Shares of Catalent, Inc. (NYSE:CTLT) recorded -0.38% loss during trading session on October 9th, 2018. The script traded as low as $43.57 and last traded at $44.00. 556550 shares changed exchanged hands during trading, a drop of -58998.05% from the 30-day average session volume of 941.74K shares. The firm had previously closed at $44.17. The company has $145.60M outstanding shares, a price-to-earnings ratio of 46.91, price-to-earnings-growth ratio of 2.60 and a beta of 1.41. The company has a RSI of 54.88, ATR of 0.92 and a volatility of 2.36% this week. CTLT has a 52 week low price of $36.73 and a 52 week high price of $47.87.
Investors have identified the tech company Catalent, Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around 6.41B, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Catalent, Inc. (CTLT) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For CTLT, the company has in raw cash 410.2 million on their books with 71.9 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 4.53 billion total, with 3.44 billion as their total liabilities. This figure have given the company a good sense of viability under numerous contexts.
CTLT were able to record 44.5 million as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 18.7 million. In cash movements, the company had a total of 103.3 million as operating cash flow.
Potential earnings growth for Catalent, Inc. (CTLT)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Catalent, Inc. recorded a total of 685.3 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 0.11 coming in sequential stages and their sales for the third quarter increasing by 0.09.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 451.9 million trying to sell their products during the last quarter, with the result yielding a gross income of 233.4 million. This allows shareholders to hold on to 135.1 million with the revenue now reading 0.61 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (0.39 cents a share).
Is the stock of CTLT attractive?
Having a look at the company’s valuation, the company is expected to record 1.95 total earnings per share during the next fiscal year. Taking a look at the median price to earnings ratio, this means their stock price will be in the region of 21.27 per share. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on CTLT sounds very interesting.
In related news, Chair, President & CEO Chiminski John R sold 130,545 shares of the company’s stock in a transaction that recorded on October 1st, 2018. The sale was performed at an average price of 45.32, for a total value of 5,916,299. As the sale deal closes, the Director Chiminski John R now bought 10,000 shares of the company’s stock, valued at 430,000. Also, SVP & General Counsel Fasman Steven L sold 2,252 shares of the company’s stock in a deal that was recorded on June 20th, 2018. The shares were sold at an average price of 41.78 per share, with a total market value of 43,316. Following this completion of acquisition, the SVP, Global Sales & Marketing now holds 9,082 shares of the company’s stock, valued at 379,628. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.50%.
2 out of 12 analysts covering the stock have rated it a Buy, while 2 have maintained a Hold recommendation on Catalent, Inc. stock. 0 analysts has assigned a Sell rating on the CTLT stock. The 12-month mean consensus price target for the company’s shares has been set at $47.50.