Medpace stock hits 52-week low at $301.33 amid market challenges

Published 31/03/2025, 15:02
Medpace stock hits 52-week low at $301.33 amid market challenges

In a challenging market environment, Medpace Holdings Inc . (NASDAQ:MEDP) stock has touched a 52-week low, reaching a price level of $301.33. According to InvestingPro data, the company maintains a GREAT financial health score, with robust revenue growth of ~12% and an impressive 58% return on equity. The clinical contract research organization has seen its shares retreat significantly over the past year, reflecting a broader downturn in the healthcare sector. Investors have been cautious as the company navigates through a period of uncertainty, which has been reflected in the stock’s performance with a 1-year change showing a notable decline of -25.76%. However, InvestingPro analysis suggests the stock is currently undervalued, with analyst price targets indicating potential upside. This downturn represents a considerable shift for shareholders who have witnessed the stock struggle to maintain its previous momentum in a volatile market landscape. Notably, InvestingPro reveals that management has been actively buying back shares, demonstrating confidence in the company’s future prospects. Get access to 8 more exclusive InvestingPro Tips and comprehensive analysis in the Pro Research Report.

In other recent news, Medpace Holdings, Inc. reported fourth-quarter earnings that exceeded analyst expectations, with adjusted earnings per share of $3.67 compared to the consensus estimate of $2.94. The company also reported revenue of $536.6 million, slightly surpassing the projected $534.86 million and marking a 7.7% increase from the previous year’s same quarter. However, Medpace’s 2025 revenue guidance, ranging from $2.11 billion to $2.21 billion, fell short of the $2.238 billion anticipated by analysts, causing concern among investors. The company’s net new business awards for the fourth quarter were $529.7 million, reflecting a 13.8% year-over-year decline, and resulting in a net book-to-bill ratio of 0.99x. Despite this, Medpace’s backlog rose by 3.2% to $2.90 billion as of the end of 2024. Additionally, the company announced a $600 million increase to its stock repurchase program, having already repurchased 527,160 shares at an average price of $330.43 per share, totaling $174.2 million during the fourth quarter. CEO August Troendle noted a cautious approach to the 2025 outlook due to economic uncertainties.

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