On November 14, 2023, Robert Kraft, a director at Medpace Holdings, Inc. (NASDAQ:MEDP), sold 6,472 shares of the company’s stock for a total value of $3,830,453.20. The shares were sold at an average price of $591.85. Following this transaction, Kraft retained only 833 shares, worth approximately $493,011.05. This sale represents a significant reduction of 88.60% in his ownership stake.
The details of the transaction were disclosed in a filing with the U.S. Securities and Exchange Commission (SEC). The filing indicates a strategic move on Kraft’s part, potentially reflecting his outlook on the company’s future performance.
Market Performance and Company Overview
On the same day as the sale, Medpace’s stock opened at $586.16. The company has demonstrated considerable resilience, with a fifty-day moving average price of $547.43 and a 200-day moving average price of $430.70. Medpace has a market capitalization of $16.51 billion and maintains a price-to-earnings ratio of 40.99 and a PEG ratio of 2.67. Over the past year, the company’s stock has fluctuated between a low of $250.05 and a high of $625.00.
In its most recent earnings report, released on October 22, 2023, Medpace revealed earnings per share (EPS) of $3.86, surpassing analyst expectations of $3.50 by $0.36. The company reported a net margin of 18.36% and an impressive return on equity of 91.88%. Revenue for the quarter reached $659.90 million, exceeding forecasts of $640.49 million. This represents a year-on-year revenue increase of 23.7%.
Medpace has issued guidance for fiscal year 2025, projecting EPS between $14.600 and $14.860. Analysts anticipate an average EPS of 12.29 for the current fiscal year.
Institutional Trading Activities
Recent trading activity in Medpace shares has involved several large institutional investors. Victory Capital Management Inc. increased its stake by 41.7% in the first quarter, now holding 23,979 shares valued at $7,306,000. Additionally, Verdence Capital Advisors LLC raised its holdings by 9.4%, now owning 992 shares worth $302,000.
Other firms such as Diversify Advisory Services LLC and Private Advisor Group LLC have also increased their stakes by 12.4% and 12.3% respectively, contributing to a broad institutional ownership comprising 77.98% of Medpace’s stock.
Medpace Holdings, Inc. specializes in providing outsourced clinical development services to the biotechnology, pharmaceutical, and medical device industries. Its service offerings include clinical trial management, regulatory affairs, patient recruitment, and data sciences, among others. As the company continues to grow, the recent insider selling by Kraft might raise questions about future stock performance and strategic direction.
