Fortrea (NASDAQ:FTRE) hits new 1-year low on weak earnings

VaselineAugust 14, 2024

0 4 minutes read

Fortrea Holdings Inc share price (NASDAQ:FTRE – Get Free Report ) hit a new 52-week low on Monday after a weaker-than-expected earnings announcement. The company traded as high as $20.33 and last traded at $20.67 with a volume of 1004046 shares. Shares previously closed at $25.16.

The company reported ($0.03) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.07 by ($0.10). Fortrea had a positive return on equity of 4.76% and a negative net margin of 4.11%. The business had revenue of $662.40 million for the quarter, compared to analysts’ expectations of $689.08 million. During the same period in the previous year, the company earned $0.52 EPS. Fortrea’s quarterly revenue was down 8.6% compared to the same quarter last year.

Analyst upgrades and downgrades

A number of brokerages have recently issued reports on FTRE. TD Cowen decreased their price objective on shares of Fortrea from $27.00 to $23.00 and set a “hold” rating for the company in a report on Tuesday. Citigroup cut their price target on shares of Fortrea from $42.00 to $30.00 and set a “buy” rating for the company in a research note on Tuesday. Goldman Sachs Group began coverage on shares of Fortrea in a research note on Thursday, June 6th. They set a “neutral” rating and a $28.00 price target for the company. Evercore ISI lowered shares of Fortrea from an “outperform” rating to an “in-line” rating and cut their price target for the stock from $31.00 to $27.00 in a research note on Thursday. August 8. Finally, William Blair reaffirmed a “market perform” rating on shares of Fortrea in a research note on Monday. One analyst has rated the stock with a sell rating, seven have issued a hold rating, three have assigned a buy rating and one has issued a strong buy rating to the company’s stock. The company presently has an average rating of “Hold” and a consensus price target of $27.70, according to MarketBeat.

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Insider buying and selling at Fortrea

In related news, CEO Thomas Pike acquired 10,000 shares of the business’s stock in a transaction dated Wednesday, May 29th. The stock was bought at an average cost of $24.81 per share, for a total transaction of $248,100.00. Following the completion of the acquisition, the chief executive officer now directly owns 57,827 shares of the company’s stock, valued at approximately $1,434,687.87. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible via this hyperlink. In other Fortrea news, General Counsel James S. Hanson bought 2,000 shares of the stock in a transaction dated Wednesday, June 12th. The shares were acquired at an average cost of $25.30 per share, for a total transaction of $50,600.00. Following the completion of the transaction, the general counsel now owns 7,475 shares in the company, valued at approximately $189,117.50. The transaction was disclosed in a filing with the SEC, which can be accessed via this hyperlink. Also, CEO Thomas Pike bought 10,000 shares of the stock in a transaction dated Wednesday, May 29th. The stock was purchased at an average price of $24.81 per share, for a total transaction of $248,100.00. Following the completion of the transaction, the chief executive officer now owns 57,827 shares of the company’s stock, valued at approximately $1,434,687.87. Disclosure for this purchase can be found here. 0.12% of shares are currently owned by insiders.

Hedge funds affect Fortrea

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Vanguard Group Inc. acquired a new position in Fortrea in the 4th quarter valued at $347,110,000. Boston Partners grew its position in Fortrea by 3.2% in the first quarter. Boston Partners now owns 3,938,584 shares of the company’s stock valued at $157,075,000 after buying an additional 121,126 shares in the last quarter. Baupost Group LLC MA grew its position in Fortrea by 933.7% during the 2nd quarter. Baupost Group LLC MA now owns 3,140,360 shares of the company’s stock valued at $73,296,000 after buying an additional 2,836,563 shares shares in the last quarter. Victory Capital Management Inc. grew its position in Fortrea by 59.3% in the 2nd quarter. Victory Capital Management Inc. now owns 2,466,181 shares of the company’s stock valued at $57,561,000 after purchasing an additional 918,240 shares in the last quarter. Finally, Gates Capital Management Inc. acquired a new stake in Fortrea in the fourth quarter valued at $67,859,000.

Fortrea Trading Up 10.9%

The company has a quick ratio of 1.47, a current ratio of 1.47, and a debt-to-equity ratio of 0.98. The company has a fifty day simple moving average of $24.94 and a 200 day simple moving average of $31.24. The company has a market cap of $1.99 billion and a price-to-earnings ratio of -15.99.

Fortrea Company Profile

(Get a free report)

Fortrea Holdings Inc, a contract research organization, is primarily engaged in the provision of biopharmaceutical and medical device development services worldwide. The Company operates through two segments: Clinical Services and Activation Services. The Clinical Services segment offers clinical pharmacology and clinical development.