Catalent, Inc. (CTLT): What’s the Story?

Catalent, Inc. (NYSE:CTLT) is an interesting player in the Healthcare space, with a focus on Drugs – Generic. The stock has been active on the tape, currently trading at $26.43, up from yesterday’s close by -1.60%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Does this stock stack up well when compared to its peers in the space? Let’s take a look. Catalent, Inc. (CTLT) currently trades with a market capitalization of $3.30B. That value represents a market adjusting for revenues that have been growing by 4.50% on a quarterly year/year basis as of the company’s last quarterly report.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For CTLT, the company currently has $139.90M of cash on the books, which is offset by $1.94B current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $41.74M over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of 0.24 on a per share basis this quarter. Perhaps, that suggests something about why 75.90% of the outstanding share supply is held by institutional investors.

Technical Analysis

We’ve taken a serious look at this stock from a fundamental perspective, but the tale of the tape may offer more hints about what lies under the surface. Looking at the stock’s movement on the chart, Catalent, Inc. recorded a 52-week high of 32.24. It is now trading 5.38 off that level. The stock is trading 25.70 its 50-day moving average by -1.16. The stock carved out a 52-week low down at 18.92.

In recent action, Catalent, Inc. (CTLT) has made a move of +5.64% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is outperforming the S&P 500 by 10.03, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 124.24M with 6.91% sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of CTLT.

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