Analysts at Wall Street Zen have upgraded Fortrea (NASDAQ: FTRE) from a “hold” rating to a “buy” rating, according to a research note released on Friday. This positive shift reflects a growing confidence in the company’s stock performance amid fluctuating market conditions.
Several other financial analysts have also recently revised their ratings on Fortrea, highlighting a diverse range of outlooks. On July 11, Mizuho lowered its target price for the stock from $8.00 to $7.00, maintaining a “neutral” rating. Meanwhile, Evercore ISI raised its target price from $5.00 to $7.00, assigning an “in-line” rating on August 8.
On August 4, Baird R W upgraded Fortrea from a “hold” to a “strong-buy” rating, while Barclays reiterated its “underweight” rating with an adjusted target price of $6.00, previously set at $5.00, on August 7. Jefferies Financial Group also adjusted its target price on September 9, moving it from $7.00 to $9.50 and maintaining a “hold” rating. Currently, one analyst has issued a “strong buy” rating, one a “buy,” nine have rated it “hold,” and one has given it a “sell.”
According to MarketBeat, Fortrea’s average rating stands at “hold” with a consensus price target of $11.50.
Fortrea Stock Performance and Recent Earnings
Fortrea’s stock opened at $8.68 on Friday, experiencing a decline of 2.7%. The company has a market capitalization of approximately $788.14 million and operates with a P/E ratio of -0.76. The stock has experienced significant volatility over the past year, reaching a low of $3.97 and a high of $25.28.
Fortrea announced its earnings results on August 6, reporting earnings per share (EPS) of $0.19, surpassing analysts’ consensus estimates of $0.06 by $0.13. The company generated revenue of $710.30 million for the quarter, exceeding expectations of $631.61 million. Despite these promising figures, Fortrea reported a negative net margin of 37.57% and a positive return on equity of 5.25%. Analysts expect Fortrea to post an EPS of $0.51 for the current year.
Insider Trading Activity and Institutional Investment
In related news, Chief Financial Officer Jill G. McConnell sold 3,156 shares of Fortrea on September 9 at an average price of $10.23, resulting in a total transaction of $32,285.88. Following this sale, McConnell holds 58,770 shares valued at approximately $601,217.10, reflecting a 5.10% decrease in her ownership of the stock.
Conversely, Director Erin L. Russell purchased 9,854 shares on September 2 at an average cost of $10.15 per share, totaling $100,018.10. After this transaction, Russell’s holdings amount to 9,854 shares, valued at the same total.
Over the past three months, insiders have acquired 72,354 shares valued at $507,168 while selling 10,311 shares valued at $94,635. Currently, insider ownership constitutes about 0.38% of the total stock.
Several large institutional investors have also made significant adjustments to their positions in Fortrea. Two Sigma Advisers LP acquired a new stake valued at approximately $388,000 during the fourth quarter. Additionally, UBS Asset Management Americas LLC increased its holdings by 2.3% during the same period, now owning 255,034 shares worth $4,756,000 after an additional purchase of 5,691 shares.
Other notable changes in institutional holdings include GAMMA Investing LLC, which raised its position by 6,216.1%, acquiring 59,245 shares valued at $447,000, and SG Americas Securities LLC, which increased its stake by 960.3%, now owning 129,318 shares worth $976,000.
Fortrea Holdings Inc. operates as a contract research organization, focusing on biopharmaceutical product and medical device development services globally. The company operates through two main segments: Clinical Services and Enabling Services, providing a wide array of services throughout the clinical pharmacology and development spectrum.
