Fortrea (NASDAQ:FTRE) Trading Down 9.3% - Here's Why

Key Points

• Fortrea Holdings Inc. saw its share price decrease by 9.3%, with stocks trading as low as $5.95 on Wednesday, amidst significantly lower trading volume compared to previous sessions.
• Analysts have recently revised price targets for Fortrea, with Goldman Sachs and Evercore ISI lowering their targets to $5.00, while Robert W. Baird upgraded their target to $9.00.
• The company reports a debt-to-equity ratio of 1.22 and a negative net margin of 29.43%, indicating potential financial challenges despite a recent earnings beat.

Fortrea Holdings Inc. (NASDAQ:FTRE - Get Free Report)'s share price fell 9.3% during trading on Wednesday . The stock traded as low as $6.10 and last traded at $5.95. 429,838 shares traded hands during mid-day trading, a decline of 82% from the average session volume of 2,366,036 shares. The stock had previously closed at $6.56.

Analysts Set New Price Targets

Several brokerages recently issued reports on FTRE. The Goldman Sachs Group cut their price target on Fortrea from $7.00 to $5.00 and set a "neutral" rating for the company in a research note on Wednesday, May 14th. Evercore ISI decreased their price objective on Fortrea from $6.00 to $5.00 and set an "in-line" rating for the company in a report on Wednesday, July 9th. Cowen reiterated a "hold" rating on shares of Fortrea in a report on Wednesday, May 14th. Barclays decreased their price target on Fortrea from $6.00 to $5.00 and set an "underweight" rating for the company in a report on Tuesday, May 13th. Finally, Robert W. Baird upgraded Fortrea from a "neutral" rating to an "outperform" rating and raised their target price for the company from $7.00 to $9.00 in a research note on Monday. Two analysts have rated the stock with a sell rating, ten have assigned a hold rating, one has assigned a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $13.73.

Fortrea Stock Performance

The company has a debt-to-equity ratio of 1.22, a quick ratio of 0.97 and a current ratio of 0.97. The firm has a market cap of $582.82 million, a P/E ratio of -0.73, a P/E/G ratio of 0.44 and a beta of 1.81. The business's 50-day simple moving average is $5.34 and its 200 day simple moving average is $8.20.

Fortrea (NASDAQ:FTRE - Get Free Report) last released its earnings results on Wednesday, August 6th. The company reported $0.19 earnings per share for the quarter, beating analysts' consensus estimates of $0.06 by $0.13. Fortrea had a negative net margin of 29.43% and a positive return on equity of 2.84%. As a group, equities analysts predict that Fortrea Holdings Inc. will post 0.51 earnings per share for the current year.

Institutional Trading of Fortrea

A number of large investors have recently made changes to their positions in FTRE. Millennium Management LLC increased its holdings in shares of Fortrea by 1,625.8% in the 1st quarter. Millennium Management LLC now owns 3,499,220 shares of the company's stock worth $26,419,000 after buying an additional 3,296,461 shares during the last quarter. FMR LLC increased its holdings in shares of Fortrea by 67.7% in the 4th quarter. FMR LLC now owns 8,086,806 shares of the company's stock worth $150,819,000 after buying an additional 3,265,402 shares during the last quarter. Corvex Management LP increased its holdings in shares of Fortrea by 56.7% in the 4th quarter. Corvex Management LP now owns 3,480,898 shares of the company's stock worth $64,919,000 after buying an additional 1,260,156 shares during the last quarter. Assenagon Asset Management S.A. bought a new stake in shares of Fortrea in the 1st quarter worth about $9,232,000. Finally, Deutsche Bank AG grew its holdings in Fortrea by 17,183.6% during the 1st quarter. Deutsche Bank AG now owns 1,165,086 shares of the company's stock valued at $8,796,000 after purchasing an additional 1,158,345 shares during the last quarter.

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.

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