In a recent transaction, several entities under the Carlyle Group (NASDAQ:CG) Inc. umbrella have sold a significant number of shares in QuidelOrtho Corp (NASDAQ:QDEL), a company specializing in in vitro diagnostics. The sales, totaling approximately $8,018,459, occurred within a price range of $36.89 to $41.15 per share.
The entities involved in the sale include Carlyle Group Inc., Carlyle Holdings II GP L.L.C., Carlyle Holdings II L.L.C., CG Subsidiary Holdings L.L.C., TC Group Cayman Investment Holdings, L.P., and several associated firms. These transactions were executed in line with a pre-arranged trading plan established on May 12, 2024, under Rule 10b5-1, which allows company insiders to set up a trading plan for selling stocks they own.
The sales were conducted over two days, with prices for the shares sold on June 12, 2024, ranging from $39.80 to $41.18, and those on June 13, 2024, ranging from $36.70 to $39.54. The detailed breakdown of the transactions includes multiple individual sales at varying prices, contributing to the overall total and price range.
QuidelOrtho Corp's stock is publicly traded and is known for providing diagnostic solutions. The company's products range from rapid diagnostics to laboratory solutions, including assays and instruments.
These sales by Carlyle Group entities represent a change in their investment in QuidelOrtho Corp, but the filings do not necessarily indicate a shift in the company's business outlook or operations. The transactions are part of the routine financial dealings that occur within the investment world and are disclosed in compliance with SEC regulations.
Investors and the market often monitor such sales for insights into insider perspectives and potential shifts in company ownership. However, it's important to note that such transactions do not always reflect the insiders' view on the company's future performance but can be influenced by various factors, including personal financial planning and diversification strategies.
In other recent news, QuidelOrtho reported mixed results for Q1 2024 due to a decrease in COVID-19 related sales, leading to a total revenue of $711 million. Despite this, the company saw a 6% growth in other areas, excluding COVID-19 products. Major cost reduction measures, including headcount reductions, have been implemented aiming to save approximately $100 million annually. Newly appointed President and CEO Brian Blaser is focusing on enhancing customer satisfaction, profitability, and market competitiveness. QuidelOrtho has suspended its financial guidance for the time being to allow the new CEO to reassess the business strategy for the remainder of the year. The company anticipates an improvement in cash flow in the second half of 2024 and has revised its COVID-19 revenue forecast to $150 million for the year. These are among the recent developments at QuidelOrtho.
InvestingPro Insights
In light of the recent share sales by Carlyle Group entities in QuidelOrtho Corp (NASDAQ:QDEL), investors may find the following InvestingPro data and tips particularly revealing. QuidelOrtho has a market capitalization of approximately $2.44 billion, indicating its significant size within the in vitro diagnostics market. However, it's worth noting that the company's stock has been under pressure, trading near its 52-week low and reflecting a notable decline over the past six months.
InvestingPro data shows a Price to Earnings (P/E) ratio of -1.37, suggesting that the company has been operating at a loss. When adjusted for the last twelve months as of Q1 2024, the P/E ratio stands at -10.13. Additionally, QuidelOrtho's stock has experienced a one-week price total return of -10.44%, further emphasizing the recent downward trend in its share price.
Despite this challenging backdrop, there are potential signs of recovery on the horizon. One of the InvestingPro Tips highlights that net income is expected to grow this year, which could signal a turnaround for the company. Moreover, QuidelOrtho is recognized for its high shareholder yield, which may appeal to investors looking for companies that prioritize shareholder return.
For those seeking a deeper analysis, there are 5 additional InvestingPro Tips available, which can be accessed at https://www.investing.com/pro/QDEL. These tips provide a more nuanced view of QuidelOrtho's financial health and future prospects. Investors interested in leveraging this resource can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro, offering a comprehensive suite of tools and insights to inform investment decisions.
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