Cortland Associates Ditches First Advantage Shares in $5.6 Million Sale, According to Recent Filing

On January 28, 2026, Cortland Associates reported selling 399,384 shares of First Advantage (NASDAQ:FA), an estimated $5.63 million transaction based on quarterly average pricing.

What Happened

According to a January 28, 2026, SEC filing, Cortland Associates reduced its stake in First Advantage by 399,384 shares, with an estimated transaction value of $5.63 million based on the average closing price during the quarter. The fund reported 935,704 shares remaining at quarter end. The overall position value declined by $6.95 million since the prior filing, a figure that includes both the share sale and price fluctuations.

What Else to Know

Following the sale, First Advantage represents 1.72% of Cortland Associates' 13F reportable AUM.

Top holdings after the filing:

• NASDAQ: GOOGL: $74.69 million (9.6% of AUM)
• NASDAQ: WTW: $61.40 million (7.9% of AUM)
• NYSE: V: $58.72 million (7.6% of AUM)
• NYSE: KD: $55.28 million (7.0% of AUM)
• NASDAQ: BKNG: $54.02 million (6.8% of AUM)

As of January 27, 2026, shares were priced at $13.43, down 29.1% over twelve months; shares have underperformed the S&P 500 by 45.1 percentage points.

Company Overview

Company Snapshot

• Offers technology-driven screening, verification, and compliance solutions, including background checks, drug and health screening, identity verification, and post-onboarding monitoring services.
• Serves global enterprises, mid-sized, and small businesses with a focus on recruiting, HR, compliance, risk management, and safety functions.
• Leverages advanced data analytics and automation to deliver background verification and risk management services for employers across industries.

First Advantage Corporation is a leading provider of technology solutions for human capital screening and compliance, operating at global scale with a comprehensive product portfolio. Its competitive edge lies in its broad solution set, strong client relationships, and ability to address complex regulatory and compliance needs in hiring and workforce management.

What This Transaction Means For Investors

Cortland Associates, an independent investment management firm, recently disclosed a sale of approximately $5.6 million of First Advantage stock during the fourth quarter (the three months ending on Dec. 31, 2025). Here’s what retail investors need to know.

For starters, First Advantage stock hasn’t performed well recently. Shares have declined by 29% over the last 12 months. What’s more, they are virtually unchanged over the last five years, while the S&P 500 over that same period has delivered a positive return of 76%. In other words, First Advantage stock has massively underperformed the market. Therefore, it’s no surprise that Cortland has sold off a significant portion of its holding in the company.

So, why has First Advantage stock underperformed? In short, it comes down to sagging market for its services and poor execution. First Advantage operates in the employment services industry, a sector which is undergoing rapid change as artificial intelligence (AI) reshapes how companies hire and maintain their workforce. In essence, AI has introduced severe uncertainty into First Advantage’s key market, as many companies have scaled back hiring and increasingly rely on AI technology for human resource tasks. On top of this market disruption, First Advantage hasn’t delivered solid results. The company’s profitability has slipped, and First Advantage has dialed back guidance — disappointing analysts and investors.

To sum up, First Advantage is a company that is enduring strong headwinds on two fronts. The emergence of powerful AI-powered tools is creating uncertainty in its business model, while poor execution is undermining confidence in the company’s ability to bounce back. Retail investors may be wise to exercise caution with First Advantage stock.

Jake Lerch has positions in Alphabet and Visa. The Motley Fool has positions in and recommends Alphabet, Booking Holdings, Kyndryl, and Visa. The Motley Fool has a disclosure policy.