First Advantage (NYSE:FA) Announces Quarterly Earnings Results, Beats Estimates By $0.04 EPS

First Advantage (NYSE:FA) issued its quarterly earnings data on Thursday. The company reported $0.30 EPS for the quarter, topping analysts’ consensus estimates of $0.26 by $0.04, Briefing.com reports. First Advantage had a net margin of 0.65% and a return on equity of 13.16%. During the same period in the prior year, the business earned $0.18 earnings per share. The firm’s revenue was up 36.8% on a year-over-year basis. First Advantage updated its FY 2026 guidance to 1.150-1.250 EPS.

First Advantage Stock Performance

NYSE:FA traded up $1.95 during midday trading on Thursday, hitting $11.47. The company’s stock had a trading volume of 2,901,819 shares, compared to its average volume of 947,703. First Advantage has a fifty-two week low of $8.82 and a fifty-two week high of $19.01. The company has a debt-to-equity ratio of 0.61, a current ratio of 3.85 and a quick ratio of 3.85. The firm has a market cap of $2.00 billion, a P/E ratio of 384.33 and a beta of 1.17. The firm’s 50 day moving average is $13.30 and its 200-day moving average is $14.23.

Institutional Trading of First Advantage

Hedge funds and other institutional investors have recently made changes to their positions in the business. Quantbot Technologies LP acquired a new position in First Advantage during the second quarter valued at $81,000. BNP Paribas Financial Markets lifted its holdings in shares of First Advantage by 105.7% in the 2nd quarter. BNP Paribas Financial Markets now owns 7,166 shares of the company’s stock valued at $119,000 after buying an additional 3,682 shares during the period. Tower Research Capital LLC TRC boosted its stake in shares of First Advantage by 503.2% in the second quarter. Tower Research Capital LLC TRC now owns 7,932 shares of the company’s stock worth $132,000 after buying an additional 6,617 shares during the last quarter. Prudential Financial Inc. acquired a new stake in First Advantage during the second quarter worth about $167,000. Finally, Occudo Quantitative Strategies LP acquired a new stake in shares of First Advantage during the 3rd quarter worth approximately $163,000. Institutional investors and hedge funds own 94.91% of the company’s stock.

Analysts Set New Price Targets

FA has been the topic of several analyst reports. Zacks Research lowered First Advantage from a “strong-buy” rating to a “hold” rating in a research note on Monday, January 5th. JPMorgan Chase & Co. cut their price objective on shares of First Advantage from $21.00 to $17.00 and set an “overweight” rating on the stock in a research report on Friday, November 7th. Three equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $19.25.

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.