Catalent Inc. (NYSE: CTLT) stock fell -5.74% on Tuesday to $49.57 against a previous-day closing price of $52.59. With 2.93 million shares changed hands, the volume of the stock remained lighter than its average volume of 3.35 million shares. During the session, the Drug Manufacturers – Specialty & Generic company that operates in wider Healthcare sector, reached to the highest price of $53.00 whereas the lowest price it dropped to was $49.12. The 52-week range on CTLT shows that it touched its highest point at $115.33 and its lowest point at $40.69 during that stretch. It currently has a 1-year price target of $69.50. Beta for the stock currently stands at 1.23.
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 up-trending over the past week, with a rise of 3.36%, but this was up by 14.09% over a month. Three-month performance dropped to -26.70% while six-month performance fell -54.07%. The stock lost -51.44% in the past year, while it has gained 10.13% so far this year. A look at the trailing 12-month EPS for CTLT yields 2.34 with Next year EPS estimates of 3.66. For the next quarter, that number is 0.69. This implies an EPS growth rate of -9.20% for this year and 14.54% for next year. EPS is expected to grow by 8.49% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 26.70%.
Float and Shares Shorts:
At present, 180.00 million CTLT shares are outstanding with a float of 179.31 million shares on hand for trading. On Oct 13, 2022, short shares totaled 4.3 million, which was 2.39% higher than short shares on Sep 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 102.58% of CTLT’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 60.52% of CTLT, in contrast to 38.93% held by mutual funds. Shares owned by individuals account for 17.77%. As the largest shareholder in CTLT with 10.33% of the stake, The Vanguard Group, Inc. holds 18,508,779 shares worth 18,508,779. A second-largest stockholder of CTLT, T. Rowe Price Investment Manageme, holds 18,420,356 shares, controlling over 10.28% of the firm’s shares. Capital Research & Management Co is the third largest shareholder in CTLT, holding 11,409,408 shares or 6.37% stake. With a 2.91% stake in CTLT, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 5,207,680 shares are owned by the mutual fund manager. The T Rowe Price Mid Cap Growth Fund, which owns about 2.87% of CTLT stock, is the second-largest Mutual Fund holder. It holds 5,149,200 shares valued at 231.77 million. American Funds New Perspective Fu holds 2.61% of the stake in CTLT, owning 4,681,670 shares worth 210.72 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 8 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 4 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 $100.00 and a low target of $44.00, the average target price over the next 12 months is $70.64. Based on these targets, CTLT could surge 101.73% to reach the target high and fall by -11.24% to reach the target low. Reaching the average price target will result in a growth of 42.51% 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 2023 earnings on 08/28/2023. Analysts have provided yearly estimates in a range of $3.75 being high and $2.85 being low. For CTLT, this leads to a yearly average estimate of $3.23. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Catalent Inc. surprised analysts by -$0.22 when it reported $0.34 EPS against a consensus estimate of $0.56. The surprise factor in the prior quarter was $0.04. Based on analyst estimates, the high estimate for the next quarter is $0.83 and the low estimate is $0.56. The average estimate for the next quarter is thus $0.69.
Summary of Insider Activity:
Insiders traded CTLT stock several times over the past three months with 12 Buys and 3 Sells. In these transactions, 49,788 shares were bought while 3,652 shares were sold. The number of buy transactions has increased to 47 while that of sell transactions has risen to 45 over the past year. The total number of shares bought during that period was 315,487 while 592,590 shares were sold.