Catalent, Inc. (NYSE:CTLT) Group President of Biologics, David McErlane, has sold a total of 1,994 shares of the company's common stock, according to a recent filing with the Securities and Exchange Commission. The transaction, which took place on September 26, resulted in proceeds exceeding $119,000.
The shares were sold at a volume-weighted average price of $59.97, within a price range of $59.89 to $60.03. This transaction was part of an automatic sell-to-cover process to fulfill tax withholding obligations that arose from the vesting of restricted stock units under the company's omnibus incentive plan. Notably, McErlane did not withhold or surrender any shares to Catalent as part of this transaction.
Following the sale, McErlane's direct ownership in the company stands at 36,304 shares, which includes restricted stock units (RSUs). The company has made it clear that full information regarding the number of shares sold at each separate price within the stated range will be provided upon request by the issuer, any security holder of the issuer, or the SEC staff.
Catalent, Inc., headquartered in Somerset, New Jersey, specializes in pharmaceutical preparations and remains a key player in the life sciences sector. This recent stock transaction provides investors with insight into the trading activities of the company's executives, which can be an indicator of their confidence in the company's current and future performance.
In other recent news, Catalent Inc . reported a strong fiscal year 2024, with Q4 earnings and revenue exceeding analyst predictions. The company's Q4 adjusted earnings per share were $0.65, with reported revenue at $1.30 billion, marking a 23% increase year-over-year. The Biologics segment of Catalent demonstrated significant growth, with revenue rising 51% year-over-year to $605 million. Additionally, the Pharma and Consumer Health segment revenue increased by 7% to $697 million. Adjusted EBITDA for the quarter more than doubled to $305 million, compared to the previous year. For the full fiscal year 2024, Catalent reported net revenue of $4.38 billion, a 3% increase from fiscal 2023. However, the company posted a net loss of $1.04 billion for the year, primarily due to goodwill impairment charges. In other recent developments, Baird has downgraded Catalent's stock from Outperform to Neutral, following operational difficulties and a pending buyout offer by Novo Holding. The $16.5 billion deal is expected to finalize by the end of 2024, marking another significant development for Catalent.
InvestingPro Insights
To complement the recent insider transaction at Catalent, Inc. (NYSE:CTLT), InvestingPro data offers additional context for investors. As of the latest available data, Catalent's market capitalization stands at $10.92 billion, reflecting its significant presence in the pharmaceutical preparations industry.
Despite the recent share sale by Group President of Biologics David McErlane, there are positive indicators for the company's financial outlook. An InvestingPro Tip highlights that net income is expected to grow this year, which could be a promising sign for shareholders. This aligns with another tip suggesting that analysts predict the company will be profitable this year, potentially reversing its current unprofitable status over the last twelve months.
Catalent's stock performance has been noteworthy, with a year-to-date price total return of 34.19% as of the most recent data. This strong performance is further emphasized by the fact that the stock is trading near its 52-week high, with the current price at 98.45% of that peak.
However, investors should note that Catalent does not pay a dividend to shareholders, which may be important for income-focused investors. Additionally, the company's valuation metrics suggest it may be trading at premium multiples, with InvestingPro Tips indicating high EBIT and EBITDA valuation multiples.
For those interested in a deeper dive into Catalent's financials and prospects, InvestingPro offers 8 additional tips beyond those mentioned here, providing a more comprehensive analysis for potential investors.
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