Bullish indicating open at $55-$60, IPO prices at $37
WEST LAFAYETTE, IN – Inotiv, Inc. (NASDAQ:NOTV), a commercial physical and biological research services company currently valued at $89.58 million, announced today that its shareholders have approved an amendment to increase the number of shares in its equity incentive plan. According to InvestingPro analysis, the company’s stock is currently trading at $2.62 and appears undervalued based on its Fair Value assessment. The amendment to the 2024 Equity Incentive Plan, which was previously approved by the Board on January 15, 2025, became effective immediately upon shareholder approval.
The amendment, detailed in the company’s proxy statement filed on January 23, 2025, increases the shares available for issuance under the plan by an additional 2,250,000. This decision was made during Inotiv’s annual shareholder meeting held today, where a total of 22,140,323 shares were represented.
At the same meeting, shareholders re-elected two Class I members to the Board, R. Matthew Neff and Robert W. Leasure, Jr., who will serve until the 2028 annual meeting. Additionally, Ernst & Young LLP was ratified as the company’s independent registered public accounting firm for the fiscal year 2025.
Shareholders also approved, on an advisory basis, the compensation of the company’s named executive officers as described in the proxy statement. Furthermore, the advisory vote on the frequency of future advisory votes on executive compensation favored holding such votes every three years, which the company has adopted.
The approval of the equity plan amendment is poised to provide Inotiv with additional flexibility in compensating and incentivizing its employees, directors, and officers. The information reported is based on a press release statement from Inotiv, Inc. and the recent SEC filing. For comprehensive analysis of Inotiv’s financial health and detailed metrics, investors can access the full Pro Research Report available on InvestingPro, which covers over 1,400 US equities with deep-dive analysis and actionable insights.
In other recent news, Inotiv Inc. reported its financial results for the first quarter of fiscal year 2024, revealing a challenging period as both earnings per share (EPS) and revenue fell short of analyst expectations. The company reported an EPS of -$1.02, missing the forecast of -$0.80, and revenue of $119.9 million, which was lower than the anticipated $127.43 million. This represents an 11.5% decrease in revenue compared to the same quarter the previous year. Inotiv’s operating losses widened to $15.5 million from $9.4 million in the prior year. Additionally, the company settled a lawsuit with Freese and Nichols, Inc. for $7.55 million, which will be reflected in future financial statements once the payment is received.
Inotiv remains focused on customer satisfaction and market expansion despite the financial setbacks. The company anticipates improved revenue and EBITDA growth for the year, although no specific guidance for fiscal 2025 was provided. Inotiv’s recent developments include a strategic focus on reducing revenue volatility in its non-human primates segment and capitalizing on cross-selling opportunities. The company also reported a $4 million project cancellation impacting Discovery (NASDAQ:WBD) Services metrics, but confirmed more robust customer commitments for 2025. Analyst firms have noted the company’s challenges, but Inotiv continues to work on optimizing operations and expanding its client base.
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