First Advantage (NYSE:FA) Posts Earnings Results, Beats Expectations By $0.06 EPS

First Advantage (NYSE:FA) announced its quarterly earnings data on Thursday. The company reported $0.35 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.29 by $0.06, Briefing.com reports. First Advantage had a net margin of 0.65% and a return on equity of 13.16%. The firm’s quarterly revenue was up 14.9% compared to the same quarter last year. During the same period in the previous year, the business posted $0.27 earnings per share. First Advantage updated its FY 2026 guidance to 1.23-1.290 EPS.

First Advantage Stock Performance

First Advantage stock traded up $3.56 during mid-day trading on Thursday, reaching $24.12. 4,725,725 shares of the stock traded hands, compared to its average volume of 1,398,402. First Advantage has a 12-month low of $8.82 and a 12-month high of $24.58. The business’s 50-day moving average is $18.70 and its 200-day moving average is $14.62. 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 $4.14 billion, a PE ratio of 804.00 and a beta of 1.16.

Insider Activity

In related news, Director James Lindsey Clark sold 4,921 shares of First Advantage stock in a transaction on Monday, June 8th. The stock was sold at an average price of $15.69, for a total transaction of $77,210.49. Following the transaction, the director directly owned 56,844 shares in the company, valued at approximately $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 Securities & Exchange Commission, which is accessible through 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 have recently added to or reduced their stakes in the stock. Quantbot Technologies LP purchased a new position in shares of First Advantage in the second quarter valued at $81,000. BNP Paribas Financial Markets lifted its position in First Advantage by 105.7% during the second quarter. BNP Paribas Financial Markets now owns 7,166 shares of the company’s stock valued at $119,000 after purchasing an additional 3,682 shares during the last quarter. Tower Research Capital LLC TRC grew its stake in shares of First Advantage by 503.2% in the 2nd quarter. Tower Research Capital LLC TRC now owns 7,932 shares of the company’s stock worth $132,000 after buying an additional 6,617 shares in the last quarter. Occudo Quantitative Strategies LP purchased a new position in shares of First Advantage in the 3rd quarter worth $163,000. Finally, Prudential Financial Inc. bought a new stake in shares of First Advantage in the 2nd quarter worth about $167,000. 94.91% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several analysts have issued reports on the stock. Needham & Company LLC upgraded shares of First Advantage from a “hold” rating to a “buy” rating and set a $28.00 price target for the company in a research report on Thursday. Royal Bank Of Canada boosted their price target on shares of First Advantage from $17.00 to $21.00 and gave the company a “sector perform” rating in a research report on Monday. Stifel Nicolaus set a $18.00 price target on shares of First Advantage in a research note on Friday, May 8th. Citigroup raised their price objective on shares of First Advantage from $15.00 to $18.00 and gave the stock a “neutral” rating in a report on Monday, May 11th. Finally, JPMorgan Chase & Co. upped their price target on First Advantage from $15.00 to $18.00 and gave the stock an “overweight” rating in a research note on Friday, May 8th. Three equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $20.50.

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.