Entities related to The Carlyle Group (NASDAQ:CG) Inc., a global investment firm, have reportedly sold a significant amount of shares in QuidelOrtho Corp (NASDAQ:QDEL), a leading provider of in vitro diagnostics. According to a recent filing, the sales amounted to over $3.2 million, with individual share prices ranging from $32.83 to $33.51.
The transactions, which took place on June 27 and 28, 2024, involved the sale of 46,380 shares at an average price of $33.51 on the first day, and a combined total of 49,937 shares on the second day at average prices of $32.83 and $33.18. These sales were executed under a Rule 10b5-1 trading plan, which allows company insiders to set up a predetermined schedule for buying and selling shares at a time when they are not in possession of material non-public information.
The entities involved in these transactions are part of a complex ownership structure, with Carlyle Partners VI Cayman Holdings, L.P. being the record holder of the shares. The Carlyle Group Inc., through its various subsidiaries and affiliates, including Carlyle Holdings II GP L.L.C., Carlyle Holdings II L.L.C., CG Subsidiary Holdings L.L.C., TC Group Cayman Investment Holdings, L.P., TC Group Cayman Investment Holdings Sub L.P., TC Group VI Cayman, L.L.C., and TC Group VI Cayman, L.P., may be deemed to share beneficial ownership of the securities.
Following the sales, the Carlyle-related entities still hold a substantial amount of QuidelOrtho Corp stock, with 11,520,751 shares remaining in their possession. The reported sales represent a divestiture of stock by the investment entities and provide liquidity for their investment holdings.
QuidelOrtho Corp, known for its diagnostic healthcare solutions, has not commented on the transactions. The sales come at a time when the company continues to navigate the healthcare industry, providing critical diagnostic technologies to the market. Investors and market watchers often monitor such insider transactions for insights into the company's financial health and the confidence level of its major investors.
In other recent news, QuidelOrtho reported a decrease in total revenue to $711 million for the first quarter of 2024, primarily due to a reduction in COVID-19 related sales. Despite this, the company experienced a 6% growth in other areas, excluding COVID-19 products. To enhance profitability, QuidelOrtho has initiated cost reduction measures, including significant headcount reductions, aiming to save around $100 million annually.
The newly appointed President and CEO, Brian Blaser, is focusing on customer satisfaction and improving market competitiveness. The company has suspended its financial guidance for the time being, allowing the new CEO to reassess the business.
In the meantime, QuidelOrtho expects an improvement in cash flow in the second half of 2024 and has revised its COVID-19 revenue forecast for the year to $150 million. However, the company reported a significant noncash goodwill impairment charge of $1.7 billion.
These are recent developments, and further updates will be provided later in the year after a comprehensive assessment by the new CEO.
InvestingPro Insights
In light of The Carlyle Group's recent sale of shares in QuidelOrtho Corp (NASDAQ:QDEL), investors may be seeking additional context to gauge the company's financial standing and future prospects. Here are some key insights from InvestingPro that could provide valuable information:
QuidelOrtho Corp currently has a market capitalization of $2.13 billion. Despite challenging market conditions, the company has maintained a high shareholder yield, which is a positive signal for investors looking for returns on their investments. This aligns with the InvestingPro Tip that QuidelOrtho operates with a significant debt burden, which is an important consideration for assessing the company's financial leverage and risk profile.
The company's price-to-earnings (P/E) ratio stands at -1.21, reflecting investor sentiment about its earnings potential. Additionally, the stock is trading near its 52-week low, which could indicate a potential entry point for value investors, as suggested by another InvestingPro Tip highlighting the stock being in oversold territory according to the Relative Strength Index (RSI).
On the earnings front, QuidelOrtho's situation appears to be a mixed bag. While 5 analysts have revised their earnings downwards for the upcoming period, another InvestingPro Tip points out that net income is expected to grow this year, and analysts predict the company will be profitable this year, which could signal a turnaround in its financial performance.
For readers looking to delve deeper into QuidelOrtho Corp's financials and future outlook, InvestingPro offers a range of additional tips. There are currently 11 more tips available, which can be accessed by visiting https://www.investing.com/pro/QDEL. Readers can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, providing a more comprehensive analysis and real-time data to inform their investment decisions.
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