CTLT Anticipates Boost From Demand for Injectable Weight-LossMain Highlights
1. Syringe maker Catalent suggested soaring demand for injectable weight-loss drugs could lead to sizable revenue gains, and shares surged.
2. The company said sales of its pre-filled syringes could increase more than five-fold because of the popularity of those drugs.
3. Catalent also released preliminary quarterly results, and revenue exceeded forecasts.
Syringe maker Catalent (NYSE: CTLT) said soaring demand for injectable weight-loss drugs could lead to big revenue gains, and shares surged over 11%.
The company indicated that it expected a majority of its current and upcoming production capacity for pre-filled syringes until fiscal year 2026 to soon be booked out.
Catalent syringes are used to deliver Novo Nordisk’s (NVO) Wegovy, a diabetes treatment that has been shown to help patients lose weight. Wegovy is in the class of drugs known as GLP-1, which also includes Novo Nordisk’s Ozempic and Eli Lilly’s (LLY) Mounjaro and Zepbound.
Catalent also reported preliminary first quarter fiscal 2024 revenue of $982 million, down 4% from a year ago but more than analysts’ estimates. The company announced on Monday it was delaying release of its quarterly statement because of a $700 million goodwill impairment charge
Technical Analysis
(NYSE: CTLT) is trading near the bottom of its 52-week range and below its 200-day simple moving average.
What does this mean?
Investors have been pushing the share price lower, and the stock still appears to have downward momentum.
CTLT
CTLT Catalent Options Ahead of EarningsAnalyzing the options chain and the chart patterns of CTLT Catalent prior to the earnings report this week,
I would consider purchasing the 40usd strike price in the money Calls with
an expiration date of 2024-1-19,
for a premium of approximately $8.30.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Looking forward to read your opinion about it.
CTLT - Down Channel IdeaPrice on this daily chart is currently within a down channel.
However price is close to the bottom of the down channel.
I expect a W like recovery from this bottom, which shows with the bars pattern tool in green.
Similar down periods in green lines also.
Catalent about to close it's gap?Catalent - 30d expiry - We look to Sell a break of 65.98 (stop at 69.98)
We have a Gap open at 6.2. from 56.05 to 69.46.
The primary trend remains bearish.
A break of support at 66.44 should lead to a more aggressive move lower towards 55.00.
This stock has seen poor sales growth.
Our outlook is bearish.
Our profit targets will be 55.98 and 53.98
Resistance: 70.00 / 72.54 / 76.50
Support: 66.44 / 55.00 / 52.00
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CTLT Double BottomCTLT looking bullish after a double bottom right on the 200 EMA. Also has a nice MACD pattern.
Will buy now or keep a close eye on it for a retracement bar to use for an entry.
Index Reconstitutions: Is there a trade?A friend asked a very good trading idea question: Can we profit from additions and subtractions to stock indexes? The addition of NASDAQ:TSLA was a very public event this year and definitely led to a bull run in that stock. What about other stocks that were added and removed this year?
CTLT Long IdeaHere is another good looking stock. I like the way the Moving averages all converged then a nice pop above all of them. I'm in this one, think it will run.
