Zacks Research Upgrades First Advantage (NYSE:FA) to Strong-Buy

First Advantage (NYSE:FA) was upgraded by analysts at Zacks Research from a “hold” rating to a “strong-buy” rating in a note issued to investors on Monday,Zacks.com reports.

Other equities research analysts have also issued research reports about the company. Citigroup raised their price target on First Advantage from $18.00 to $22.00 and gave the stock a “neutral” rating in a research report on Monday. Barclays lifted their price target on shares of First Advantage from $20.00 to $30.00 and gave the company an “overweight” rating in a research note on Friday, August 7th. JPMorgan Chase & Co. raised their price objective on shares of First Advantage from $15.00 to $18.00 and gave the stock an “overweight” rating in a report on Friday, May 8th. Royal Bank Of Canada boosted their price objective on shares of First Advantage from $21.00 to $24.00 and gave the company a “sector perform” rating in a research report on Friday, August 7th. Finally, Needham & Company LLC raised shares of First Advantage from a “hold” rating to a “buy” rating and set a $28.00 target price for the company in a research note on Thursday, August 6th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $23.33.

First Advantage Stock Performance

Shares of NYSE:FA opened at $20.95 on Monday. The company has a current ratio of 3.85, a quick ratio of 3.85 and a debt-to-equity ratio of 0.61. First Advantage has a 1-year low of $8.82 and a 1-year high of $25.15. The stock has a market capitalization of $3.60 billion, a P/E ratio of 698.33 and a beta of 1.16. The business has a 50-day moving average price of $19.62 and a two-hundred day moving average price of $15.06.

First Advantage (NYSE:FA) last posted its quarterly earnings results on Thursday, August 6th. The company reported $0.35 earnings per share for the quarter, beating analysts’ consensus estimates of $0.29 by $0.06. First Advantage had a return on equity of 13.16% and a net margin of 0.65%.During the same period in the prior year, the company posted $0.27 EPS. The business’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. Equities analysts predict that First Advantage will post 0.74 earnings per share for the current year.

Insider Activity

In other First Advantage news, Director James Lindsey Clark sold 4,921 shares of the business’s stock in a transaction that occurred 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 owned 56,844 shares of the company’s stock, valued at $891,882.36. The trade was a 7.97% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 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 large investors have recently bought and sold shares of FA. BlackRock Inc. acquired a new position in shares of First Advantage in the 2nd quarter valued at about $217,748,000. Alliancebernstein L.P. grew its stake in First Advantage by 724.5% during the second quarter. Alliancebernstein L.P. now owns 5,256,511 shares of the company’s stock worth $87,311,000 after purchasing an additional 4,618,946 shares during the period. Bamco Inc. NY bought a new stake in First Advantage in the second quarter worth approximately $63,214,000. Palisade Capital Management LP bought a new stake in First Advantage in the second quarter worth approximately $14,533,000. Finally, Capital World Investors lifted its stake in First Advantage by 9.4% in the fourth quarter. Capital World Investors now owns 9,098,714 shares of the company’s stock valued at $132,204,000 after buying an additional 780,200 shares during the period. 94.91% of the stock is owned by institutional investors.

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.