Entities affiliated with the Carlyle Group (NASDAQ:CG) Inc. have recently sold a significant amount of shares in QuidelOrtho Corp (NASDAQ:QDEL), a leading provider of diagnostic healthcare solutions. The transactions, which took place on June 25th and 26th, amounted to a total of over $4.9 million.
The shares were sold in multiple transactions with prices ranging from $32.893 to $33.2731 per share. On June 25th, a total of 41,299 shares were sold at an average price of $32.893, and another 26,173 shares were sold at an average price of $33.1981. The following day, 17,568 shares were sold at an average price of $32.8964, and 63,914 shares at an average price of $33.2731.
These sales were conducted in accordance with a Rule 10b5-1 trading plan, which was adopted on May 12, 2024. The plan allows major holders to sell shares at predetermined times to avoid accusations of insider trading.
The entities involved in the sale include Carlyle Group Inc., 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., and several others which are interconnected through a series of management and partnership structures. Despite the sale, these entities may still be deemed to share beneficial ownership of a significant number of QuidelOrtho shares.
QuidelOrtho Corp has not yet made any public comments regarding the transactions. Investors and market watchers will likely follow any further developments closely, as sales of this magnitude can sometimes indicate strategic shifts or insights from major stakeholders.
In other recent news, QuidelOrtho reported mixed results for Q1 2024, with total revenue decreasing to $711 million primarily due to a reduction in COVID-19 related sales. Despite this, the company saw a 6% growth in revenue excluding COVID-19 products, particularly in the Point-of-Care and Molecular Diagnostics segments. As part of a cost reduction strategy, significant headcount reductions are being implemented, expected to save around $100 million annually.
Brian Blaser, the newly appointed President and CEO, is focusing on enhancing customer satisfaction, profitability, and market competitiveness. In line with this, financial guidance has been temporarily suspended for reassessment and strategizing.
The company has recorded a noncash goodwill impairment charge of $1.7 billion and expects an improvement in cash flow in the second half of 2024. Notably, QuidelOrtho has revised its COVID-19 revenue forecast for the year to $150 million. These are some of the recent developments shaping QuidelOrtho's present and future operations.
InvestingPro Insights
In light of the recent share sales by entities affiliated with Carlyle Group Inc., investors in QuidelOrtho Corp (NASDAQ:QDEL) may be seeking deeper insights into the company's financial health and market performance. According to InvestingPro data, QuidelOrtho has an adjusted market capitalization of $2.25 billion USD. Despite a challenging market environment, the company's gross profit margin remains strong at 48.13% for the last twelve months as of Q1 2024. However, revenue has seen a decline of 7.95% during the same period.
InvestingPro Tips highlight that QuidelOrtho operates with a significant debt burden and has not been profitable over the last twelve months. Analysts have revised their earnings downwards for the upcoming period, reflecting potential concerns about the company's future profitability. On a more positive note, the company's net income is expected to grow this year, and the stock is currently trading near its 52-week low, which some investors might consider an entry point, especially as the RSI suggests the stock is in oversold territory.
For those looking to delve deeper into QuidelOrtho's financials and stock performance, there are additional InvestingPro Tips available at https://www.investing.com/pro/QDEL. Subscribers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which includes access to comprehensive analysis, including 11 additional tips for QuidelOrtho Corp.
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