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In a recent transaction disclosed through an SEC filing, Bret T. Jardine, Chief Legal Officer at First Advantage Corp (NASDAQ:FA), sold a portion of his holdings in the company. The transaction, dated March 5, 2025, involved the sale of 139 shares of common stock at a price of $13.78 per share, totaling approximately $1,915. The sale comes as First Advantage, currently valued at $2.34 billion, trades near its 52-week low of $13.20, having declined about 14% in the past week. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value assessment.
Following this sale, Jardine retains ownership of 6,132 shares in the company. The sale was executed under a Rule 10b5-1 trading plan, which Jardine adopted on August 16, 2024. This type of trading plan allows corporate insiders to set up a predetermined schedule for selling company stock, helping to avoid potential conflicts of interest or accusations of insider trading. While the company maintains strong liquidity with a current ratio of 1.9, InvestingPro subscribers can access detailed insider trading patterns and 14 additional ProTips to make more informed investment decisions.
In other recent news, First Advantage Corporation reported its fourth-quarter earnings, which did not meet analyst expectations, posting adjusted earnings per share of $0.18 compared to the consensus of $0.23. Revenue, however, surpassed estimates slightly, reaching $307.1 million, up 51.6% year-over-year. The company also provided guidance for fiscal year 2025, projecting adjusted earnings per share between $0.86 and $1.03, falling short of the $0.98 consensus, and revenue between $1.5 billion and $1.6 billion, below the $1.57 billion expected by analysts. Following these developments, Jefferies lowered its price target for First Advantage to $13, maintaining a Hold rating, while BMO Capital Markets adjusted its target to $22, retaining an Outperform rating. Stifel also revised its target to $20, maintaining a Buy rating, suggesting confidence in the company’s long-term potential despite current challenges. The company cited a challenging macroeconomic environment and ongoing headwinds in its base business as factors influencing its cautious outlook. First Advantage has increased its synergy target related to the acquisition of Sterling, aiming for $60 million to $70 million in cost synergies. The company remains focused on integration, customer continuity, and reducing net leverage moving forward.
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