QuidelOrtho (NASDAQ:QDEL) Shares Down 7.1% - Here's What Happened

Key Points

• QuidelOrtho (QDEL) shares fell about 7.1% to roughly $11.98 on Tuesday, trading down from a $12.89 close with volume ~52% below the average session level.
• Analyst sentiment is mixed-to-negative—MarketBeat shows a consensus rating of "Reduce" with a $28.25 average target, multiple downgrades (Weiss, Zacks, Wall Street Zen) and notable divergent price-target moves (UBS cut to $17, Citi raised to $30).
• Operationally, the company beat the quarter (EPS $0.46 vs. $0.43; revenue $723.6M vs. $699.8M) but has a -41.46% net margin, a market cap of $802.6M, and recent insider purchases by the CEO and CFO.

Shares of QuidelOrtho Corporation (NASDAQ:QDEL - Get Free Report) fell 7.1% during trading on Tuesday . The stock traded as low as $12.11 and last traded at $11.9750. 822,999 shares traded hands during trading, a decline of 52% from the average session volume of 1,700,485 shares. The stock had previously closed at $12.89.

Analysts Set New Price Targets

A number of research analysts have weighed in on the stock. Weiss Ratings reiterated a "sell (e+)" rating on shares of QuidelOrtho in a research report on Thursday, January 22nd. Zacks Research cut QuidelOrtho from a "hold" rating to a "strong sell" rating in a research report on Tuesday, February 17th. Wall Street Zen cut QuidelOrtho from a "buy" rating to a "hold" rating in a report on Sunday, April 12th. UBS Group lowered their price target on QuidelOrtho from $30.00 to $17.00 and set a "neutral" rating on the stock in a research report on Friday, April 10th. Finally, Citigroup raised their price objective on QuidelOrtho from $23.00 to $30.00 and gave the company a "neutral" rating in a report on Thursday, February 12th. One research analyst has rated the stock with a Buy rating, two have issued a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Reduce" and a consensus price target of $28.25.

QuidelOrtho Trading Down 8.5%

The company has a 50 day moving average of $18.90 and a 200 day moving average of $24.83. The company has a debt-to-equity ratio of 1.29, a quick ratio of 0.90 and a current ratio of 1.50. The stock has a market capitalization of $802.60 million, a price-to-earnings ratio of -0.71 and a beta of 0.92.

QuidelOrtho (NASDAQ:QDEL - Get Free Report) last announced its earnings results on Wednesday, February 11th. The company reported $0.46 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.43 by $0.03. The company had revenue of $723.60 million for the quarter, compared to analysts' expectations of $699.80 million. QuidelOrtho had a negative net margin of 41.46% and a positive return on equity of 5.91%. The firm's quarterly revenue was up 2.2% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.63 EPS. On average, research analysts predict that QuidelOrtho Corporation will post 2.18 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CFO Joseph M. Busky bought 3,370 shares of the stock in a transaction dated Friday, February 13th. The shares were acquired at an average cost of $23.66 per share, for a total transaction of $79,734.20. Following the acquisition, the chief financial officer directly owned 10,290 shares in the company, valued at approximately $243,461.40. This trade represents a 48.70% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Brian J. Blaser purchased 10,540 shares of the company's stock in a transaction dated Friday, February 13th. The stock was bought at an average price of $23.59 per share, with a total value of $248,638.60. Following the completion of the transaction, the chief executive officer directly owned 40,073 shares of the company's stock, valued at approximately $945,322.07. This represents a 35.69% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last three months, insiders have acquired 23,910 shares of company stock worth $567,973. 0.79% of the stock is owned by insiders.

Hedge Funds Weigh In On QuidelOrtho

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Global Retirement Partners LLC increased its stake in shares of QuidelOrtho by 3,691.7% in the 4th quarter. Global Retirement Partners LLC now owns 910 shares of the company's stock worth $26,000 after acquiring an additional 886 shares during the last quarter. Camelot Portfolios LLC acquired a new position in shares of QuidelOrtho during the 4th quarter valued at about $29,000. Salomon & Ludwin LLC grew its holdings in shares of QuidelOrtho by 100.6% in the third quarter. Salomon & Ludwin LLC now owns 989 shares of the company's stock valued at $30,000 after purchasing an additional 496 shares during the period. Hantz Financial Services Inc. grew its holdings in shares of QuidelOrtho by 50.3% in the fourth quarter. Hantz Financial Services Inc. now owns 1,082 shares of the company's stock valued at $31,000 after purchasing an additional 362 shares during the period. Finally, Nisa Investment Advisors LLC increased its position in QuidelOrtho by 118.1% during the third quarter. Nisa Investment Advisors LLC now owns 1,280 shares of the company's stock worth $38,000 after purchasing an additional 693 shares during the last quarter. Institutional investors and hedge funds own 99.00% of the company's stock.

QuidelOrtho Company Profile

QuidelOrtho is a global diagnostics company formed through the merger of Quidel Corporation and Ortho Clinical Diagnostics. The combined entity develops, manufactures and markets a broad portfolio of rapid and high-throughput diagnostic solutions across immunoassay, molecular diagnostics and transfusion medicine. Its offerings span point-of-care platforms for acute care testing as well as large-scale automated systems designed for clinical laboratories and blood banks.

The company's product range includes rapid antigen and antibody tests for infectious diseases, molecular assays utilizing nucleic acid amplification technology, and integrated immunodiagnostic analyzers.

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