Fortrea (NASDAQ:FTRE) Shares Gap Up on Insider Buying Activity

Key Points

• Fortrea Holdings Inc. saw its share price increase from $6.39 to $6.89 after significant insider buying by Director Peter M. Neupert, who purchased over 62,500 shares.
• Analysts have mixed views on Fortrea, with Robert W. Baird upgrading their rating from "neutral" to "outperform" and raising their price target to $9, while others maintain a "hold" or "sell" rating.
• Fortrea reported an earnings per share of $0.19 for the recent quarter, exceeding expectations, and had a revenue of $710.30 million compared to estimates of $631.61 million.

Fortrea Holdings Inc. (NASDAQ:FTRE - Get Free Report)'s stock price gapped up prior to trading on Tuesday following insider buying activity. The stock had previously closed at $6.39, but opened at $6.89. Fortrea shares last traded at $7.59, with a volume of 238,046 shares traded.

Specifically, Director Peter M. Neupert purchased 32,500 shares of Fortrea stock in a transaction that occurred on Monday, August 11th. The stock was purchased at an average cost of $6.26 per share, with a total value of $203,450.00. Following the completion of the transaction, the director owned 98,132 shares of the company's stock, valued at approximately $614,306.32. This trade represents a 49.52% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Peter M. Neupert acquired 30,000 shares of the company's stock in a transaction on Friday, August 8th. The stock was acquired at an average price of $6.79 per share, for a total transaction of $203,700.00. Following the purchase, the director directly owned 65,632 shares of the company's stock, valued at approximately $445,641.28. This trade represents a 84.19% increase in their ownership of the stock. The disclosure for this purchase can be found here.

Analyst Upgrades and Downgrades

Several analysts have issued reports on the company. Robert W. Baird upgraded Fortrea from a "neutral" rating to an "outperform" rating and upped their price objective for the company from $7.00 to $9.00 in a research note on Monday, August 4th. The Goldman Sachs Group lowered their target price on Fortrea from $7.00 to $5.00 and set a "neutral" rating on the stock in a research note on Wednesday, May 14th. Truist Financial assumed coverage on Fortrea in a research note on Friday, May 2nd. They set a "hold" rating and a $7.00 target price on the stock. Citigroup reiterated a "neutral" rating on shares of Fortrea in a research note on Thursday, May 22nd. Finally, Barclays reiterated an "underweight" rating and set a $6.00 target price (up previously from $5.00) on shares of Fortrea in a research note on Thursday, August 7th. One analyst has rated the stock with a sell rating, ten have issued a hold rating, one has issued a buy rating and one has given a strong buy rating to the stock. According to MarketBeat, the company presently has an average rating of "Hold" and an average price target of $13.30.

Fortrea Trading Up 1.8%

The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 1.87. The firm has a 50 day moving average of $5.76 and a 200 day moving average of $7.67. The firm has a market cap of $730.03 million, a PE ratio of -0.71 and a beta of 1.81.

Fortrea (NASDAQ:FTRE - Get Free Report) last issued its earnings results on Wednesday, August 6th. The company reported $0.19 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.06 by $0.13. Fortrea had a negative net margin of 37.57% and a positive return on equity of 5.25%. The business had revenue of $710.30 million for the quarter, compared to analysts' expectations of $631.61 million. Equities analysts anticipate that Fortrea Holdings Inc. will post 0.51 earnings per share for the current year.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in FTRE. Allworth Financial LP grew its position in Fortrea by 6,802.4% in the second quarter. Allworth Financial LP now owns 5,660 shares of the company's stock worth $28,000 after acquiring an additional 5,578 shares in the last quarter. Brooklyn Investment Group grew its position in Fortrea by 9,577.5% in the first quarter. Brooklyn Investment Group now owns 3,871 shares of the company's stock worth $29,000 after acquiring an additional 3,831 shares in the last quarter. Point72 Asia Singapore Pte. Ltd. purchased a new position in Fortrea in the fourth quarter worth $30,000. GF Fund Management CO. LTD. purchased a new position in Fortrea in the fourth quarter worth $35,000. Finally, Caitong International Asset Management Co. Ltd purchased a new position in Fortrea in the first quarter worth $39,000.

About Fortrea

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.