First Advantage (NYSE:FA) Shares Gap Up – Here’s Why

Shares of First Advantage Co. (NYSE:FA) gapped up before the market opened on Friday. The stock had previously closed at $19.66, but opened at $21.08. First Advantage shares last traded at $21.0780, with a volume of 28,991 shares traded.

Analysts Set New Price Targets

Several equities research analysts recently commented on the company. Needham & Company LLC raised First Advantage from a “hold” rating to a “buy” rating and set a $28.00 price target for the company in a research note on Thursday, August 6th. Royal Bank Of Canada raised their target price on First Advantage from $21.00 to $24.00 and gave the company a “sector perform” rating in a report on Friday, August 7th. Citigroup boosted their price objective on shares of First Advantage from $18.00 to $22.00 and gave the stock a “neutral” rating in a report on Monday, August 17th. Barclays upped their target price on First Advantage from $20.00 to $30.00 and gave the company an “overweight” rating in a research note on Friday, August 7th. Finally, Zacks Research cut shares of First Advantage from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, October 6th. Three equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $23.33.

First Advantage Price Performance

The stock has a market capitalization of $3.64 billion, a P/E ratio of 710.83 and a beta of 1.12. The company has a debt-to-equity ratio of 0.61, a quick ratio of 3.85 and a current ratio of 3.85. The stock has a 50-day simple moving average of $20.09 and a 200 day simple moving average of $17.99.

First Advantage (NYSE:FA) last issued its earnings results on Thursday, August 6th. The company reported $0.35 earnings per share (EPS) for the quarter, beating 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 period last year, the firm posted $0.27 EPS. The firm’s revenue was up 14.9% compared to the same quarter last year. First Advantage has set its FY 2026 guidance at 1.23-1.290 EPS. On average, equities analysts forecast that First Advantage Co. will post 0.74 earnings per share for the current fiscal year.

Institutional Trading of First Advantage

Several hedge funds have recently added to or reduced their stakes in FA. BlackRock Inc. bought a new position in shares of First Advantage during the 2nd quarter valued at about $217,748,000. Bamco Inc. NY acquired a new stake in First Advantage in the 2nd quarter valued at $63,214,000. Sunriver Management LLC raised its holdings in First Advantage by 14.0% during the first quarter. Sunriver Management LLC now owns 3,032,711 shares of the company’s stock worth $35,665,000 after acquiring an additional 371,425 shares in the last quarter. Palisade Capital Management LP bought a new stake in shares of First Advantage during the 2nd quarter worth approximately $14,533,000. Finally, Leith Wheeler Investment Counsel Ltd. lifted its stake in First Advantage by 22.8% in the first quarter. Leith Wheeler Investment Counsel Ltd. now owns 728,332 shares of the company’s stock valued at $8,565,000 after acquiring an additional 135,418 shares during the last quarter. Institutional investors and hedge funds own 94.91% of the company’s stock.

About First Advantage

First Advantage Corporation (NYSE: FA) is a global human capital and background screening company that helps employers make informed hiring, onboarding and workforce-management decisions. Its technology and services are used by organizations across industries to assess candidates and support compliance throughout the employment lifecycle.

The company provides employment background checks, criminal-record searches, employment and education verification, identity services, drug and health screening, driving-record checks, international screening and continuous workforce monitoring.