Fortrea (NASDAQ:FTRE) Shares Gap Down Following Insider Selling

Key Points

• Fortrea Holdings Inc. shares gapped down prior to trading, opening at $9.75 after a previous close of $10.07, and last traded at $9.71 with a volume of 236,872 shares.
• Analysts have set varied price targets for Fortrea, with Goldman Sachs lowering their target from $7.00 to $5.00, while Robert W. Baird raised theirs from $9.00 to $14.00, leading to a consensus rating of "Hold" with an average price target of $11.50.
• Director Erin L. Russell bought 9,854 shares of Fortrea at $10.15, increasing their stake, while CFO Jill G. McConnell sold 4,886 shares at $8.01, indicating mixed insider trading activity.

Fortrea Holdings Inc. (NASDAQ:FTRE - Get Free Report) gapped down prior to trading on Wednesday following insider selling activity. The stock had previously closed at $10.07, but opened at $9.75. Fortrea shares last traded at $9.71, with a volume of 236,872 shares.

Specifically, CFO Jill G. Mcconnell sold 3,156 shares of the business's stock in a transaction on Tuesday, September 9th. The shares were sold at an average price of $10.23, for a total value of $32,285.88. Following the sale, the chief financial officer owned 58,770 shares in the company, valued at approximately $601,217.10. The trade was a 5.10% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on FTRE shares. Evercore ISI lifted their price target on shares of Fortrea from $5.00 to $7.00 and gave the company an "in-line" rating in a report on Friday, August 8th. Barclays reaffirmed an "underweight" rating and set a $6.00 price objective (up previously from $5.00) on shares of Fortrea in a report on Thursday, August 7th. Jefferies Financial Group boosted their target price on Fortrea from $7.00 to $9.50 and gave the stock a "hold" rating in a report on Tuesday, September 9th. Mizuho dropped their price target on Fortrea from $8.00 to $7.00 and set a "neutral" rating for the company in a report on Friday, July 11th. Finally, Robert W. Baird lifted their price objective on Fortrea from $9.00 to $14.00 and gave the company an "outperform" rating in a research report on Wednesday, September 3rd. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $11.50.

Fortrea Price Performance

The company has a debt-to-equity ratio of 1.87, a current ratio of 1.02 and a quick ratio of 1.02. The firm has a market capitalization of $926.16 million, a P/E ratio of -0.90 and a beta of 1.88. The company's 50 day moving average price is $7.40 and its 200 day moving average price is $6.75.

Fortrea (NASDAQ:FTRE - Get Free Report) last posted its quarterly earnings data on Wednesday, August 6th. The company reported $0.19 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.06 by $0.13. The firm had revenue of $710.30 million for the quarter, compared to the consensus estimate of $631.61 million. Fortrea had a positive return on equity of 5.25% and a negative net margin of 37.57%. As a group, sell-side analysts anticipate that Fortrea Holdings Inc. will post 0.51 EPS for the current fiscal year.

Hedge Funds Weigh In On Fortrea

Several large investors have recently made changes to their positions in FTRE. Point72 Asia Singapore Pte. Ltd. acquired a new stake in Fortrea in the fourth quarter worth about $30,000. GF Fund Management CO. LTD. bought a new position in shares of Fortrea in the 4th quarter valued at about $35,000. Brooklyn Investment Group boosted its stake in shares of Fortrea by 9,577.5% in the 1st quarter. Brooklyn Investment Group now owns 3,871 shares of the company's stock valued at $29,000 after purchasing an additional 3,831 shares during the last quarter. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Fortrea during the 1st quarter worth approximately $39,000. Finally, Allworth Financial LP raised its stake in shares of Fortrea by 6,802.4% during the second quarter. Allworth Financial LP now owns 5,660 shares of the company's stock worth $28,000 after buying an additional 5,578 shares during the last quarter.

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.