Entities associated with the investment firm Carlyle Group (NASDAQ:CG) Inc. executed a series of transactions involving the sale of QuidelOrtho Corp (NASDAQ:QDEL) stock, totaling over $5.5 million. The sales were conducted over two days, with share prices ranging from $31.7621 to $35.0343.
On July 16, 2024, a total of 67,361 shares were sold at a weighted average price of $31.7621, while another 25,995 shares were disposed of at an average of $32.309. Additional transactions included the sale of 47,839 shares at $33.5203 and 14,291 shares at $34.13. The following day, on July 17, the entities sold 65,670 shares at a weighted average price of $34.7927 and a smaller batch of 3,967 shares at $35.0343.
The sales were carried out in accordance with a Rule 10b5-1 trading plan, which had been adopted on May 12, 2024. The plan allows corporate insiders to set up a predetermined schedule to buy or sell company stocks at a time when they are not in possession of material non-public information. This mechanism is designed to prevent accusations of insider trading.
The entities involved in these transactions include Carlyle Partners VI Cayman Holdings, L.P., and several other holding and subsidiary entities, all of which fall under the Carlyle Group's extensive umbrella. These entities may be deemed to share beneficial ownership of the securities held of record by Carlyle Partners VI Cayman Holdings, L.P.
Following the sales, the entities still hold a substantial number of QuidelOrtho Corp shares, with the ownership reflecting a complex structure of holdings and partnerships. The series of transactions underscores the intricate relationships and investment strategies that firms like Carlyle Group Inc. employ to manage their holdings in various companies.
Investors and market watchers often look to the buying and selling activities of major stakeholders like Carlyle Group entities to gauge market sentiment and potential shifts in company ownership. These latest transactions provide a glimpse into the ongoing adjustments of investment portfolios among some of the market's key players.
In other recent news, QuidelOrtho reported mixed results for Q1 2024, with total revenue decreasing to $711 million due to a drop in COVID-19 related sales. However, the company saw a 6% growth in revenue, excluding COVID-19 products, particularly in its Point-of-Care and Molecular Diagnostics segments. Amid these developments, QuidelOrtho is undergoing significant cost reduction measures, including headcount reductions, projected to save around $100 million annually.
Newly appointed President and CEO Brian Blaser is focusing on enhancing customer satisfaction, profitability, and market competitiveness. As part of this strategy, the company has suspended its financial guidance to allow for a comprehensive reassessment of the business. Despite these adjustments, QuidelOrtho anticipates an improvement in cash flow in the latter half of 2024 and has revised its COVID-19 revenue forecast for the year to $150 million.
These are among the recent developments for QuidelOrtho. No conclusions or summaries should be drawn from this information, as it merely reports the factual details of the company's current situation.
InvestingPro Insights
As Carlyle Group Inc. manages its substantial stake in QuidelOrtho Corp (NASDAQ:QDEL), investors may find it valuable to consider several key metrics and insights from InvestingPro. QuidelOrtho, with a market capitalization of $2.24 billion, has been navigating through a challenging period, as reflected in its recent stock performance and financial data.
InvestingPro Data shows that the company's Price to Earnings (P/E) Ratio stands at -1.28, indicating that the company has been reporting negative earnings. This is further emphasized by an adjusted P/E Ratio for the last twelve months as of Q1 2024 at -9.23. Additionally, the company's Revenue Growth for the same period was down by 7.95%, with a more pronounced quarterly revenue decrease of 15.97% in Q1 2024.
On the positive side, QuidelOrtho's Gross Profit Margin remains strong at 48.13%, suggesting that despite revenue challenges, the company maintains a significant margin on its products and services. Furthermore, the company's stock has experienced a significant return over the last week, with a 10.71% price total return, signaling potential investor optimism or a market correction after previous declines.
InvestingPro Tips highlight that QuidelOrtho is expected to become profitable this year and offers a high shareholder yield. However, it is important to note that the company does not pay dividends, which may influence the investment strategy of those seeking regular income from their holdings. Additionally, the fact that 5 analysts have revised their earnings estimates downwards for the upcoming period suggests that investors should keep a close eye on future earnings reports and company guidance.
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