Fortrea (NASDAQ:FTRE) Stock Price Down 9.3% - Here's What Happened

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.

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

Analyst Ratings Changes

Several analysts have recently commented on the company. Barclays restated an "underweight" rating and set a $6.00 target price (up previously from $5.00) on shares of Fortrea in a report on Thursday. Evercore ISI raised their price target on Fortrea from $5.00 to $7.00 and gave the company an "in-line" rating in a report on Friday. Baird R W upgraded Fortrea from a "hold" rating to a "strong-buy" rating in a report on Monday, August 4th. Citigroup reiterated a "neutral" rating on shares of Fortrea in a report on Thursday, May 22nd. Finally, Mizuho decreased their price target on Fortrea from $8.00 to $7.00 and set a "neutral" rating on the stock in a report on Friday, July 11th. Two equities research analysts have rated the stock with a sell rating, ten have given a hold rating, one has assigned a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, Fortrea currently has a consensus rating of "Hold" and a consensus price target of $14.00.

Fortrea Stock Performance

The stock has a 50-day moving average of $5.50 and a 200-day moving average of $7.89. The firm has a market cap of $597.46 million, a price-to-earnings ratio of -0.58 and a beta of 1.81. The company has a debt-to-equity ratio of 1.87, a quick ratio of 1.02 and a current ratio of 1.02.

Fortrea (NASDAQ:FTRE - Get Free Report) last posted its quarterly 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. The firm had revenue of $710.30 million during the quarter, compared to the consensus estimate of $631.61 million. Fortrea had a positive return on equity of 5.25% and a negative net margin of 37.57%. As a group, analysts anticipate that Fortrea Holdings Inc. will post 0.51 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the stock. Covestor Ltd grew its stake in Fortrea by 57.7% in the fourth quarter. Covestor Ltd now owns 4,356 shares of the company's stock valued at $81,000 after purchasing an additional 1,593 shares in the last quarter. Point72 Asia Singapore Pte. Ltd. bought a new position in shares of Fortrea during the 4th quarter worth approximately $30,000. Commonwealth of Pennsylvania Public School Empls Retrmt SYS boosted its stake in shares of Fortrea by 8.2% during the 2nd quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 23,235 shares of the company's stock worth $115,000 after acquiring an additional 1,769 shares during the period. Sequoia Financial Advisors LLC boosted its stake in shares of Fortrea by 1.0% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 176,159 shares of the company's stock worth $870,000 after acquiring an additional 1,802 shares during the period. Finally, Verdence Capital Advisors LLC boosted its stake in shares of Fortrea by 12.8% during the 2nd quarter. Verdence Capital Advisors LLC now owns 16,046 shares of the company's stock worth $79,000 after acquiring an additional 1,827 shares during the period.

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.