First Advantage (NYSE:FA) Shares Up 18.5% Following Strong Earnings

First Advantage Co. (NYSE:FA) shot up 18.5% during mid-day trading on Thursday following a stronger than expected earnings report. The stock traded as high as $14.70 and last traded at $15.1670. 132,495 shares traded hands during trading, a decline of 88% from the average session volume of 1,103,894 shares. The stock had previously closed at $12.80.

The company reported $0.26 earnings per share for the quarter, beating 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 quarter in the previous year, the company earned $0.17 EPS. The company’s revenue for the quarter was up 8.6% compared to the same quarter last year. First Advantage has set its FY 2026 guidance at 1.150-1.250 EPS.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on FA. Barclays upgraded shares of First Advantage from an “equal weight” rating to an “overweight” rating and lifted their price objective for the company from $14.00 to $15.00 in a research note on Friday, March 6th. Citigroup dropped their price target on shares of First Advantage from $16.00 to $15.00 and set a “neutral” rating on the stock in a research report on Friday, March 6th. Two equities research 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 currently has an average rating of “Hold” and an average target price of $16.75.

Hedge Funds Weigh In On First Advantage

A number of institutional investors have recently bought and sold shares of the stock. Price T Rowe Associates Inc. MD increased its stake in First Advantage by 4.3% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 13,954,320 shares of the company’s stock worth $202,757,000 after purchasing an additional 572,580 shares in the last quarter. Capital World Investors increased its stake in First Advantage by 9.4% in the 4th quarter. Capital World Investors now owns 9,098,714 shares of the company’s stock worth $132,204,000 after purchasing an additional 780,200 shares in the last quarter. Vanguard Group Inc. increased its stake in First Advantage by 2.8% in the 3rd quarter. Vanguard Group Inc. now owns 7,613,968 shares of the company’s stock worth $117,179,000 after purchasing an additional 210,187 shares in the last quarter. Alliancebernstein L.P. increased its stake in First Advantage by 18.4% in the 3rd quarter. Alliancebernstein L.P. now owns 6,225,825 shares of the company’s stock worth $95,815,000 after purchasing an additional 969,314 shares in the last quarter. Finally, Cat Rock Capital Management LP increased 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. Hedge funds and other institutional investors own 94.91% of the company’s stock.

First Advantage Price Performance

The stock has a 50 day moving average of $11.62 and a two-hundred day moving average of $12.88. The stock has a market cap of $2.63 billion, a PE ratio of 510.73 and a beta of 1.13. The company has a debt-to-equity ratio of 0.61, a quick ratio of 3.85 and a current ratio of 3.85.

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.