Fortrea (NASDAQ:FTRE) Stock Price Down 7.4% – Here’s Why

Fortrea Holdings Inc. (NASDAQ:FTRE)’s stock price was down 7.4% on Tuesday . The company traded as low as $8.99 and last traded at $9.10. Approximately 686,066 shares were traded during trading, a decline of 60% from the average daily volume of 1,716,244 shares. The stock had previously closed at $9.83.

Analyst Ratings Changes

Several analysts recently issued reports on the stock. Weiss Ratings reissued a “sell (d-)” rating on shares of Fortrea in a research report on Thursday, January 22nd. Wedbush set a $21.00 price objective on shares of Fortrea in a report on Thursday, December 11th. Truist Financial set a $22.00 price objective on shares of Fortrea and gave the company a “buy” rating in a report on Thursday, January 8th. Mizuho set a $15.00 target price on shares of Fortrea in a research report on Friday, January 9th. Finally, Citigroup upgraded shares of Fortrea from a “neutral” rating to a “buy” rating and upped their target price for the stock from $12.00 to $21.00 in a report on Thursday, December 11th. Five investment analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, Fortrea currently has an average rating of “Hold” and an average target price of $16.15.

Fortrea Price Performance

The firm has a market cap of $880.77 million, a P/E ratio of -0.86, a P/E/G ratio of 0.32 and a beta of 1.80. The company has a fifty day moving average of $13.92 and a 200-day moving average of $12.45. The company has a debt-to-equity ratio of 1.86, a current ratio of 0.98 and a quick ratio of 0.98.

Fortrea (NASDAQ:FTRE) last issued its quarterly earnings data on Thursday, February 26th. The company reported $0.09 earnings per share for the quarter, missing the consensus estimate of $0.16 by ($0.07). The company had revenue of $660.50 million for the quarter, compared to the consensus estimate of $665.22 million. Fortrea had a negative net margin of 36.21% and a positive return on equity of 6.23%. On average, sell-side analysts anticipate that Fortrea Holdings Inc. will post 0.51 EPS for the current fiscal year.

Insider Buying and Selling at Fortrea

In related news, CFO Jill G. Mcconnell sold 5,061 shares of the business’s stock in a transaction dated Tuesday, March 10th. The shares were sold at an average price of $9.07, for a total transaction of $45,903.27. Following the transaction, the chief financial officer directly owned 69,796 shares in the company, valued at approximately $633,049.72. The trade was a 6.76% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders have sold 7,869 shares of company stock worth $75,609 over the last 90 days. 0.38% of the stock is owned by company insiders.

Institutional Investors Weigh In On Fortrea

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Royal Bank of Canada grew its holdings in shares of Fortrea by 48.9% in the first quarter. Royal Bank of Canada now owns 121,707 shares of the company’s stock valued at $920,000 after acquiring an additional 39,944 shares in the last quarter. Caxton Associates LLP purchased a new position in Fortrea in the first quarter worth $196,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in Fortrea by 10.9% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 282,780 shares of the company’s stock worth $2,135,000 after purchasing an additional 27,746 shares during the last quarter. Focus Partners Wealth bought a new position in Fortrea in the 1st quarter valued at $80,000. Finally, Acadian Asset Management LLC purchased a new stake in shares of Fortrea during the 1st quarter valued at $65,000.

About Fortrea

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.