Fortrea (NASDAQ:FTRE) Trading 10.5% Higher – Should You Buy?

Fortrea Holdings Inc. (NASDAQ:FTRE) rose 10.5% during mid-day trading on Thursday . The company traded as high as $17.20 and last traded at $17.27. Approximately 886,991 shares traded hands during trading, a decline of 42% from the average daily volume of 1,522,327 shares. The stock had previously closed at $15.63.

Wall Street Analyst Weigh In

FTRE has been the subject of a number of research reports. Mizuho raised their target price on shares of Fortrea from $11.00 to $13.00 and gave the stock a “neutral” rating in a research note on Tuesday, May 12th. Truist Financial set a $19.00 target price on shares of Fortrea in a research note on Wednesday, May 6th. Citigroup raised their target price on shares of Fortrea from $16.00 to $20.00 and gave the stock a “buy” rating in a research note on Wednesday, May 6th. TD Cowen restated a “buy” rating on shares of Fortrea in a research note on Wednesday, May 6th. Finally, Robert W. Baird set a $20.00 target price on shares of Fortrea in a research note on Wednesday, May 6th. Five investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $17.25.

Fortrea Stock Up 10.6%

The company has a current ratio of 0.95, a quick ratio of 0.95 and a debt-to-equity ratio of 1.98. The firm’s 50 day simple moving average is $11.84 and its two-hundred day simple moving average is $13.06. The firm has a market cap of $1.64 billion, a price-to-earnings ratio of -3.53, a PEG ratio of 0.47 and a beta of 2.12.

Fortrea (NASDAQ:FTRE) last released its earnings results on Tuesday, May 5th. The company reported $0.16 EPS for the quarter, beating the consensus estimate of $0.03 by $0.13. Fortrea had a negative net margin of 16.50% and a positive return on equity of 9.51%. The firm had revenue of $636.50 million for the quarter, compared to analyst estimates of $628.51 million. On average, equities analysts forecast that Fortrea Holdings Inc. will post 0.8 EPS for the current year.

Insider Activity

In related news, CFO Jill G. Mcconnell sold 5,061 shares of the stock in a transaction that occurred on Tuesday, March 10th. The shares were sold at an average price of $9.07, for a total value of $45,903.27. Following the completion of the transaction, the chief financial officer owned 69,796 shares of the company’s stock, valued at $633,049.72. This represents a 6.76% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Over the last 90 days, insiders have sold 8,792 shares of company stock worth $80,014. Insiders own 0.73% of the company’s stock.

Hedge Funds Weigh In On Fortrea

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Essential Partners LLC lifted its stake in Fortrea by 140.2% in the 1st quarter. Essential Partners LLC now owns 9,675 shares of the company’s stock valued at $91,000 after purchasing an additional 5,647 shares during the last quarter. Amundi lifted its stake in Fortrea by 20.2% in the 1st quarter. Amundi now owns 12,490 shares of the company’s stock valued at $118,000 after purchasing an additional 2,101 shares during the last quarter. EverSource Wealth Advisors LLC lifted its stake in Fortrea by 9.5% in the 1st quarter. EverSource Wealth Advisors LLC now owns 10,936 shares of the company’s stock valued at $103,000 after purchasing an additional 953 shares during the last quarter. California State Teachers Retirement System lifted its stake in Fortrea by 51.3% in the 1st quarter. California State Teachers Retirement System now owns 132,369 shares of the company’s stock valued at $1,247,000 after purchasing an additional 44,882 shares during the last quarter. Finally, Eagle Health Investments LP lifted its stake in Fortrea by 7.3% in the 1st quarter. Eagle Health Investments LP now owns 1,307,560 shares of the company’s stock valued at $12,317,000 after purchasing an additional 89,000 shares during the last quarter.

Fortrea Company Profile

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.