Fortrea (NASDAQ:FTRE) Shares Gap Up – Still a Buy?

Fortrea Holdings Inc. (NASDAQ:FTRE) shares gapped up prior to trading on Tuesday . The stock had previously closed at $19.20, but opened at $20.25. Fortrea shares last traded at $20.6360, with a volume of 217,928 shares changing hands.

Analysts Set New Price Targets

FTRE has been the subject of a number of analyst reports. TD Cowen reiterated a “buy” rating on shares of Fortrea in a research report on Wednesday, May 6th. Mizuho lifted their price objective on shares of Fortrea from $13.00 to $16.00 and gave the company a “neutral” rating in a research note on Monday, July 13th. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating and issued a $14.00 price objective on shares of Fortrea in a report on Thursday, May 7th. Wall Street Zen lowered shares of Fortrea from a “buy” rating to a “hold” rating in a research report on Tuesday, July 21st. Finally, Citigroup raised their target price on shares of Fortrea from $16.00 to $20.00 and gave the company a “buy” rating in a research note on Wednesday, May 6th. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $17.75.

Fortrea Price Performance

The business has a 50-day simple moving average of $16.54 and a two-hundred day simple moving average of $13.74. The company has a quick ratio of 0.95, a current ratio of 0.95 and a debt-to-equity ratio of 1.98. The stock has a market capitalization of $1.98 billion, a price-to-earnings ratio of -4.26, a P/E/G ratio of 0.59 and a beta of 2.03.

Fortrea (NASDAQ:FTRE) last issued its quarterly earnings results on Tuesday, May 5th. The company reported $0.16 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.03 by $0.13. Fortrea had a positive return on equity of 9.51% and a negative net margin of 16.50%.The company had revenue of $636.50 million for the quarter, compared to analysts’ expectations of $628.50 million. As a group, research analysts predict that Fortrea Holdings Inc. will post 0.8 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in FTRE. Larson Financial Group LLC boosted its stake in shares of Fortrea by 136.7% during the 4th 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 in the last quarter. Toronto Dominion Bank acquired a new position in Fortrea in the 4th quarter worth approximately $51,000. Mirae Asset Global Investments Co. Ltd. grew its position in Fortrea by 27.9% during the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 4,490 shares of the company’s stock worth $77,000 after purchasing an additional 980 shares in the last quarter. Allworth Financial LP lifted its holdings in shares of Fortrea by 19.6% in the third quarter. Allworth Financial LP now owns 6,769 shares of the company’s stock valued at $57,000 after purchasing an additional 1,109 shares in the last quarter. Finally, Osaic Holdings Inc. boosted its position in shares of Fortrea by 74.3% in the second quarter. Osaic Holdings Inc. now owns 6,844 shares of the company’s stock worth $38,000 after buying an additional 2,918 shares during the period.

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.