Fortrea (NASDAQ:FTRE) Stock Price Down 6.6% - Here's Why

Key Points

• Fortrea Holdings Inc. (NASDAQ:FTRE) shares fell by 6.6% during mid-day trading on Monday, reaching a low of $10.89 and closing at $10.86, with trading volume down 73% compared to the average.
• Brokerage analysts have mixed ratings on Fortrea, with price targets ranging from a low of $6.00 to a high of $14.00, while the consensus rating remains "Hold" with a price target of $12.78.
• Notable insider activity includes Director Peter M. Neupert acquiring 32,500 shares at $6.26 each, leading to a significant increase in his ownership stake in the company.

Fortrea Holdings Inc. (NASDAQ:FTRE - Get Free Report) shares dropped 6.6% during mid-day trading on Monday . The company traded as low as $10.89 and last traded at $10.86. Approximately 629,590 shares traded hands during trading, a decline of 73% from the average daily volume of 2,320,468 shares. The stock had previously closed at $11.63.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on FTRE. Robert W. Baird boosted their price target on Fortrea from $9.00 to $14.00 and gave the stock an "outperform" rating in a research report on Wednesday, September 3rd. Barclays reissued an "underweight" rating and issued a $6.00 target price (up from $5.00) on shares of Fortrea in a report on Thursday, August 7th. Cowen reissued a "hold" rating on shares of Fortrea in a research note on Wednesday, May 14th. Baird R W upgraded Fortrea from a "hold" rating to a "strong-buy" rating in a report on Monday, August 4th. Finally, Mizuho reduced 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. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $12.78.

Fortrea Stock Performance

The company's fifty day simple moving average is $6.90 and its 200 day simple moving average is $6.91. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 1.87. The stock has a market capitalization of $937.06 million, a P/E ratio of -0.91 and a beta of 1.88.

Fortrea (NASDAQ:FTRE - Get Free Report) last announced its quarterly earnings results on Wednesday, August 6th. The company reported $0.19 earnings per share (EPS) for the quarter, topping 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 analyst estimates of $631.61 million. As a group, sell-side analysts forecast that Fortrea Holdings Inc. will post 0.51 earnings per share for the current fiscal year.

Insider Buying and Selling at Fortrea

In other news, Director Peter M. Neupert bought 32,500 shares of the stock in a transaction dated Monday, August 11th. The stock was purchased at an average price of $6.26 per share, for a total transaction of $203,450.00. Following the acquisition, the director owned 98,132 shares of the company's stock, valued at $614,306.32. The trade was a 49.52% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Erin L. Russell bought 9,854 shares of the business's stock in a transaction on Tuesday, September 2nd. The shares were acquired at an average cost of $10.15 per share, for a total transaction of $100,018.10. Following the transaction, the director directly owned 9,854 shares in the company, valued at approximately $100,018.10. This trade represents a ∞ increase in their position. The disclosure for this purchase can be found here. Insiders acquired 72,354 shares of company stock worth $507,168 over the last 90 days. 0.38% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of FTRE. AQR Capital Management LLC increased its stake in Fortrea by 494.8% in the second quarter. AQR Capital Management LLC now owns 6,515,124 shares of the company's stock valued at $31,729,000 after purchasing an additional 5,419,842 shares during the last quarter. Millennium Management LLC lifted its holdings in Fortrea by 1,625.8% in the first quarter. Millennium Management LLC now owns 3,499,220 shares of the company's stock valued at $26,419,000 after acquiring an additional 3,296,461 shares during the period. Assenagon Asset Management S.A. acquired a new stake in Fortrea in the first quarter valued at $9,232,000. Deutsche Bank AG lifted its holdings in Fortrea by 17,183.6% in the first quarter. Deutsche Bank AG now owns 1,165,086 shares of the company's stock valued at $8,796,000 after acquiring an additional 1,158,345 shares during the period. Finally, Bank of Nova Scotia acquired a new position in shares of Fortrea during the 2nd quarter worth $5,087,000.

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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