Fortrea (NASDAQ:FTRE) Stock Price Down 5.7% - Time to Sell?

Key Points

• Fortrea shares fell 5.7% to about $18.07 in Monday trading, with volume significantly below the stock’s average session volume.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and an average price target of $19.95; ratings include one Strong Buy, five Buys, five Holds and one Sell.
• Fortrea exceeded quarterly expectations, reporting $0.23 in earnings per share versus the $0.18 consensus and revenue of $678.2 million versus $647.6 million expected. Major institutional investors including Goldman Sachs and Vanguard also increased their positions.

Fortrea Holdings Inc. (NASDAQ:FTRE - Get Free Report)'s share price traded down 5.7% on Monday . The company traded as low as $17.69 and last traded at $18.0690. 339,110 shares changed hands during mid-day trading, a decline of 78% from the average session volume of 1,512,641 shares. The stock had previously closed at $19.17.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on FTRE shares. Evercore reaffirmed an "outperform" rating on shares of Fortrea in a research note on Wednesday. Zacks Research raised shares of Fortrea from a "hold" rating to a "strong-buy" rating in a research note on Monday, July 6th. Wall Street Zen raised Fortrea from a "hold" rating to a "buy" rating in a research report on Saturday. TD Cowen reiterated a "buy" rating on shares of Fortrea in a research note on Wednesday, May 6th. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and issued a $20.00 price objective on shares of Fortrea in a research report on Thursday. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Fortrea has an average rating of "Moderate Buy" and an average price target of $19.95.

Fortrea Stock Down 0.9%

The stock's fifty day simple moving average is $17.05 and its two-hundred day simple moving average is $13.80. The company has a debt-to-equity ratio of 1.98, a current ratio of 0.96 and a quick ratio of 0.96. The company has a market capitalization of $1.81 billion, a price-to-earnings ratio of -20.96, a PEG ratio of 0.46 and a beta of 1.99.

Fortrea (NASDAQ:FTRE - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The company reported $0.23 earnings per share for the quarter, beating analysts' consensus estimates of $0.18 by $0.05. Fortrea had a negative net margin of 3.18% and a positive return on equity of 10.72%. The business had revenue of $678.20 million during the quarter, compared to the consensus estimate of $647.57 million. On average, sell-side analysts predict that Fortrea Holdings Inc. will post 0.85 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the company. Goldman Sachs Group Inc. increased its position in Fortrea by 3.7% in the 4th quarter. Goldman Sachs Group Inc. now owns 8,272,597 shares of the company's stock worth $142,702,000 after purchasing an additional 293,992 shares during the last quarter. Eagle Health Investments LP grew its stake in shares of Fortrea by 23.2% in the 4th quarter. Eagle Health Investments LP now owns 1,218,560 shares of the company's stock valued at $21,020,000 after buying an additional 229,788 shares in the last quarter. Vanguard Group Inc. increased its holdings in Fortrea by 3.2% in the fourth quarter. Vanguard Group Inc. now owns 8,331,016 shares of the company's stock worth $143,710,000 after buying an additional 258,098 shares during the last quarter. Hillsdale Investment Management Inc. bought a new position in Fortrea during the first quarter valued at approximately $2,990,000. Finally, Y Intercept Hong Kong Ltd acquired a new stake in Fortrea in the first quarter valued at approximately $1,094,000.

About Fortrea

Fortrea, Inc is a global contract development and manufacturing organization (CDMO) that provides integrated solutions for pharmaceutical and biotechnology companies. Established as a spin-off from Thermo Fisher Scientific's Pharma Services business in October 2023, Fortrea leverages a legacy of scientific expertise and manufacturing scale to support drug development from early-stage research through commercial production. The company's comprehensive offerings address the complex needs of both small-molecule and biologics programs, making it a single source for clients seeking to accelerate timelines and manage costs.

Fortrea's core services encompass analytical and formulation development, process optimization, clinical and commercial manufacturing, and packaging services.

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