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Joseph Anthony Ferraro, Senior Vice President, General Counsel, and Chief Compliance Officer at Catalent, Inc. (NYSE:CTLT), has sold 320 shares of the company's common stock. The shares were sold on October 18 at a volume-weighted average price of $59.97, resulting in a total transaction value of approximately $19,190.
The transaction was executed as an automatic sell-to-cover to address tax withholding obligations related to the vesting of restricted stock units under Catalent's omnibus incentive plan. Following this sale, Ferraro retains ownership of 23,967 shares, including restricted stock units.
In other recent news, Catalent Inc . has reaffirmed its commitment to service and innovation following its pending acquisition by Novo Holdings. The company has emphasized its dedication to its customers, ensuring that their products and proprietary information will remain a priority. Catalent's CEO, Alessandro Maselli, has confirmed he will stay on post-acquisition, citing Novo Holdings' commitment to supporting Catalent's growth as a key factor in his decision.
Simultaneously, Catalent has agreed to sell its Somerset, New Jersey facility to Ardena, a private contract drug manufacturer, with the transaction set to complete in early 2025. The company reported a 23% year-over-year increase in revenue for the fourth quarter, reaching $1.30 billion, and the Biologics segment demonstrated robust growth with a 51% year-over-year increase in revenue. However, Catalent posted a net loss of $1.04 billion for the fiscal year 2024, mainly due to goodwill impairment charges.
In analyst news, Baird downgraded Catalent's stock from Outperform to Neutral, citing operational difficulties and a decrease in revenue and profit in the fiscal year 2023. U.S. Senator Elizabeth Warren and competitor Eli Lilly (NYSE:LLY) have raised antitrust concerns over Novo Holdings' acquisition of Catalent for $16.5 billion. These are the recent developments within the company.
InvestingPro Insights
As Joseph Anthony Ferraro's recent stock sale aligns with tax obligations, it's worth examining Catalent's current financial position. According to InvestingPro data, Catalent boasts a substantial market capitalization of $10.94 billion, reflecting its significant presence in the pharmaceutical industry.
InvestingPro Tips highlight that Catalent's net income is expected to grow this year, and analysts predict the company will be profitable. This positive outlook could explain why the stock is trading near its 52-week high, with a price that's 98.55% of its 52-week peak.
Despite recent challenges, Catalent's revenue for the last twelve months stands at $4.38 billion, with a quarterly revenue growth of 23.32% in the most recent quarter. This growth trajectory aligns with the company's position as a leading global provider of advanced delivery technologies and development solutions.
It's noteworthy that while Catalent doesn't pay a dividend, it generally trades with low price volatility, which may appeal to investors seeking stability. The company's liquid assets exceeding short-term obligations also indicate a strong financial foundation.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for Catalent, providing deeper insights into the company's financial health and market position.
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