First Advantage (NYSE:FA) Shares Gap Down – Should You Sell?

First Advantage Co. (NYSE:FA) shares gapped down prior to trading on Wednesday . The stock had previously closed at $13.70, but opened at $12.68. First Advantage shares last traded at $12.3850, with a volume of 4,815 shares.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on FA. JPMorgan Chase & Co. dropped 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 note on Friday, November 7th. Zacks Research downgraded shares of First Advantage from a “strong-buy” rating to a “hold” rating in a report on Monday, January 5th. Three investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $19.25.

First Advantage Price Performance

The company has a 50-day moving average of $14.48 and a 200 day moving average of $15.00. The company has a quick ratio of 3.85, a current ratio of 3.85 and a debt-to-equity ratio of 0.61. The stock has a market capitalization of $2.30 billion, a PE ratio of 440.33 and a beta of 1.17.

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

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of FA. Olstein Capital Management L.P. raised its position in First Advantage by 4.2% in the 4th quarter. Olstein Capital Management L.P. now owns 74,000 shares of the company’s stock valued at $1,075,000 after purchasing an additional 3,000 shares in the last quarter. Van Berkom & Associates Inc. increased its stake in shares of First Advantage by 12.9% during the fourth quarter. Van Berkom & Associates Inc. now owns 96,263 shares of the company’s stock worth $1,399,000 after buying an additional 11,030 shares during the period. Inscription Capital LLC acquired a new stake in First Advantage in the fourth quarter valued at approximately $168,000. SG Americas Securities LLC lifted its stake in First Advantage by 8,338.6% in the fourth quarter. SG Americas Securities LLC now owns 777,275 shares of the company’s stock worth $11,294,000 after acquiring an additional 768,064 shares during the last quarter. Finally, JPMorgan Chase & Co. grew its holdings in First Advantage by 8.4% during the 3rd quarter. JPMorgan Chase & Co. now owns 3,315,150 shares of the company’s stock worth $51,020,000 after acquiring an additional 255,641 shares in the last quarter. 94.91% of the stock is owned by institutional investors and hedge funds.

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.