First Advantage (NYSE:FA) Downgraded by Zacks Research to Hold

Zacks Research lowered shares of First Advantage (NYSE:FA) from a strong-buy rating to a hold rating in a report issued on Monday morning,Zacks.com reports.

Separately, JPMorgan Chase & Co. cut 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. Three analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, First Advantage has a consensus rating of “Hold” and an average target price of $19.25.

First Advantage Price Performance

NYSE:FA opened at $15.15 on Monday. First Advantage has a 52-week low of $11.95 and a 52-week high of $20.27. The company has a market cap of $2.64 billion, a P/E ratio of 504.83 and a beta of 1.18. 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’s 50-day simple moving average is $13.96 and its 200 day simple moving average is $15.37.

First Advantage (NYSE:FA) last released its earnings results on Thursday, November 6th. The company reported $0.30 earnings per share for the quarter, beating the consensus estimate of $0.28 by $0.02. First Advantage had a net margin of 0.65% and a return on equity of 13.16%. During the same period in the previous year, the firm earned $0.26 earnings per share. The firm’s revenue for the quarter was up 105.5% compared to the same quarter last year. First Advantage has set its FY 2025 guidance at 0.980-1.020 EPS. As a group, sell-side analysts forecast that First Advantage will post 0.74 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in FA. JPMorgan Chase & Co. raised its position in shares of First Advantage by 8.4% in the third quarter. JPMorgan Chase & Co. now owns 3,315,150 shares of the company’s stock valued at $51,020,000 after buying an additional 255,641 shares in the last quarter. Dark Forest Capital Management LP bought a new position in shares of First Advantage in the third quarter worth $523,000. Millennium Management LLC raised its stake in First Advantage by 368.2% in the third quarter. Millennium Management LLC now owns 300,594 shares of the company’s stock valued at $4,626,000 after purchasing an additional 236,396 shares in the last quarter. Cat Rock Capital Management LP lifted its position in First Advantage by 29.7% during the third quarter. Cat Rock Capital Management LP now owns 3,068,369 shares of the company’s stock worth $47,222,000 after purchasing an additional 702,452 shares during the period. Finally, Alliancebernstein L.P. grew its stake in First Advantage by 18.4% during the third quarter. Alliancebernstein L.P. now owns 6,225,825 shares of the company’s stock worth $95,815,000 after buying an additional 969,314 shares in the last quarter. 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.