Catalent (CTLT) Declined on Lowered Guidance
Aristotle Atlantic Partners, LLC, an investment advisor, released its “Core Equity Strategy” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund posted a return of 6.92% net of fees compared to a 7.56% return for the S&P 500 Index. The fund’s underperformance in the quarter was primarily because of the security selection and allocation effects. Holdings in Health Care, Consumer Staples, and Industrials detracted from relative performance while holdings in Consumer Discretionary, Financials, and Information Technology contributed towards the relative performance of the strategy in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Aristotle Core Equity Strategy highlighted stocks like Catalent, Inc. (NYSE:CTLT) in its Q4 2022 investor letter. Headquartered in Somerset, New Jersey, Catalent, Inc. (NYSE:CTLT) is a drug, protein-based biologics, cell, and gene therapies manufacturer. On March 28, 2023, Catalent, Inc. (NYSE:CTLT) stock closed at $65.92 per share. One-month return of Catalent, Inc. (NYSE:CTLT) was -4.48%, and its shares lost 40.52% of their value over the last 52 weeks. Catalent, Inc. (NYSE:CTLT) has a market capitalization of $11.872 billion.
Aristotle Core Equity Strategy made the following comment about Catalent, Inc. (NYSE:CTLT) in its Q4 2022 investor letter:
“Catalent, Inc. (NYSE:CTLT) shares were weak following an earnings miss and a reduction in guidance. The lowering of guidance is attributable to two items: slower consumer spending on the pharmaceutical and consumer health segment due to low consumer confidence, inflation and a deteriorating macroeconomic environment; and cash conservatism amongst customers in both retail (wanting to reduce inventory to protect working capital) and pharma/biotech, reprioritizing pipelines and slowing certain pipeline programs. Excluding COVID-19-related business, revenue grew in excess of 20% on an organic basis. As a result, their base businesses remain strong.”
Catalent, Inc. (NYSE:CTLT) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held Catalent, Inc. (NYSE:CTLT) at the end of the fourth quarter which was 37 in the previous quarter.
We discussed Catalent, Inc. (NYSE:CTLT) in another article and shared TimesSquare U.S. Small/Mid Cap Growth Strategy's views on the company. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.
Disclosure: None. This article is originally published at Insider Monkey.