First Advantage (NYSE:FA) Raised to Buy at Needham & Company LLC

First Advantage (NYSE:FA) was upgraded by equities research analysts at Needham & Company LLC from a “hold” rating to a “buy” rating in a research note issued on Thursday, Marketbeat Ratings reports. The firm presently has a $28.00 price objective on the stock. Needham & Company LLC’s price objective would indicate a potential upside of 19.76% from the company’s previous close.

FA has been the topic of several other research reports. Royal Bank Of Canada increased their target price on First Advantage from $17.00 to $21.00 and gave the company a “sector perform” rating in a report on Monday. Citigroup lifted their target price on shares of First Advantage from $15.00 to $18.00 and gave the company a “neutral” rating in a report on Monday, May 11th. JPMorgan Chase & Co. lifted their price objective on shares of First Advantage from $15.00 to $18.00 and gave the company an “overweight” rating in a research note on Friday, May 8th. Barclays boosted their price target on First Advantage from $15.00 to $20.00 and gave the company an “overweight” rating in a research report on Friday, May 8th. Finally, Stifel Nicolaus set a $18.00 target price on shares of First Advantage in a research note on Friday, May 8th. Three investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $20.50.

First Advantage Stock Up 13.7%

Shares of FA stock traded up $2.82 during trading hours on Thursday, reaching $23.38. 1,907,538 shares of the stock were exchanged, compared to its average volume of 1,379,488. The business’s fifty day moving average is $18.54 and its two-hundred day moving average is $14.56. The company has a debt-to-equity ratio of 0.61, a current ratio of 3.85 and a quick ratio of 3.85. First Advantage has a 12-month low of $8.82 and a 12-month high of $23.03. The firm has a market capitalization of $4.01 billion, a P/E ratio of 777.13 and a beta of 1.17.

First Advantage (NYSE:FA) last posted its quarterly earnings results on Thursday, August 6th. The company reported $0.35 EPS for the quarter, topping 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 in the previous year, the firm posted $0.27 earnings per share. The firm’s revenue for the quarter 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, research analysts expect that First Advantage will post 0.74 EPS for the current fiscal year.

Insider Transactions at First Advantage

In related news, Director James Lindsey Clark sold 4,921 shares of the stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $15.69, for a total value of $77,210.49. Following the completion of the transaction, the director owned 56,844 shares of the company’s stock, valued at approximately $891,882.36. This represents a 7.97% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 4.40% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Alliancebernstein L.P. raised its stake in First Advantage by 724.5% during the 2nd quarter. Alliancebernstein L.P. now owns 5,256,511 shares of the company’s stock valued at $87,311,000 after acquiring an additional 4,618,946 shares in the last quarter. Capital World Investors grew its stake in shares of First Advantage by 9.4% in the fourth quarter. Capital World Investors now owns 9,098,714 shares of the company’s stock worth $132,204,000 after purchasing an additional 780,200 shares in the last quarter. Price T Rowe Associates Inc. MD grew 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 worth $202,757,000 after purchasing an additional 572,580 shares in the last quarter. Estuary Capital Management LP acquired a new position in shares of First Advantage during the first quarter valued at $6,558,000. Finally, Jane Street Group LLC acquired a new position in shares of First Advantage during the second quarter valued at $7,107,000. 94.91% of the stock is owned by institutional investors and hedge funds.

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.