Fortrea (NASDAQ:FTRE) Trading Down 5.4% - Here's What Happened

Key Points

• Fortrea shares fell 5.4% to about $18.47 in midday trading, with volume down 83% versus the average session.
• Analyst sentiment remains mixed: five analysts rate the stock a Buy, six a Hold and one a Sell, producing a consensus Hold rating and an average price target of $20.75.
• Fortrea beat quarterly expectations, reporting adjusted earnings of $0.23 per share versus $0.18 expected and revenue of $678.2 million versus estimates of $647.6 million. CEO Anshul Thakral sold nearly 100,000 shares to cover tax withholding obligations tied to vested equity awards.

Fortrea Holdings Inc. (NASDAQ:FTRE - Get Free Report) was down 5.4% on Wednesday . The company traded as low as $18.32 and last traded at $18.4740. 263,977 shares traded hands during mid-day trading, a decline of 83% from the average session volume of 1,518,425 shares. The stock had previously closed at $19.52.

Analyst Upgrades and Downgrades

FTRE has been the topic of several recent research reports. Robert W. Baird set a $23.00 target price on Fortrea in a report on Thursday, July 30th. Barclays raised their price objective on Fortrea from $18.00 to $22.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 30th. Truist Financial lifted their price objective on Fortrea from $19.00 to $26.00 and gave the stock a "buy" rating in a research note on Thursday, July 30th. Zacks Research cut Fortrea from a "strong-buy" rating to a "hold" rating in a report on Tuesday, August 4th. Finally, Evercore reissued an "outperform" rating on shares of Fortrea in a research report on Wednesday, July 29th. Five equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $20.75.

Fortrea Stock Down 4.9%

The company has a quick ratio of 0.96, a current ratio of 0.96 and a debt-to-equity ratio of 1.98. The stock's 50-day simple moving average is $17.63 and its 200 day simple moving average is $13.91. The firm has a market cap of $1.77 billion, a P/E ratio of -20.40, a PEG ratio of 0.46 and a beta of 1.99.

Fortrea (NASDAQ:FTRE - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The company reported $0.23 earnings per share for the quarter, topping the consensus estimate of $0.18 by $0.05. Fortrea had a positive return on equity of 10.72% and a negative net margin of 3.18%.The firm had revenue of $678.20 million during the quarter, compared to analyst estimates of $647.57 million. As a group, research analysts forecast that Fortrea Holdings Inc. will post 0.85 EPS for the current fiscal year.

Insider Transactions at Fortrea

In other Fortrea news, CEO Anshul Thakral sold 99,869 shares of the business's stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $19.16, for a total value of $1,913,490.04. Following the transaction, the chief executive officer directly owned 316,797 shares of the company's stock, valued at approximately $6,069,830.52. The trade was a 23.97% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Company insiders own 0.73% of the company's stock.

Institutional Trading of Fortrea

Several hedge funds have recently modified their holdings of the stock. Larson Financial Group LLC boosted its stake in Fortrea by 136.7% during the fourth quarter. Larson Financial Group LLC now owns 1,856 shares of the company's stock worth $32,000 after acquiring an additional 1,072 shares in the last quarter. Osaic Holdings Inc. increased its stake in Fortrea by 74.3% in the second quarter. Osaic Holdings Inc. now owns 6,844 shares of the company's stock valued at $38,000 after purchasing an additional 2,918 shares in the last quarter. Tower Research Capital LLC TRC raised its holdings in shares of Fortrea by 137.0% during the second quarter. Tower Research Capital LLC TRC now owns 8,713 shares of the company's stock valued at $43,000 after purchasing an additional 5,036 shares during the period. Toronto Dominion Bank bought a new position in shares of Fortrea during the 4th quarter worth about $51,000. Finally, EverSource Wealth Advisors LLC boosted its position in shares of Fortrea by 662.9% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 11,963 shares of the company's stock worth $59,000 after purchasing an additional 10,395 shares in the last quarter.

Fortrea Company Profile

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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