Fortrea (NASDAQ:FTRE) Shares Up 3.6% - Here's Why

Key Points

• Fortrea shares rose 3.6% to about $18.04 in mid-day trading, though volume was 91% below the average daily level.
• The company exceeded quarterly expectations, reporting $0.23 in EPS versus $0.18 expected and revenue of $678.2 million versus the $647.6 million consensus estimate.
• Analyst sentiment is mixed but leans positive: Fortrea has a consensus “Hold” rating and a $22 average price target, while recent targets range from $16 to $26.

Fortrea Holdings Inc. (NASDAQ:FTRE - Get Free Report) rose 3.6% during mid-day trading on Tuesday . The company traded as high as $18.15 and last traded at $18.0430. Approximately 139,105 shares were traded during trading, a decline of 91% from the average daily volume of 1,476,482 shares. The stock had previously closed at $17.41.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on FTRE shares. Robert W. Baird set a $23.00 price objective on shares of Fortrea in a research note on Thursday, July 30th. Citigroup boosted their price objective on Fortrea from $20.00 to $22.00 and gave the company a "buy" rating in a research report on Friday, July 31st. Zacks Research cut Fortrea from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, August 4th. Mizuho boosted their target price on shares of Fortrea from $13.00 to $16.00 and gave the stock a "neutral" rating in a report on Monday, July 13th. Finally, 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. Five equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Fortrea has a consensus rating of "Hold" and a consensus target price of $22.00.

Fortrea Stock Performance

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 firm has a market capitalization of $1.80 billion, a P/E ratio of -20.71, a P/E/G ratio of 0.41 and a beta of 1.97. The firm has a 50-day moving average price of $18.25 and a two-hundred day moving average price of $14.62.

Fortrea (NASDAQ:FTRE - Get Free Report) last issued its earnings results on Wednesday, July 29th. The company reported $0.23 EPS for the quarter, topping analysts' consensus estimates of $0.18 by $0.05. The business had revenue of $678.20 million for the quarter, compared to analyst estimates of $647.57 million. Fortrea had a negative net margin of 3.18% and a positive return on equity of 10.72%. On average, analysts forecast that Fortrea Holdings Inc. will post 0.85 EPS for the current fiscal year.

Insider Buying and Selling at Fortrea

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

Hedge Funds Weigh In On Fortrea

A number of large investors have recently added to or reduced their stakes in the company. Oregon Public Employees Retirement Fund increased its position in shares of Fortrea by 3.4% in the 4th quarter. Oregon Public Employees Retirement Fund now owns 21,166 shares of the company's stock valued at $365,000 after acquiring an additional 700 shares during the period. Allworth Financial LP boosted its position in Fortrea by 22.3% in the 2nd quarter. Allworth Financial LP now owns 3,923 shares of the company's stock worth $68,000 after purchasing an additional 716 shares in the last quarter. EverSource Wealth Advisors LLC grew its position in Fortrea by 9.5% during the first quarter. EverSource Wealth Advisors LLC now owns 10,936 shares of the company's stock valued at $103,000 after buying an additional 953 shares during the period. Larson Financial Group LLC raised its position in shares of Fortrea by 136.7% in 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 during the period. Finally, Amundi boosted its stake in shares of Fortrea by 20.2% during the 1st quarter. Amundi now owns 12,490 shares of the company's stock worth $118,000 after acquiring an additional 2,101 shares in the last quarter.

Fortrea Company Profile

Fortrea Holdings Inc NASDAQ: FTRE is a global contract research organization (CRO) that provides clinical development and related services to pharmaceutical, biotechnology and medical device companies. The company supports sponsors as they plan, manage and evaluate clinical studies designed to bring new medicines and therapies to market.

Fortrea's services span clinical trial management, patient recruitment and engagement, data management, biostatistics, medical monitoring, regulatory support and clinical pharmacology.

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