Needham & Company LLC Upgrades First Advantage (NYSE:FA) to Buy

First Advantage (NYSE:FA) was upgraded by equities researchers at Needham & Company LLC from a “hold” rating to a “buy” rating in a report issued on Thursday, Marketbeat reports. The firm currently has a $28.00 price target on the stock. Needham & Company LLC’s target price indicates a potential upside of 19.76% from the company’s current price.

FA has been the topic of a number of other research reports. Citigroup lifted their price target on First Advantage from $15.00 to $18.00 and gave the stock a “neutral” rating in a research note on Monday, May 11th. Stifel Nicolaus set a $18.00 price objective on shares of First Advantage in a research note on Friday, May 8th. JPMorgan Chase & Co. lifted their price objective on shares of First Advantage from $15.00 to $18.00 and gave the stock an “overweight” rating in a research report on Friday, May 8th. Barclays increased their target price on shares of First Advantage from $15.00 to $20.00 and gave the stock an “overweight” rating in a research report on Friday, May 8th. Finally, Royal Bank Of Canada upped their target price on First Advantage from $17.00 to $21.00 and gave the stock a “sector perform” rating in a research report on Monday. Three investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, First Advantage has an average rating of “Moderate Buy” and a consensus target price of $20.50.

First Advantage Stock Performance

FA stock traded up $2.82 during trading on Thursday, reaching $23.38. 1,907,538 shares of the company’s stock were exchanged, compared to its average volume of 1,379,488. First Advantage has a 1-year low of $8.82 and a 1-year high of $23.03. The firm has a market cap of $4.01 billion, a PE ratio of 777.13 and a beta of 1.17. The company’s fifty day moving average price is $18.54 and its 200-day moving average price is $14.56. 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 issued its quarterly 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 return on equity of 13.16% and a net margin of 0.65%.During the same quarter in the previous year, the firm posted $0.27 EPS. The company’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, research analysts expect that First Advantage will post 0.74 EPS for the current fiscal year.

Insider Transactions at First Advantage

In other news, Director James Lindsey Clark sold 4,921 shares of the stock in a transaction on Monday, June 8th. The stock was sold at an average price of $15.69, for a total value of $77,210.49. Following the transaction, the director owned 56,844 shares of the company’s stock, valued at $891,882.36. This represents a 7.97% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 4.40% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the stock. KBC Group NV bought a new stake in shares of First Advantage during the first quarter worth $35,000. Versant Capital Management Inc grew its holdings in First Advantage by 47.1% in the 2nd quarter. Versant Capital Management Inc now owns 2,445 shares of the company’s stock valued at $44,000 after buying an additional 783 shares in the last quarter. Fifth Third Bancorp acquired a new stake in shares of First Advantage in the 1st quarter worth $45,000. Clearstead Advisors LLC boosted its position in shares of First Advantage by 192.8% during the 4th quarter. Clearstead Advisors LLC now owns 4,333 shares of the company’s stock valued at $63,000 after acquiring an additional 2,853 shares during the last quarter. Finally, State of Wyoming acquired a new position in First Advantage in the 2nd quarter valued at about $81,000. 94.91% of the stock is owned by hedge funds and other institutional investors.

About First Advantage

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.