Catalent Inc. (NYSE: CTLT) stock jumped 0.60% on Friday to $109.40 against a previous-day closing price of $108.75. With 1.04 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.1 million shares. During the session, the Drug Manufacturers – Specialty & Generic company that operates in wider Healthcare sector, reached to the highest price of $109.69 whereas the lowest price it dropped to was $107.65. The 52-week range on CTLT shows that it touched its highest point at $142.64 and its lowest point at $86.34 during that stretch. It currently has a 1-year price target of $137.23. Beta for the stock currently stands at 1.30.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of CTLT was down-trending over the past week, with a drop of -2.22%, but this was up by 0.18% over a month. Three-month performance surged to 5.11% while six-month performance rose 3.02%. The stock lost -10.98% in the past year, while it has lost -14.55% so far this year. A look at the trailing 12-month EPS for CTLT yields 2.78 with Next year EPS estimates of 4.13. For the next quarter, that number is 1.15. This implies an EPS growth rate of 174.00% for this year and 9.76% for next year. EPS is expected to grow by 15.50% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 28.60%.
Float and Shares Shorts:
At present, 180.00 million CTLT shares are outstanding with a float of 178.76 million shares on hand for trading. On Jul 14, 2022, short shares totaled 3.92 million, which was 2.19% higher than short shares on Jun 14, 2022. In addition to Mr. John R. Chiminski as the firm’s Exec. Chair of the Board, Mr. Alessandro Maselli serves as its CEO & Director.
Through their ownership of 109.45% of CTLT’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 62.10% of CTLT, in contrast to 36.68% held by mutual funds. Shares owned by individuals account for 17.65%. As the largest shareholder in CTLT with 11.32% of the stake, T. Rowe Price Associates, Inc. holds 20,292,041 shares worth 20,292,041. A second-largest stockholder of CTLT, The Vanguard Group, Inc., holds 18,276,193 shares, controlling over 10.20% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in CTLT, holding 9,272,671 shares or 5.17% stake. With a 3.85% stake in CTLT, the T Rowe Price Mid Cap Growth Fund is the largest stakeholder. A total of 6,900,000 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.80% of CTLT stock, is the second-largest Mutual Fund holder. It holds 5,024,242 shares valued at 539.05 million. Vanguard 500 Index Fund holds 2.21% of the stake in CTLT, owning 3,965,895 shares worth 425.5 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CTLT since 16 analysts follow the stock currently. There are 11 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 2 believe that the stock is worth HOLDING, 3 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With CTLT analysts setting a high price target of $160.00 and a low target of $110.00, the average target price over the next 12 months is $140.83. Based on these targets, CTLT could surge 46.25% to reach the target high and rise by 0.55% to reach the target low. Reaching the average price target will result in a growth of 28.73% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. CTLT will report FY 2022 earnings on 08/28/2023. Analysts have provided yearly estimates in a range of $3.85 being high and $3.70 being low. For CTLT, this leads to a yearly average estimate of $3.80. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Catalent Inc. surprised analysts by $0.10 when it reported $1.04 EPS against a consensus estimate of $0.94. The surprise factor in the prior quarter was $0.07. Based on analyst estimates, the high estimate for the next quarter is $1.20 and the low estimate is $1.05. The average estimate for the next quarter is thus $1.14.
Summary of Insider Activity:
Insiders traded CTLT stock several times over the past three months with 2 Buys and 3 Sells. In these transactions, 21,493 shares were bought while 5,118 shares were sold. The number of buy transactions has increased to 46 while that of sell transactions has risen to 58 over the past year. The total number of shares bought during that period was 8,159,785 while 3,799,519 shares were sold.