Fortrea Holdings (FTRE) Plunges 10.21% to Record Low on Earnings Miss, Short Interest Surge

Fortrea Holdings (FTRE) shares plummeted 10.21% intraday, marking a record low and extending its losing streak to four consecutive days, with a cumulative decline of 24.10% over the past four days.

One of the primary factors influencing the recent decline in Fortrea Holdings' stock price is the significant increase in short interest. The short interest for Fortrea Holdings Inc. has risen by 19.7%, indicating that investors are increasingly bearish on the stock and expect its price to fall further.

Additionally, insider activity has also played a role in the stock's performance. The CEO, Thomas Pike, sold 11,268 shares of Fortrea stock, which may have contributed to a decrease in investor confidence. Over the last three months, insider sales totaled 13,029 shares valued at $226,168, further raising concerns about the company's prospects.

Fortrea Holdings' recent earnings report also failed to impress investors. The company reported quarterly earnings of $0.18 per share, falling short of analysts' consensus estimates of $0.36. Furthermore, the company's negative net margin of 10.99% and revenue below expectations have added to the negative sentiment surrounding the stock.

Analysts have also revised their price targets for Fortrea Holdings, reflecting a more cautious outlook. Barclays reduced their target from $25.00 to $12.00, Evercore ISI from $20.00 to $15.00, and The Goldman Sachs Group from $22.00 to $11.00. These downgrades have contributed to the overall bearish sentiment and may continue to weigh on the stock price in the near term.