The stock of Fortrea Holdings Inc (NASDAQ: FTRE) has increased by 3.75 when compared to last closing price of 22.15. Despite this, the company has experienced a 11.93% gain in its stock price over the last five trading sessions. seekingalpha.com reported 2024-08-12 that Fortrea Holdings Inc., a contract research organization, faces challenges including flattish sales, lack of earnings, and substantial leverage. Despite divesting assets to reduce leverage, the company continues to struggle with declining sales and margin pressure. Shares have plummeted to the high teens following a dismal second quarter earnings report, with lackluster performance and high debt levels contributing to uncertainty.
Is It Worth Investing in Fortrea Holdings Inc (NASDAQ: FTRE) Right Now?
FTRE has 36-month beta value of 0.55. Analysts have mixed views on the stock, with 1 analysts rating it as a “buy,” 3 as “overweight,” 7 as “hold,” and 1 as “sell.”
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The public float for FTRE is 89.28M, and currently, short sellers hold a 6.88% ratio of that float. The average trading volume of FTRE on September 19, 2024 was 1.39M shares.
FTRE’s Market Performance
FTRE stock saw an increase of 11.93% in the past week, with a monthly gain of 2.64% and a quarterly increase of -1.54%. The volatility ratio for the week is 3.69%, and the volatility levels for the last 30 days are 4.47% for Fortrea Holdings Inc (FTRE). The simple moving average for the last 20 days is 6.14% for FTRE stock, with a simple moving average of -24.22% for the last 200 days.
Analysts’ Opinion of FTRE
Many brokerage firms have already submitted their reports for FTRE stocks, with Evercore ISI repeating the rating for FTRE by listing it as a “In-line.” The predicted price for FTRE in the upcoming period, according to Evercore ISI is $27 based on the research report published on August 08, 2024 of the current year 2024.
Barclays, on the other hand, stated in their research note that they expect to see FTRE reach a price target of $30. The rating they have provided for FTRE stocks is “Equal Weight” according to the report published on July 24th, 2024.
Goldman gave a rating of “Neutral” to FTRE, setting the target price at $28 in the report published on June 06th of the current year.
FTRE Trading at -3.55% from the 50-Day Moving Average
After a stumble in the market that brought FTRE to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -43.98% of loss for the given period.
Volatility was left at 4.47%, however, over the last 30 days, the volatility rate increased by 3.69%, as shares surge +2.54% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -0.95% lower at present.
During the last 5 trading sessions, FTRE rose by +11.93%, which changed the moving average for the period of 200-days by -21.94% in comparison to the 20-day moving average, which settled at $21.68. In addition, Fortrea Holdings Inc saw -34.15% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at FTRE starting from Hanson James S., who purchase 2,000 shares at the price of $25.30 back on Jun 12 ’24. After this action, Hanson James S. now owns 7,475 shares of Fortrea Holdings Inc, valued at $50,600 using the latest closing price.
Pike Thomas, the Chief Executive Officer of Fortrea Holdings Inc, purchase 10,000 shares at $24.81 during a trade that took place back on May 29 ’24, which means that Pike Thomas is holding 57,827 shares at $248,066 based on the most recent closing price.
Stock Fundamentals for FTRE
Current profitability levels for the company are sitting at:
- -0.03 for the present operating margin
- 0.16 for the gross margin
The net margin for Fortrea Holdings Inc stands at -0.09. The total capital return value is set at -0.03. Equity return is now at value -14.21, with -5.76 for asset returns.
Based on Fortrea Holdings Inc (FTRE), the company’s capital structure generated 0.44 points at debt to capital in total, while cash flow to debt ratio is standing at 0.12. The debt to equity ratio resting at 0.78. The interest coverage ratio of the stock is -0.5.
Currently, EBITDA for the company is 190.7 million with net debt to EBITDA at 22.2. When we switch over and look at the enterprise to sales, we see a ratio of 1.09. The receivables turnover for the company is 4.51for trailing twelve months and the total asset turnover is 0.81. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.19.
Conclusion
To put it simply, Fortrea Holdings Inc (FTRE) has had a mixed performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
