Catalent stock: buy or sell?

CTLT stock price: $51.60 1.90% At close on September 20th, 2019

Updated on:
September 20th, 2019

1

Catalent shares crossed up the simple moving average line of 100d today and closed at $51.60.

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

Should I buy Catalent stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. That's why is so important to choose your own trading strategy that matches with your character as inversor. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, Catalent stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean CTLT will fall in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Catalent stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we collected 8 ratings published for CTLT stock in the last 30 days.

The general sentiment of these ratings is bullish for CTLT stock, with 7 positive ratings.
Is CTLT a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-8-28Robert W. Bairdn/aOutperform
2019-8-28Morgan Stanleyn/aOverweight
2019-7-23UBS Groupn/aBuy
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

Catalent shares broke up the SMA line of 100d today and closed at $51.60, jumped a 1.90%.

Catalent crossed up the simple moving average line of 100 days today and closed at $51.60, jumped a 1.90%. CTLT is soaring again after a 3.68% correction from its last top on September 13th at $52.22. Since May when SMA100d and SMA200d crossed up, CTLT price gained $6.23 per share (13.73%). On July, CTLT hit new all time highs, pushing higher previous ATH of $57.65 recorded on July. New ATHs are usual entry points for many trading setups as there aren't higher resistences.

CTLT stock chart (daily)

Weekly outlook

After sliding for 4 weeks, this week Catalent inched a slightly fine 0.49%, closing at $51.60. After 4 weeks sliding, this week raised a 0.48%. By mid August CTLT plunged a shocking -5.06% in just one week.

CTLT shows a long term strength with several rising tops and rising bottoms. It left a new bottom at $49.93 last week. Previous top ($58.38) will play as a resistance in possible new gains. Not so far away is the last all-time high Catalent marked late July. Since mid May when SMA20w and SMA40w crossed up, CTLT price gained $6.83 per share (15.26%). 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 158.00%, with an average of 31.60% per year. If you had invested right after CTLT's IPO a $1,000 in Catalent stock in 2014, it would worth $1,580.00 today.

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

Catalent stock historical price chart

CTLT stock reached all-time highs on July with a price of $58.38.

Catalent stock price target is $56.30

Nobody can reliably foresee how stock prices may evolve in the future. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. You should not follow the analysts' CTLT stock price predictions in the hope that they will be met as they may be wrong and not met. We detected 8 price targets for CTLT stock posted in the last 30 days:
CTLT stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-8-28Robert W. BairdRaises Target$50.00$60.0020%
2019-8-28Morgan StanleyRaises Target$50.00$61.0022%
2019-7-23UBS GroupRaises Targetn/a$64.00-
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)$47.20$56.3019.0%
The price forecast for Catalent stock is $56.30, moving in a range between $64.00 and $49.00. In average, analysts' outlook on CTLT price target is positive, upgrading the target by a 19.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Catalent presented dazzling results for 2018-Q4 on February. Catalent boosted 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 turnover boosted a super good 18.70% to $2,463.40 million dollars from $2,075.40 marked in 2017. However, its profit margin (compared to sales) declined to 3.39%, that is $83.60 million.

To have an up to date view of the financial situation of Catalent, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2018-Q4 that can be compared to 2018 fiscal year results. Annual Catalent TTM sales up to December 2018 were $2,488.00 and income was $136.30 M dollars. If we compare this TTM figures with the last reported annuality, we can review Catalent business evolution since June 2018: Annual turnover up to December, compared to lastest yearly report, remained constant a slightly fine 1.00%. However, profit margin (net income/revenues) grew at 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 revenues for 2018-Q4, a 12.90% improvement compared to previous quarter. Reported quarter income marked $49.00 million with a profit margin of 7.87%. Profit margin rocketed a 10.47% compared to previous quarter when profit margin was -2.61%. When comparing turnover to same quarter last year, Catalent sales marked a slightly good increase and inched 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 invest in shares of a company, it's 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 following table shows ownership data compared to other related companies:

CTLTAERIINVAJAZZSUPN
Market cap$7.5 B$1.1 B$1.1 B$7.3 B$1.5 B
Total shares146.0 M45.9 M101.3 M56.6 M52.5 M
Float shares145.0 M36.7 M53.5 M55.1 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

Friday, September 20th, 2019
Open$50.92
Close$51.60
Day range$50.84 - $51.65
Previous close$50.64
Session gain1.90%
Average true range$1.11
50d mov avg$54.07
100d mov avg$51.42
200d mov avg$45.09
Daily patternlb01a
Weekly pattern lb03a

Catalent performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. We picked Aerie Pharmaceuticals, Innoviva, Jazz Pharmaceuticals and Supernus Pharmaceuticals as the bechmarking frame for Catalent stock.
Stock3m6m12m
CTLTCatalent-3.08%26.87%20.98%
AERIAerie Pharmaceuti...-25.88%-51.07%-60.80%
INVAInnoviva-22.32%-19.72%-26.22%
JAZZJazz Pharmaceutic...-3.84%-5.41%-21.11%
SUPNSupernus Pharmace...-4.64%-17.50%-39.84%

Catalent competitors

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