Entities associated with the Carlyle Group (NASDAQ:CG) Inc., a global investment firm, have sold a significant portion of their holdings in QuidelOrtho Corp (NASDAQ:QDEL), a leading provider of diagnostic healthcare solutions. The transactions, which took place on July 24th and 25th, involved the sale of QuidelOrtho common stock amounting to over $24 million.
According to the details of the sales, shares were sold at prices ranging from $37.77 to $39.80. The sales were executed under a pre-arranged trading plan in accordance with Rule 10b5-1, which allows insiders to set up a predetermined plan to sell stocks at a time when they are not in possession of material non-public information.
The entities that conducted the sales are part of a complex ownership structure, with Carlyle Partners VI Cayman Holdings, L.P. being the record holder of the shares. The Carlyle Group Inc. (NASDAQ:CG) is at the top of this structure and may be deemed to share beneficial ownership of the securities sold.
The specific amounts sold on each day varied, with a total of 2526 shares sold at an average price of $37.9042 on July 24th, and on the same day, 92628 shares sold at an average of $38.5494, and 119578 shares at $39.3148. On July 25th, the entities sold 309373 shares at an average price of $38.4043, and 97436 shares at $39.1587.
Following these transactions, the entities still hold a substantial number of shares in QuidelOrtho, indicating a continuing interest in the company's performance and future. The sales reflect a partial divestment, which is common among large investment entities managing diversified portfolios.
Investors and market watchers often look to insider transactions such as these for signals about the company's health and executive sentiment. However, sales under Rule 10b5-1 plans are often scheduled in advance and may not necessarily reflect immediate concerns or endorsements of the company's prospects.
QuidelOrtho Corp's stock performance and future outlook remain of interest to the investment community, particularly in the dynamic healthcare sector where the company operates.
In other recent news, diagnostics company QuidelOrtho reported a decrease in total revenue to $711 million for the first quarter of 2024, primarily due to a reduction in COVID-19 related sales. Despite this, there was a 6% growth in revenue from other areas, excluding COVID-19 products. As part of a cost reduction phase, the company has implemented significant headcount reductions, aiming to save around $100 million annually.
Newly appointed President and CEO, Brian Blaser, is focusing on enhancing customer satisfaction, profitability, and market competitiveness. QuidelOrtho has temporarily suspended its financial guidance, allowing the new CEO to reassess the business and strategize for the remainder of the year.
The company also reported a significant noncash goodwill impairment charge of $1.7 billion for the North America reporting unit. Despite this, QuidelOrtho's Point-of-Care and Molecular Diagnostics segments showed strong growth, excluding COVID-19 revenue. The company expects an improvement in cash flow in the second half of 2024 and has revised its COVID-19 revenue forecast for the year to $150 million.
InvestingPro Insights
In light of the recent sale of QuidelOrtho Corp (NASDAQ:QDEL) stock by entities associated with the Carlyle Group Inc., potential investors might be interested in some key financial metrics and expert insights. According to InvestingPro data, QuidelOrtho has a market capitalization of approximately $2.62 billion. Despite a challenging period, the company has experienced a significant return over the last week, with a 10.23% price total return. Over the last month, the return has been even more impressive at 13.27%.
However, it's important to note that QuidelOrtho has faced some headwinds, as reflected in a negative revenue growth rate of -7.95% over the last twelve months as of Q1 2024. This is further evidenced by the company's negative P/E ratio of -1.48, which suggests that investors are currently unable to gauge the company's earnings potential based on its last twelve months' performance. Moreover, the stock has seen a significant drop of 45.65% over the last six months, highlighting potential volatility or concerns in the market.
From the perspective of InvestingPro Tips, QuidelOrtho operates with a significant debt burden, which is a crucial factor for investors to consider. Additionally, while the company has not been profitable over the last twelve months, analysts predict that it will return to profitability this year. For investors seeking more in-depth analysis, there are additional tips available on InvestingPro, including insights into analyst earnings revisions and EBIT valuation multiples. With these expert insights, individuals can make more informed decisions on whether to include QDEL in their portfolios. Interested readers can access further tips on https://www.investing.com/pro/QDEL, and can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. There are 10 more InvestingPro Tips available for QuidelOrtho Corp, offering a comprehensive analysis of the company's financial health and stock performance.
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