First Advantage Sees Unusually Large Options Volume (NYSE:FA)

First Advantage Co. (NYSE:FA) saw unusually large options trading on Monday. Investors bought 6,131 call options on the company. This is an increase of approximately 47,062% compared to the average daily volume of 13 call options.

Insider Buying and Selling at First Advantage

In other First Advantage news, Director James Lindsey Clark sold 4,921 shares of the business’s stock in a transaction 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 transaction, the director directly 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, President Joelle M. Smith sold 23,334 shares of the firm’s stock in a transaction dated Thursday, May 7th. The stock was sold at an average price of $15.00, for a total transaction of $350,010.00. Following the completion of the sale, the president directly owned 19,393 shares of the company’s stock, valued at approximately $290,895. This represents a 54.61% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 4.40% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in FA. Price T Rowe Associates Inc. MD boosted its position in shares of First Advantage by 4.3% during 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 acquiring an additional 572,580 shares during the last quarter. Capital World Investors increased its holdings in First Advantage by 9.4% in the 4th quarter. Capital World Investors now owns 9,098,714 shares of the company’s stock valued at $132,204,000 after acquiring an additional 780,200 shares during the last quarter. Alliancebernstein L.P. increased its holdings in First Advantage by 18.4% in the 3rd quarter. Alliancebernstein L.P. now owns 6,225,825 shares of the company’s stock valued at $95,815,000 after acquiring an additional 969,314 shares during the last quarter. Cat Rock Capital Management LP lifted its stake in First Advantage by 8.9% in the 4th quarter. Cat Rock Capital Management LP now owns 3,342,818 shares of the company’s stock worth $48,571,000 after purchasing an additional 274,449 shares in the last quarter. Finally, JPMorgan Chase & Co. boosted its holdings in shares of First Advantage by 8.4% during the 3rd quarter. JPMorgan Chase & Co. now owns 3,315,150 shares of the company’s stock valued at $51,020,000 after purchasing an additional 255,641 shares during the last quarter. 94.91% of the stock is currently owned by institutional investors.

First Advantage Stock Up 5.6%

Shares of First Advantage stock traded up $1.08 on Monday, reaching $20.62. The company’s stock had a trading volume of 889,968 shares, compared to its average volume of 1,303,767. The company has a market capitalization of $3.54 billion, a price-to-earnings ratio of 687.50 and a beta of 1.17. The firm’s fifty day simple moving average is $16.44 and its two-hundred day simple moving average is $13.84. First Advantage has a 52 week low of $8.82 and a 52 week high of $20.97. The company has a quick ratio of 3.85, a current ratio of 3.85 and a debt-to-equity ratio of 0.61.

First Advantage (NYSE:FA) last announced its quarterly earnings results on Thursday, May 7th. The company reported $0.26 EPS for the quarter, topping analysts’ consensus estimates 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 period last year, the firm earned $0.17 earnings per share. First Advantage’s revenue for the quarter was up 8.6% on a year-over-year basis. First Advantage has set its FY 2026 guidance at 1.150-1.250 EPS. Equities analysts anticipate that First Advantage will post 0.74 earnings per share for the current year.

Analyst Ratings Changes

Several brokerages recently issued reports on FA. Barclays increased their price target on shares of First Advantage from $15.00 to $20.00 and gave the stock an “overweight” rating in a research note on Friday, May 8th. Stifel Nicolaus set a $18.00 price objective on shares of First Advantage in a report on Friday, May 8th. 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. Finally, JPMorgan Chase & Co. boosted their price target on First Advantage from $15.00 to $18.00 and gave the stock an “overweight” rating in a research report on Friday, May 8th. Two research 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 company has a consensus rating of “Hold” and a consensus price target of $18.50.

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.