Fortrea (NASDAQ:FTRE) Shares Gap Up - Here's Why

Key Points

• Fortrea Holdings Inc.'s stock experienced a notable increase, opening at $6.19 after a previous close of $5.46, with shares currently trading at $6.97.
• Wall Street analysts have mixed views on Fortrea, with one upgrade from "neutral" to "outperform" and target price adjustments ranging from $5.00 to $9.00; the average consensus rating is currently "Hold" with a target price of $13.73.
• Despite reporting earnings of $0.02 per share, which exceeded estimates, Fortrea maintains a negative net margin of 29.43% and a debt-to-equity ratio of 1.22.

Fortrea Holdings Inc. (NASDAQ:FTRE - Get Free Report)'s share price gapped up before the market opened on Monday . The stock had previously closed at $5.46, but opened at $6.19. Fortrea shares last traded at $6.97, with a volume of 520,195 shares traded.

Analyst Upgrades and Downgrades

FTRE has been the topic of several recent analyst reports. Robert W. Baird raised shares of Fortrea from a "neutral" rating to an "outperform" rating and lifted their target price for the stock from $7.00 to $9.00 in a research report on Monday. Evercore ISI increased their price target on Fortrea from $5.00 to $7.00 and gave the company an "in-line" rating in a research report on Friday. Truist Financial started coverage on Fortrea in a research report on Friday, May 2nd. They issued a "hold" rating and a $7.00 price objective on the stock. Barclays restated an "underweight" rating and issued a $6.00 price objective (up previously from $5.00) on shares of Fortrea in a research note on Thursday. Finally, Citigroup reissued a "neutral" rating on shares of Fortrea in a report on Thursday, May 22nd. Two research analysts have rated the stock with a sell rating, ten have issued a hold rating, one has assigned a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $14.00.

Fortrea Stock Performance

The company has a quick ratio of 0.97, a current ratio of 1.02 and a debt-to-equity ratio of 1.87. The business has a fifty day moving average of $5.45 and a 200 day moving average of $8.12. The company has a market cap of $609.97 million, a P/E ratio of -0.59, a P/E/G ratio of 0.45 and a beta of 1.81.

Fortrea (NASDAQ:FTRE - Get Free Report) last released its earnings results on Wednesday, August 6th. The company reported $0.19 earnings per share (EPS) for the quarter, beating the consensus estimate 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 firm had revenue of $710.30 million during the quarter, compared to analyst estimates of $631.61 million. On average, equities analysts predict that Fortrea Holdings Inc. will post 0.51 EPS for the current year.

Hedge Funds Weigh In On Fortrea

A number of hedge funds have recently modified their holdings of FTRE. Norges Bank bought a new position in Fortrea in the 4th quarter worth approximately $330,000. Alliancebernstein L.P. raised its position in Fortrea by 107.3% during the fourth quarter. Alliancebernstein L.P. now owns 111,845 shares of the company's stock valued at $2,086,000 after purchasing an additional 57,879 shares during the period. Russell Investments Group Ltd. boosted its stake in Fortrea by 20.8% during the fourth quarter. Russell Investments Group Ltd. now owns 219,365 shares of the company's stock worth $4,091,000 after buying an additional 37,744 shares during the period. FMR LLC grew its holdings in Fortrea by 67.7% during the 4th quarter. FMR LLC now owns 8,086,806 shares of the company's stock worth $150,819,000 after acquiring an additional 3,265,402 shares in the last quarter. Finally, Bank of Montreal Can increased its holdings in Fortrea by 53.7% during the fourth quarter. Bank of Montreal Can now owns 21,983 shares of the company's stock valued at $410,000 after buying an additional 7,677 shares during the period.

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.