First Advantage (NYSE:FA) Announces Quarterly Earnings Results, Beats Expectations By $0.04 EPS

First Advantage (NYSE:FA) announced its quarterly earnings results on Thursday. The company reported $0.30 earnings per share for the quarter, beating the consensus estimate of $0.26 by $0.04, Briefing.com reports. First Advantage had a return on equity of 13.16% and a net margin of 0.65%.During the same quarter in the previous year, the company earned $0.18 earnings per share. The business’s revenue for the quarter was up 36.8% compared to the same quarter last year. First Advantage updated its FY 2026 guidance to 1.150-1.250 EPS.

First Advantage Price Performance

FA traded up $2.17 during midday trading on Thursday, hitting $11.69. 4,002,415 shares of the company traded hands, compared to its average volume of 971,334. The business has a 50 day simple moving average of $13.30 and a two-hundred day simple moving average of $14.23. First Advantage has a 52-week low of $8.82 and a 52-week high of $19.01. The company has a market capitalization of $2.03 billion, a price-to-earnings ratio of 389.57 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.

Institutional Investors Weigh In On First Advantage

Several institutional investors have recently bought and sold shares of the company. Brighton Jones LLC acquired a new position in shares of First Advantage during the fourth quarter valued at approximately $257,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of 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 purchasing an additional 1,471 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in First Advantage by 7.5% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 239,233 shares of the company’s stock valued at $3,371,000 after purchasing an additional 16,664 shares during the last quarter. Prudential Financial Inc. purchased a new position in First Advantage in the 2nd quarter valued at $167,000. Finally, Russell Investments Group Ltd. boosted its stake in First Advantage by 627.7% during the 2nd quarter. Russell Investments Group Ltd. now owns 67,178 shares of the company’s stock worth $1,116,000 after purchasing an additional 57,946 shares during the last quarter. 94.91% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on the stock. JPMorgan Chase & Co. decreased their target price 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. Zacks Research cut shares of First Advantage from a “strong-buy” rating to a “hold” rating in a report on Monday, January 5th. Three research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $19.25.

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.