Is Catalent Inc. (NYSE:CTLT) Back In The Buying Zone?


The Vanguard Group, Inc. recently announced the acquisition of new stake in Catalent Inc. (NYSE:CTLT). The institutional investor has increased its shareholding in the Healthcare company by 6.84% to 14.44 million shares with purchase of 0.92 million shares. This fresh investment now brings its stake to 9.32% valued currently at $1.12 billion. In addition, BlackRock Fund Advisors raised its holdings by 0.33 million to 12.6 million shares. And JPMorgan Investment Management, I… has lifted its position by 9.46% or 0.52 million shares – to 6.04 million shares.

With over 0.61 million Catalent Inc. (CTLT) shares trading Monday and a closing price of $73.53 on the day, the dollar volume was approximately $44.95 million. The shares have shown a positive weekly performance of 0.64% and its price on 07/06/20 gained nearly 1.09%. Currently, there are 163.81M common shares owned by the public and among those 154.03M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 13 analysts who have offered their price forecasts for CTLT have a consensus price objective of $75.90. The analysts have set the share’s price value over the next 12 months at a high of $85.00 and a low of $62.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Catalent Inc. stock is 1.80 for the next 12 months. The average price target is 3.25% above its last price level and an upside to the estimated low will see the stock lose -18.6% over that period. But an upside of 13.49% will see the stock hit the forecast high price target while mean target price for the stock is $77.50.

Insiders at the company have transacted a total of 132 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 72 of these insider trades were purchases, accounting for 627,369 shares. Insider sales of the common stock occurred on 60 occasions, with total insider shares sold totaling 515,384 shares.

The top 3 mutual fund holders in Catalent Inc. are T Rowe Price Mid Cap Growth Fund, Janus Henderson Triton Fund, and Vanguard Total Stock Market Index. T Rowe Price Mid Cap Growth Fund owns 7.99 million shares of the company’s stock, all valued at over $621.39 million. The company sold 5800.0 shares recently to bring their total holdings to about 5.16% of the shares outstanding. Janus Henderson Triton Fund sold -0.59 million shares to see its total holdings shrink to 5.32 million shares valued at over $413.48 million and representing 3.43% of the shares outstanding. Vanguard Total Stock Market Index sold 19780.0 shares to bring its total holdings to over 4.46 million shares at a value of $346.85 million. Vanguard Total Stock Market Index now owns shares totaling to 2.88% of the shares outstanding.

Shares of Catalent Inc. (NYSE: CTLT) opened at $73.41, up $0.67 from a prior closing price of $72.74. However, the script later closed the day at $73.53, up 1.09%. The company’s stock has a 5-day price change of 0.64% and 50.28% over the past three months. CTLT shares are trading 30.60% year to date (YTD), with the 12-month market performance up to 32.58% higher. It has a 12-month low price of $31.04 and touched a high of $80.52 over the same period. Currently, 0.61 million shares have been traded, compared to an average intraday trading volume of 1.54 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 1.83%, 1.98%, and 27.66% respectively.

Institutional ownership of Catalent Inc. (NYSE: CTLT) shares accounts for 98.80% of the company’s 163.81M shares outstanding. Mutual fund holders own 35.90%, while other institutional holders and individual stakeholders account for 67.79% and 17.58% respectively.

It has a market capitalization of $12.07B and a beta (3y monthly) value of 1.61. The stock’s trailing 12-month PE ratio is 98.96, while the earnings-per-share (ttm) stands at $0.74. The company has a PEG of 10.80 and a Quick Ratio of 1.60 with the debt-to-equity ratio at 1.46. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.24% over the week and 2.66% over the month.

Analysts forecast that Catalent Inc. (CTLT) will achieve an EPS of $0.63 for the current quarter, $0.27 for the next quarter and $2.02 for 2021. The lowest estimate earnings-per-share for the quarter is $0.59 while analysts give the company a high EPS estimate of $0.7. Comparatively, EPS for the current quarter was $0.7 a year ago. Earnings per share for the fiscal year are expected to decrease by -0.60%, and 9.67% over the next financial year. EPS should shrink at an annualized rate of 9.17% over the next five years, compared to 30.50% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by several brokerage firm advisors rate Catalent Inc. (CTLT) as a “Strong Buy” at a consensus score of 1.80.

Looking at the support for the CTLT, a number of firms have released research notes about the stock. Argus stated their Buy rating for the stock in a research note on June 25, 2020, with the firm’s price target at $100. RBC Capital Mkts coverage for the Catalent Inc. (CTLT) stock in a research note released on April 21, 2020 offered a Outperform rating with a price target of $65. Deutsche Bank was of a view on March 02, 2020 that the stock is Hold, while Stephens gave the stock Overweight rating on October 17, 2019 $56. KeyBanc Capital Markets on their part issued Sector Weight rating on August 28, 2019.


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