Medpace (NASDAQ:MEDP) Announces Earnings Results, Beats Expectations By $0.40 EPS

Key Points

• Medpace exceeded quarterly expectations: EPS was $4.84, beating consensus by $0.40, while revenue of $716.0 million was slightly above estimates of $714.47 million.
• Shares rose sharply: MEDP gained $40.05 to reach $662.48, near its 52-week high of $677.90, with a market capitalization of approximately $18.49 billion.
• Analysts remain cautious: Medpace has a consensus “Hold” rating, with three Buy ratings and ten Holds and an average price target of $607.73; insiders sold $208.0 million of stock over the last quarter.

Medpace (NASDAQ:MEDP - Get Free Report) released its quarterly earnings results on Wednesday. The company reported $4.84 EPS for the quarter, topping analysts' consensus estimates of $4.44 by $0.40, FiscalAI reports. Medpace had a return on equity of 110.15% and a net margin of 17.67%. The business had revenue of $716.00 million for the quarter, compared to analyst estimates of $714.47 million.

Medpace Stock Performance

MEDP traded up $40.05 during mid-day trading on Wednesday, reaching $662.48. The stock had a trading volume of 1,023,695 shares, compared to its average volume of 329,588. The stock has a market capitalization of $18.49 billion, a P/E ratio of 38.83, a P/E/G ratio of 2.76 and a beta of 1.18. Medpace has a 52 week low of $373.00 and a 52 week high of $677.90. The firm's fifty day simple moving average is $607.09 and its two-hundred day simple moving average is $534.49.

Analyst Ratings Changes

A number of research firms have commented on MEDP. BMO Capital Markets boosted their price objective on Medpace from $400.00 to $600.00 and gave the stock a "market perform" rating in a research note on Friday, July 24th. Weiss Ratings upgraded Medpace from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, October 8th. UBS Group assumed coverage on Medpace in a research note on Wednesday, September 30th. They issued a "neutral" rating and a $673.00 target price for the company. Barclays lifted their price target on Medpace from $600.00 to $625.00 and gave the company an "equal weight" rating in a report on Wednesday, October 7th. Finally, Leerink Partners set a $620.00 price target on shares of Medpace in a research report on Thursday, July 23rd. Three analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company. According to MarketBeat, Medpace has a consensus rating of "Hold" and an average target price of $607.73.

Insider Activity

In related news, CEO August Troendle sold 49,018 shares of the firm's stock in a transaction dated Tuesday, September 22nd. The stock was sold at an average price of $628.11, for a total value of $30,788,695.98. Following the transaction, the chief executive officer owned 433,372 shares in the company, valued at $272,205,286.92. This trade represents a 10.16% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders sold a total of 336,140 shares of company stock worth $208,008,328 over the last quarter. Corporate insiders own 20.50% of the company's stock.

Medpace Company Profile

Medpace Holdings, Inc is a contract research organization (CRO) that provides clinical development services to biotechnology, pharmaceutical and medical device companies. The company supports sponsors throughout the development process, from early-stage planning and regulatory submissions through clinical trial execution, data management, analysis and reporting.

Medpace's services include Phase I through Phase IV clinical research, clinical monitoring, biostatistics, data management, medical writing, pharmacovigilance, regulatory consulting and central laboratory services.

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