First Advantage (NYSE:FA) Sees Unusually-High Trading Volume Following Earnings Beat

Shares of First Advantage Co. (NYSE:FA) saw unusually-high trading volume on Friday following a better than expected earnings announcement. Approximately 1,602,999 shares traded hands during trading, an increase of 62% from the previous session’s volume of 992,364 shares.The stock last traded at $11.4020 and had previously closed at $11.69.

The company reported $0.30 earnings per share for the quarter, topping the consensus estimate of $0.26 by $0.04. First Advantage had a net margin of 0.65% and a return on equity of 13.16%. During the same quarter in the prior year, the firm posted $0.18 EPS. The business’s revenue was up 36.8% compared to the same quarter last year. First Advantage has set its FY 2026 guidance at 1.150-1.250 EPS.

Trending Headlines about First Advantage

Here are the key news stories impacting First Advantage this week:

• Positive Sentiment: Q4 earnings beat — First Advantage reported $0.30 EPS vs. consensus $0.26 and revenue grew ~36.8% year-over-year, signaling strong topline momentum and margin improvement. Read More.
• Positive Sentiment: $100M buyback and raised revenue ambition — Management outlined a $1.625B–$1.7B 2026 revenue target and authorized a $100M share buyback, which can support EPS and investor sentiment amid the company’s digital-identity growth narrative. Read More.
• Neutral Sentiment: FY2026 EPS guidance roughly in line — First Advantage set FY26 EPS of $1.150–$1.250 versus a consensus near $1.170; revenue guidance roughly meets or slightly exceeds Street expectations, so guidance is not a major surprise. Read More.
• Neutral Sentiment: Full earnings materials available — Management commentary, the earnings presentation and transcript are posted (useful for investors wanting color on digital-identity growth, margin levers and buyback timing). Read More. Read More.
• Negative Sentiment: Barclays trims price target — Barclays cut its target from $18 to $14 and assigned an “equal weight” rating; while the new $14 target still implies upside vs. current levels, the cut signals more cautious near-term analyst sentiment. Read More.

Analysts Set New Price Targets

FA has been the subject of a number of research reports. Barclays lowered their price target on First Advantage from $18.00 to $14.00 and set an “equal weight” rating for the company in a research report on Friday. JPMorgan Chase & Co. reduced their price objective on First Advantage from $21.00 to $17.00 and set an “overweight” rating for the company in a research note on Friday, November 7th. Finally, Zacks Research lowered First Advantage from a “strong-buy” rating to a “hold” rating in a research report on Monday, January 5th. Two equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $18.25.

Hedge Funds Weigh In On First Advantage

Large investors have recently bought and sold shares of the business. Clearstead Advisors LLC boosted its position in First Advantage by 192.8% during the fourth quarter. Clearstead Advisors LLC now owns 4,333 shares of the company’s stock worth $63,000 after purchasing an additional 2,853 shares in the last quarter. Quantbot Technologies LP acquired a new position in shares of First Advantage during the 2nd quarter worth approximately $81,000. Parkside Financial Bank & Trust lifted its position in shares of First Advantage by 22.8% during the 2nd quarter. Parkside Financial Bank & Trust now owns 7,164 shares of the company’s stock valued at $119,000 after buying an additional 1,328 shares in the last quarter. BNP Paribas Financial Markets grew its stake in 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 acquiring an additional 3,682 shares during the period. Finally, Tower Research Capital LLC TRC increased its holdings in First Advantage by 503.2% in the 2nd quarter. Tower Research Capital LLC TRC now owns 7,932 shares of the company’s stock worth $132,000 after acquiring an additional 6,617 shares in the last quarter. Institutional investors and hedge funds own 94.91% of the company’s stock.

First Advantage Stock Performance

The company has a current ratio of 3.85, a quick ratio of 3.85 and a debt-to-equity ratio of 0.61. The firm’s fifty day moving average is $13.16 and its 200 day moving average is $14.19. The company has a market cap of $2.00 billion, a PE ratio of 383.67 and a beta of 1.17.

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.