Fortrea Stock Upgraded as Analysts Boost Ratings and Targets

Fortrea (NASDAQ: FTRE) has received a significant boost in its stock rating, moving from a “hold” to a “buy” according to a report by Wall Street Zen issued on Sunday. This upgrade reflects a growing optimism among various research analysts regarding the company’s future performance.

Several notable investment firms have recently updated their assessments of Fortrea. Barclays raised its price target from $6.00 to $8.00, maintaining an “underweight” rating as of October 2. In contrast, Robert W. Baird has increased its price target dramatically from $9.00 to $14.00, assigning an “outperform” rating in a report released on September 3. Meanwhile, Zacks Research upgraded Fortrea’s rating from “hold” to “strong-buy” on October 7, while Citigroup reiterated a “neutral” rating on the same day. Weiss Ratings issued a “sell (D-)” rating on October 8.

Overall, the consensus among analysts shows that Fortrea currently holds a “Hold” rating with an average target price of $12.39, according to data from MarketBeat.com. The mix of ratings indicates some analysts are optimistic about the company’s potential, while others remain cautious.

Recent Financial Performance

Fortrea’s recent quarterly earnings reflect the company’s ongoing challenges and opportunities. On May 24, the company reported earnings per share (EPS) of $0.37 for the quarter, alongside a negative net margin of 37.57%. Despite these hurdles, Fortrea achieved revenue of $693.90 million during this period. Analysts forecast that Fortrea will post an EPS of $0.51 for the current year, indicating a potential recovery ahead.

Insider Trading Activity

In related developments, insider trading activity has also captured attention. Chief Financial Officer Jill G. Mcconnell sold 4,886 shares of Fortrea on August 19, with the shares traded at an average price of $8.01, amounting to a total of $39,136.86. Following this transaction, Mcconnell’s ownership decreased by 8.19%, leaving her with 54,770 shares valued at approximately $438,707.70.

Conversely, Director Erin L. Russell purchased 9,854 shares on September 2 at an average price of $10.15, totaling $100,018.10. This acquisition represents a significant increase in Russell’s stake, now fully owned shares valued at the same amount.

In the last quarter, insiders collectively acquired 72,354 shares worth $507,168 while selling 10,311 shares for $94,635. Notably, corporate insiders own 0.38% of the company’s stock.

Institutional Investor Activity

Institutional investors have also begun to adjust their holdings in Fortrea. Allworth Financial LP significantly increased its position by an astounding 6,802.4% in the second quarter, now owning 5,660 shares valued at $28,000. Similarly, Brooklyn Investment Group raised its stake by 9,577.5% in the first quarter, now holding 3,871 shares valued at $29,000.

Osaic Holdings Inc. boosted its holdings by 74.3% in the second quarter, bringing its total to 6,844 shares valued at $38,000. Caitong International Asset Management Co. Ltd. purchased a new stake valued at about $39,000 in the first quarter, while Tower Research Capital LLC TRC raised its position by 137.0% during the same period.

About Fortrea

Fortrea Holdings Inc. operates as a contract research organization, specializing in biopharmaceutical product and medical device development services globally. The company is structured into two segments: Clinical Services and Enabling Services, with the former offering a range of clinical pharmacology and development support.

As Fortrea continues to navigate its challenges and capitalize on growth opportunities, the evolving analyst ratings and recent insider trading activities underline a dynamic landscape for investors and stakeholders alike. The coming months will be crucial in determining whether Fortrea can leverage these insights into sustained financial performance.