Entities associated with the Carlyle Group (NASDAQ:CG) Inc. have sold a significant number of shares in QuidelOrtho Corp (NASDAQ:QDEL), a company specializing in in vitro and in vivo diagnostic substances. The sales, which took place on July 12 and July 15, 2024, amounted to a total of over $4.8 million.
The transactions were carried out in multiple tranches with prices for the shares ranging between $31.6896 and $32.4089. On July 12, a total of 47,222 shares were sold at an average price of $31.7063, and 52,531 shares at an average price of $32.4089. Two days later, on July 15, another set of transactions saw 90,507 shares sold at an average price of $31.6896, and 2,680 shares at an average price of $32.1535.
The entities involved in these transactions are part of a complex ownership structure leading up to the Carlyle Group Inc., which may be deemed to share beneficial ownership of the securities held. The intricate web includes 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., TC Group VI Cayman, L.P., and Carlyle Partners VI Cayman Holdings, L.P.
The sales were conducted in accordance with a Rule 10b5-1 trading plan, which was adopted on May 12, 2024. This allows insiders to sell shares over a predetermined period of time, reducing the potential for any accusations of trading on insider information.
Following these transactions, the entities still hold a significant number of shares in QuidelOrtho Corp. The remaining ownership amounts to millions of shares, indicating a continued stake in the company's future performance.
Investors keeping an eye on insider activity may take note of these sales, as they represent a substantial divestment from a key stakeholder in QuidelOrtho Corp.
In other recent news, QuidelOrtho experienced mixed results in Q1 2024, with a decrease in total revenue to $711 million primarily due to a decline in COVID-19 related sales. However, excluding COVID-19 products, the company witnessed growth in other areas, with notable expansion in Point-of-Care and Molecular Diagnostics segments. Amid these developments, the company is undergoing a cost reduction phase, including significant headcount cuts, aimed at saving $100 million annually.
Brian Blaser, the newly appointed President and CEO, is focusing on enhancing customer satisfaction, profitability, and market competitiveness. QuidelOrtho has currently suspended its financial guidance to allow the new CEO to reassess the business and strategize for the remainder of the year.
The company anticipates an improvement in cash flow in the second half of 2024 and has adjusted its COVID-19 revenue forecast for the year to $150 million. Despite a significant noncash goodwill impairment charge of $1.7 billion for the North America reporting unit, the company is optimistic about expanding product offerings and investing in the Chinese market. These are the recent developments within the company.
InvestingPro Insights
Amid the news of Carlyle Group Inc.'s divestment from QuidelOrtho Corp (NASDAQ:QDEL), investors may find the following InvestingPro data points particularly insightful. As of the latest metrics, QuidelOrtho's market capitalization stands at approximately $2.29 billion. The company's P/E ratio, often used to gauge the value of a stock, is currently negative at -1.28, indicating that the company has been reporting losses. Additionally, the company's stock has experienced significant volatility, with a one-week total price return of 13.99%, yet a six-month total price return of -51.7%.
Turning to InvestingPro Tips, it's noteworthy that QuidelOrtho operates with a significant debt burden, which can be a critical factor for investors considering the financial health of the company. Moreover, despite not being profitable over the last twelve months, analysts predict that the company will be profitable this year. This juxtaposition of past performance versus future expectations may influence investment decisions.
For those looking for more in-depth analysis, InvestingPro offers additional tips on QuidelOrtho Corp, including insights into earnings revisions by analysts and shareholder yield. To explore these tips and how they may impact your investment strategy, visit https://www.investing.com/pro/QDEL and take advantage of the promo code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. Note that there are 5 more InvestingPro Tips available, offering a comprehensive view of QuidelOrtho's financial landscape.
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