Fortrea (NASDAQ:FTRE) Shares Down 7.6% - Here's Why

Key Points

• Fortrea Holdings Inc. saw its stock price drop by 7.6% to $6.35 during trading, with a drastic decline in trading volume by 75% compared to its average daily volume.
• Several analysts have downgraded Fortrea's target price, with Goldman Sachs lowering it to $5.00 and Mizuho to $7.00, while a majority maintain a "hold" rating on the stock.
• Fortrea recently reported earnings that exceeded expectations with a $0.02 EPS and revenue of $651.30 million, outperforming the consensus estimate of $609.63 million.

Fortrea Holdings Inc. (NASDAQ:FTRE - Get Free Report)'s stock price dropped 7.6% during trading on Tuesday . The company traded as low as $6.31 and last traded at $6.35. Approximately 584,475 shares traded hands during trading, a decline of 75% from the average daily volume of 2,385,278 shares. The stock had previously closed at $6.87.

Analyst Upgrades and Downgrades

FTRE has been the topic of several analyst reports. Truist Financial initiated coverage on Fortrea in a report on Friday, May 2nd. They set a "hold" rating and a $7.00 price objective on the stock. Mizuho decreased their price objective on Fortrea from $8.00 to $7.00 and set a "neutral" rating on the stock in a report on Friday, July 11th. The Goldman Sachs Group cut their target price on Fortrea from $7.00 to $5.00 and set a "neutral" rating on the stock in a research report on Wednesday, May 14th. Citigroup reaffirmed a "neutral" rating on shares of Fortrea in a research report on Thursday, May 22nd. Finally, Cowen reaffirmed a "hold" rating on shares of Fortrea in a research report on Wednesday, May 14th. Two equities research analysts have rated the stock with a sell rating and twelve have given a hold rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $14.00.

Fortrea Trading Down 7.4%

The stock has a market cap of $575.58 million, a price-to-earnings ratio of -0.72, a P/E/G ratio of 0.46 and a beta of 1.76. The business's fifty day simple moving average is $5.12 and its 200 day simple moving average is $8.63. The company has a debt-to-equity ratio of 1.22, a current ratio of 0.97 and a quick ratio of 0.97.

Fortrea (NASDAQ:FTRE - Get Free Report) last released its quarterly earnings data on Monday, May 12th. The company reported $0.02 EPS for the quarter, topping analysts' consensus estimates of ($0.07) by $0.09. The firm had revenue of $651.30 million during the quarter, compared to the consensus estimate of $609.63 million. Fortrea had a negative net margin of 29.43% and a positive return on equity of 2.84%. On average, research analysts predict that Fortrea Holdings Inc. will post 0.51 EPS for the current year.

Institutional Investors Weigh In On Fortrea

A number of hedge funds have recently added to or reduced their stakes in FTRE. Covestor Ltd raised its position in Fortrea by 57.7% in the fourth quarter. Covestor Ltd now owns 4,356 shares of the company's stock worth $81,000 after acquiring an additional 1,593 shares in the last quarter. Point72 Asia Singapore Pte. Ltd. bought a new stake in Fortrea in the fourth quarter worth about $30,000. Sequoia Financial Advisors LLC raised its position in Fortrea by 1.0% in the second quarter. Sequoia Financial Advisors LLC now owns 176,159 shares of the company's stock worth $870,000 after acquiring an additional 1,802 shares in the last quarter. Verdence Capital Advisors LLC increased its stake in Fortrea by 12.8% in the 2nd quarter. Verdence Capital Advisors LLC now owns 16,046 shares of the company's stock worth $79,000 after purchasing an additional 1,827 shares in the last quarter. Finally, GF Fund Management CO. LTD. purchased a new position in Fortrea in the 4th quarter worth about $35,000.

Fortrea Company Profile

Fortrea Holdings Inc, a contract research organization, primarily engages in the provision of biopharmaceutical product and medical device development services worldwide. The company operates through two segments: Clinical Services and Enabling Services. The Clinical Services segment provides across the clinical pharmacology and clinical development spectrum.

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