Is First Advantage Stock a Buy After Onex Canada Scooped Up Shares Worth Over $3 Million?
Key Points
Onex Canada Asset Management added 240,978 shares of First Advantage, raising position value by $3.1 million.
The transaction represents a 0.5% change in 13F reportable assets under management.
Post-trade holding: 772,147 shares valued at $11.88 million.
First Advantage now accounts for 1.5% of Onex Canada's 13F AUM, which places it outside the fund’s top five holdings.
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On November 14, 2025, Onex Canada Asset Management Inc. disclosed a buy of First Advantage (NASDAQ:FA), increasing its position value by $3,060,597 as of September 30, 2025.
What happened
According to a filing with the Securities and Exchange Commission dated November 14, 2025, Onex Canada Asset Management increased its position in First Advantage by 240,978 shares in the third quarter. The holding was valued at $11.88 million at quarter-end, up from the prior quarter.
What else to know
The fund’s buy brings First Advantage to 1.5% of its reportable U.S. equity assets, outside the top five positions.
Top holdings after the filing:
- NYSE: AON: $60,539,838 (7.6% of AUM)
- NYSE: APO: $50,566,434 (6.4% of AUM)
- NASDAQ: MSFT: $39,914,781 (5.0% of AUM)
- NASDAQ: NVDA: $34,304,785 (4.3% of AUM)
- NASDAQ: GOOGL: $33,844,625 (4.3% of AUM)
As of November 13, 2025, shares were priced at $13.13, down 27.14% over one year, underperforming the S&P 500 by 41.92 percentage points.
Company overview
| Metric | Value |
|---|---|
| Market Capitalization | $2.29 billion |
| Revenue (TTM) | $1.46 billion |
| Net Income (TTM) | ($138.66 million) |
| Price (as of market close November 13, 2025) | $13.13 |
Company snapshot
- First Advantage offers technology-driven solutions for employment background screening, verifications, compliance, and safety, including criminal background checks, drug screening, identity verification, and post-onboarding monitoring.
- It serves a global client base comprising large enterprises, mid-sized firms, and small businesses, with a focus on recruiting, human resources, risk, and compliance professionals.
- The company operates a scalable platform that enables clients to efficiently manage workforce risk and regulatory requirements across multiple industries.
First Advantage is a leading provider of human capital screening and compliance solutions, supporting organizations worldwide with technology-enabled background checks and risk mitigation tools.
With a broad suite of services and a scalable platform, the company enables clients to efficiently manage workforce risk and regulatory requirements. Its established market presence and diversified customer base underpin its competitive position in the specialty business services sector.
Foolish take
Onex Canada Asset Management's purchase of First Advantage shares in the third quarter of 2025 could have been prompted by the stock's downward trajectory at the time. Shares eventually hit a 52-week low of $11.95 in November.
Onex Canada's decision to raise its stake from 531,169 in Q2 to 772,147 in Q3 suggests the investment firm has a bullish outlook towards First Advantage. The perspective is warranted given the provider of employment technology's strong Q3 results.
First Advantage delivered Q3 revenue of $409.2 million, an increase over the prior year's $199.1 million thanks to its acquisition of Sterling Check Corp. This contributed to Q3 net income of $2.6 million compared to a net loss of $8.9 million in the prior year.
The company lowered the top end of its 2025 fully year guidance from $1.6 billion to $1.57 billion, which could have contributed to its share price decline. However, the company looks like it's set to deliver solid performance over time, and given its share price drop, now looks like a good time to consider buying the stock.
Glossary
13F filing: A quarterly report required by the Securities and Exchange Commission (SEC), disclosing U.S. equity holdings of institutional investment managers.
Assets under management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
Position value: The total market worth of a specific investment held by a fund at a given time.
Reportable assets: Investments that must be disclosed in regulatory filings, such as those required by the SEC.
Top holdings: The largest investments in a portfolio, typically ranked by market value.
Market presence: The extent of a company's visibility and activity within its industry or sector.
Specialty business services sector: An industry category focused on providing specialized support services to businesses.
Scalable platform: A technology system designed to handle increasing amounts of work or users efficiently.
Human capital screening: The process of evaluating potential or current employees for risk, compliance, and suitability.
Risk mitigation tools: Solutions or processes designed to reduce potential losses or threats to an organization.
Compliance professionals: Individuals responsible for ensuring a company follows laws, regulations, and internal policies.
TTM: The 12-month period ending with the most recent quarterly report.
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Robert Izquierdo has positions in Alphabet, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
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