Catalent stock: buy or sell?

CTLT stock price: $52.97 -0.36% At close on June 26th, 2019

Updated on:
June 26th, 2019

3

After marking all time highs on Friday, Catalent decreased -0.36% to $52.97. On Friday CTLT climbed a super good 5.56%.

Catalent, Inc. provides delivery technologies and development solutions for drugs, biologics, and consumer and animal health products worldwide.

Should I buy Catalent stock?

Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. That's why is so important to define your own trading plan that matches with your character as inversor. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

Currently, 2 buy setups work for Catalent stock right now:

Buy setupElegible
New all-time highYes
New 52 week highYes
Price crossing up 200d MANo
100d MA crossing up 200d MANo

Is Catalent stock a buy?

Banks and financial institutions publish stock ratings everyday. At Stocks2.com, we gathered 5 ratings published for CTLT stock in the last 30 days.

The general sentiment of these ratings is bullish for CTLT stock, with 4 positive ratings.
Is CTLT a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-6-21Jefferies Financial GroupHoldBuy
2019-4-16UBS GroupNeutralBuy
2019-4-16Morgan Stanleyn/aOverweight
2019-4-16Jefferies Financial Groupn/aHold
2019-3-5First Analysisn/aOutperform

Catalent stock analysis

Daily outlook

After climbing to all-time highs several times in past weeks, Catalent decreased -0.36% to $52.97.

After topping to all time highs on Friday, Catalent decreased -0.36% to $52.97. For the last 36 days when SMA100d and SMA200d crossed up, CTLT price gained $7.60 per share (16.75%). Since price and SMA200d lines crossed up on April, CTLT climbed $13.71 (34.92%). From a daily perspective, CTLT is in a short term uptrend after plotting its last bottom ($44.46, on May/29) higher than the previous bottom, and its last top ($54.10, on Friday) also over the previous top. Now trading in between its last bottom and last top CTLT might consolidate in a plain range, waiting to break out over $54.10 or down under $44.46. On Friday, CTLT hit a new all time high, pushing higher than on Thursday tops. Check different trading setups that use ATHs as triggers.

CTLT stock chart (daily)

Weekly outlook

After boosting an amazing 6.67% in a week last week, Catalent closed this week at $52.97 and slightly fell a disappointing -0.51%.

Catalent stock is drawing an uptrend with rising tops and bottoms. Now trading in between its last bottom and last top, CTLT might consolidate in a flat-base, waiting to break out over or down under . Not so far away is the last price record Catalent marked last week. By mid May, SMA20w and SMA40w crossed up triggering a rise of 18.32%. By mid April CTLT price bounced up over the SMA of 40 weeks that acted as support stopping new slides.

CTLT stock chart (weekly)

Catalent stock price history

Catalent IPO was on July 31st, 2014 at $20.00 per share1. Since then, CTLT stock surged a 164.90%, with a yearly average of 41.20%. If you had invested right after CTLT's IPO a $1,000 in Catalent stock in 2014, it would worth $1,649.00 today.

1: Adjusted price after possible price splits or reverse-splits.

Catalent stock historical price chart

CTLT stock reached all-time highs on Friday with a price of $54.10.

Catalent stock price target is $53.00

How much a stock will be priced tomorrow or next week is quite unpredictable However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last month we found 5 price forecasts for Catalent stock:
CTLT stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-6-21Jefferies Financial GroupUpgrades$50.00$62.0024%
2019-4-16UBS GroupUpgrades$43.00$54.0025.6%
2019-4-16Morgan StanleyRaises Target$46.00$50.008.7%
2019-4-16Jefferies Financial GroupRaises Target$44.00$50.0013.6%
2019-3-5First AnalysisReiteratesn/a$49.00-
(in average)$45.80$53.0016.0%
The price target for Catalent stock is $53.00, moving in a range between $62.00 and $49.00. In average, analysts' outlook on CTLT price forecast is positive, upgrading the forecast by a 16.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Catalent presented exceptional results for 2018-Q4 on February. Catalent skyrocketed Earnings per Share (EPS) by 24.20%, beating analysts consensus of $0.33. Catalent posted $0.41.
CTLT earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/a0.22n/a
2017-Q2-n/a0.56n/a
2017-Q32017-11-060.180.2116.7%
2017-Q42018-02-050.330.4536.4%
2018-Q12018-05-010.350.388.6%
2018-Q22018-08-280.60.635.0%
2018-Q32018-11-060.240.22-8.3%
2018-Q42019-02-050.330.4124.2%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

In 2018, Catalent annual sales boosted a super good 18.70% to $2,463.40 M dollars from $2,075.40 marked in 2017. When comparing 2018 vs 2017, instead, profit margin (that is, the net income divided by revenues) declined a -1.90% to 3.39%.

Catalent fiscal year ends in June, and to evaluate its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Catalent TTM sales up to December 2018 were $2,488.00 and earnings $136.30 M USD. If we compare this TTM figures with the last reported annuality, we can esteem Catalent business evolution since June 2018: Annual turnover up to December, compared to lastest yearly report, remained constant a slightly fine 1.00%. Regarding profit margin, Catalent gained 2.08% to 3.39%

CTLT annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$1,800 M-$-47.90 M-2.7%-
2014$1,830 M1.67%$19 M1.0%-139.46%
2015$1,831 M0.04%$212 M11.6%1,022.75%
2016$1,848 M0.94%$112 M6.0%-47.46%
2017$2,075 M12.30%$110 M5.3%-1.52%
2018$2,463 M18.70%$84 M3.4%-23.86%
TTM $2,488 M1.00%$136 M5.5%63.04%

Quarterly financial results

Catalent reported $623.00 M in sales for 2018-Q4, a 12.90% up compared to previous quarter. Reported quarter income marked $49.00 million with a profit margin of 7.87%. Profit margin climbed a 10.47% compared to previous quarter when profit margin was -2.61%. When comparing sales to same quarter last year, Catalent sales marked a tiny increase and stepped up a 2.75%.
CTLT quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$533 M-$26 M4.9%-
2017-Q2$617 M15.83%$62 M10.0%137.69%
2017-Q3$544 M-11.83%$4 M0.7%-93.85%
2017-Q4$606 M11.47%$-22 M-3.6%-676.32%
2018-Q1$628 M3.56%$19 M3.0%-186.76%
2018-Q2$685 M9.14%$83 M12.1%335.26%
2018-Q3$552 M-19.48%$-14 M-2.6%-117.41%
2018-Q4$623 M12.90%$49 M7.9%-440.28%

Catalent ownership

When you are planning to buy shares of a stock, it's always worth to check its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Catalent, 0.70% of all outstanding shares are owned by its staff.

Bearish positions for CTLT stock account 0.00%, no big difference from last month.

For a better understanding, the next table shows ownership data compared to other related stocks:

CTLTAERIINVAJAZZSUPN
Market cap$7.7 B$1.4 B$1.4 B$7.8 B$1.7 B
Total shares145.7 M45.9 M101.3 M56.7 M52.4 M
Float shares144.9 M41.3 M54.3 M55.2 M50.7 M
  - Institutional holdings (%)101.7%112.5%81.3%96.2%98.9%
  - Insider holdings (%)0.7%1.8%32.5%2.8%3.4%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

Catalent summary

Wednesday, June 26th, 2019
Open$53.16
Close$52.97
Day range$52.55 - $53.53
Previous close$53.16
Session gain-0.36%
Average true range$1.22
50d mov avg$46.65
100d mov avg$44.04
200d mov avg$41.18
Daily patternlt06a
Weekly pattern lt06a

Catalent performance

To better understand Catalent performance you must compare its gains with other related stocks in same sector or industry. We compared Catalent against Aerie Pharmaceuticals, Innoviva, Jazz Pharmaceuticals and Supernus Pharmaceuticals in the following table:
Stock3m6m12m
CTLTCatalent30.50%72.32%26.45%
AERIAerie Pharmaceuti...-37.83%-16.86%-56.28%
INVAInnoviva-0.21%-18.08%1.45%
JAZZJazz Pharmaceutic...-4.29%12.42%-20.59%
SUPNSupernus Pharmace...-9.56%-2.07%-47.05%

Catalent competitors

One check before investing in any stock is to have a look a list of its competitors, in this case for Catalent. We selected 4 companies as Catalent competitors as they are in the same industry or have similar market objectives.