JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
Thomas Pike, Chief Executive Officer of Fortrea Holdings Inc. (NASDAQ:FTRE), has sold a portion of his holdings in the company. According to a recent SEC filing, Pike sold 11,268 shares of common stock on January 13, 2025, at an average price of $18.04 per share, resulting in a total transaction value of approximately $203,274. The transaction comes as Fortrea's stock, currently trading at $17.64, has declined 8.65% over the past week. InvestingPro analysis suggests the stock is currently undervalued, with additional insights available in their comprehensive Pro Research Report.
The sale was conducted to cover tax withholding obligations related to the vesting of Restricted Stock Units (RSUs), as mandated by Fortrea's equity incentive plans. This transaction was not a discretionary trade by Pike but rather a "sell to cover" arrangement required by the issuer.
Additionally, on January 10, 2025, Pike acquired 40,220 shares of common stock through the vesting of RSUs, which were converted from RSUs originally granted by Laboratory Corporation of America (NYSE:LH) Holdings (Labcorp) following Fortrea's spin-off. These RSUs were settled into common stock at no cost to Pike. Following these transactions, Pike holds 159,868 shares of Fortrea common stock.
In other recent news, Fortrea has experienced mixed fortunes. The company's third-quarter earnings report revealed a 5.4% decrease in year-over-year revenue to $674.9 million, but also a strong book-to-bill ratio of 1.23 and a 6.2% growth in backlog to $7.6 billion. Analysts from Baird and TD Cowen have responded to these developments with varied adjustments to their ratings and price targets. Baird downgraded Fortrea from Outperform to Neutral, citing concerns such as the cancellation of two conferences and a non-deal roadshow. On the other hand, TD Cowen maintained a Hold rating but increased the stock's price target to $25, reflecting a positive outlook on the company's future business opportunities.
These recent developments have occurred amidst speculation about Fortrea's potential as a merger and acquisition target. However, both Baird and Citi have adopted a cautious stance, with Citi downgrading the company from Buy to Neutral and reducing the price target to $23. Despite the current challenges, analysts project that Fortrea will achieve profitability this year. The company currently generates $2.98 billion in annual revenue and is expected to maintain a book-to-bill ratio of 1.2 in the second half of 2024.
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