First Advantage (NYSE:FA) Hits New 52-Week High on Strong Earnings

Shares of First Advantage Co. (NYSE:FA) reached a new 52-week high during trading on Tuesday following a stronger than expected earnings report. The stock traded as high as $20.79 and last traded at $18.90, with a volume of 197522 shares. The stock had previously closed at $18.57.

The company reported $0.26 earnings per share for the quarter, topping analysts’ consensus estimates of $0.25 by $0.01. The business had revenue of $199.10 million during the quarter, compared to the consensus estimate of $204.39 million. First Advantage had a net margin of 0.65% and a return on equity of 13.21%. The business’s quarterly revenue was down .6% compared to the same quarter last year. During the same quarter last year, the company earned $0.25 earnings per share.

Analyst Ratings Changes

A number of equities analysts have issued reports on the stock. Truist Financial cut their target price on shares of First Advantage from $250.00 to $249.00 and set a “buy” rating on the stock in a report on Monday, July 22nd. Wolfe Research lowered First Advantage from an “outperform” rating to a “peer perform” rating in a research report on Thursday, October 10th. Citigroup increased their target price on First Advantage from $19.00 to $21.00 and gave the stock a “neutral” rating in a research report on Wednesday, September 25th. William Blair reissued an “outperform” rating on shares of First Advantage in a report on Wednesday. Finally, Needham & Company LLC reaffirmed a “hold” rating on shares of First Advantage in a report on Wednesday. Three research analysts have rated the stock with a hold rating and four have given a buy rating to the stock. According to data from MarketBeat.com, First Advantage has a consensus rating of “Moderate Buy” and a consensus price target of $77.25.

Institutional Trading of First Advantage

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Capital Research Global Investors boosted its position in shares of First Advantage by 9.4% in the 1st quarter. Capital Research Global Investors now owns 5,777,481 shares of the company’s stock valued at $93,711,000 after purchasing an additional 496,898 shares during the period. FMR LLC lifted its stake in First Advantage by 50.8% during the third quarter. FMR LLC now owns 5,600,026 shares of the company’s stock valued at $111,161,000 after buying an additional 1,886,716 shares in the last quarter. Dimensional Fund Advisors LP boosted its holdings in shares of First Advantage by 8.8% in the second quarter. Dimensional Fund Advisors LP now owns 3,131,188 shares of the company’s stock worth $50,314,000 after buying an additional 254,219 shares during the period. Boston Partners increased its position in shares of First Advantage by 155.3% in the first quarter. Boston Partners now owns 1,713,935 shares of the company’s stock worth $27,841,000 after acquiring an additional 1,042,473 shares in the last quarter. Finally, Emerald Advisers LLC raised its holdings in shares of First Advantage by 2.1% during the third quarter. Emerald Advisers LLC now owns 1,183,050 shares of the company’s stock valued at $23,484,000 after acquiring an additional 24,217 shares during the period. 94.91% of the stock is owned by institutional investors and hedge funds.

First Advantage Trading Down 3.0 %

The company has a current ratio of 4.31, a quick ratio of 4.31 and a debt-to-equity ratio of 0.61. The firm has a market cap of $2.62 billion, a PE ratio of 600.67 and a beta of 1.18. The company’s 50-day moving average is $19.15 and its 200 day moving average is $17.61.

About First Advantage

First Advantage Corporation provides employment background screening, identity, and verification solutions worldwide. It offers pre-onboarding products and solutions, such as criminal background checks, drug/health screening, extended workforce screening, FBI channeling, identity checks and biometric fraud mitigation tools, education/work history verification, driver records and compliance, healthcare credentials, executive screening, and other screening products.