchased a new stake in First Advantage during the 1st quarter valued at about $35,000. Fifth Third Bancorp acquired a new stake in shares of First Advantage during the first quarter worth about $45,000. Clearstead Advisors LLC boosted its position in First Advantage by 192.8% in the fourth quarter. Clearstead Advisors LLC now owns 4,333 shares of the company’s stock valued at $63,000 after buying an additional 2,853 shares during the last quarter. Quantbot Technologies LP purchased a new stake in First Advantage in the second quarter valued at approximately $81,000. Finally, BNP Paribas Financial Markets increased its holdings in First Advantage by 105.7% in the 2nd quarter. BNP Paribas Financial Markets now owns 7,166 shares of the company’s stock worth $119,000 after buying an additional 3,682 shares during the period. 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.