and related entities The Carlyle Group Global Investment Corporation (NASDAQ: ) Inc. has sold a majority of its stake in QuidelOrtho Corp (NASDAQ: QDEL ), a leading provider of diagnostic healthcare solutions. The transactions, which took place on July 24 and 25, involved the sale of shares of QuidelOrtho common stock valued at more than $24 million.
The shares sold for $37.77 to $39.80, according to sale details. The sale was conducted pursuant to a prearranged trading plan under Rule 10b5-1, which allows insiders to develop a predetermined plan to sell stock without having material nonpublic information.
The entity conducting the sale is part of a complex ownership structure in which Carlyle Partners VI Cayman Holdings, LP is the holder of record of the shares. The Carlyle Group (NASDAQ: CG ) is at the top of the structure and may be deemed to share in beneficial ownership of the securities sold.
The specific amount sold each day varies. On July 24, a total of 2,526 shares were sold at an average price of $37.9042. A total of 92,628 shares were sold that day at an average price of $38.5494. 119,578 shares were sold at an average price of $39.3148. On July 25, these entities sold 309,373 shares at an average price of $38.4043 and 97,436 shares at an average price of $39.1587.
Following the completion of these transactions, these entities retained significant holdings in QuidelOrtho, demonstrating a continued interest in the company’s performance and future. The sale reflects a partial divestment, which is common among large investment entities that manage diversified investment portfolios.
Investors and market watchers often look to such insider transactions for signals about a company’s health and the mood of senior executives. However, sales under a Rule 10b5-1 plan are generally prearranged and do not necessarily reflect direct concern or approval of the company’s prospects.
QuidelOrtho Corp’s stock performance and future prospects continue to be of interest to the investment community, particularly in the dynamic healthcare industry in which the company operates.
In other recent news, diagnostics company QuidelOrtho reported a decline in total revenue to $711 million in the first quarter of 2024, primarily due to lower sales related to COVID-19. Still, revenue in areas other than COVID-19 products grew 6%. The company has slashed its workforce as part of a cost-cutting phase aimed at saving about $100 million annually.
Newly appointed President and CEO Brian Blaser is committed to improving customer satisfaction, profitability and market competitiveness. QuidelOrtho has temporarily suspended its financial guidance to allow its new chief executive to reassess the business and strategize for the remainder of the year.
The company also reported a significant non-cash goodwill impairment charge of $1.7 billion in the North America reporting segment. Still, QuidelOrtho’s point-of-care and molecular diagnostics segments showed strong growth (excluding COVID-19 revenue). The company expects cash flow to improve in the second half of 2024 and revised its COVID-19 revenue forecast for this year to $150 million.
Investment Professional Insights
Given the recent sale of QuidelOrtho Corp (NASDAQ: QDEL ) stock by a Carlyle Group Inc.-affiliated entity, potential investors may be interested in some key financial metrics and expert insights. According to InvestingPro data, QuidelOrtho’s market value is approximately $2.62 billion. Despite a challenging period, the company posted solid returns last week, with a total share price return of 10.23%. Last month’s return was an impressive 13.27%.
However, it’s worth noting that QuidelOrtho is facing some headwinds, with negative revenue growth of -7.95% for the trailing twelve months to Q1 2024, which is further evidenced by the company’s negative P/E ratio of -1.48. Investors currently cannot assess the company’s profit potential based on its trailing twelve month performance. Furthermore, the stock has fallen significantly by 45.65% in the past six months, highlighting potential volatility or concerns in the market.
From InvestingPro Tips’ perspective, QuidelOrtho operates with a heavy debt load, which is a key factor for investors to consider. Additionally, while the company hasn’t turned a profit in the last twelve months, analysts predict it will return to profitability this year. For investors looking for more in-depth analysis, there are other tips available on InvestingPro, including insights into analyst earnings revisions and EBIT valuation multiples. With insights from these experts, individuals can make more informed decisions about whether to include QDEL in their portfolios. Interested readers can get more tips at https://www.investing.com/pro/QDEL and use the coupon code PRONEWS24 Enjoy up to 10% discount on annual Pro and Pro+ annual or two-year subscriptions. QuidelOrtho Corp also provides 10 additional InvestingPro Tips that provide a comprehensive analysis of the company’s financial health and stock performance.
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