Catalent (NYSE:CTLT) stock is on the move Thursday as investors react to activist investor Elliott Investment taking a stake in the drug-making company.
Specific details of the stake Elliott has taken in Catalent are still unknown. However, the company has reportedly gained enough of a hold that its in talks with potential candidates for the company’s Board of Directors.
That’s a big deal for CTLT stockholders, as it means Elliott Investment is likely preparing for a proxy battle. This would see the company seek the nomination and addition of its own board members to further its plans for the company.
Investors will note that the interest in Catalent comes as the company goes through a tough time. That includes problems with drug development that could lead to lower earnings in 2023, reports Reuters.
What This Means for CTLT Stock
If Elliott Investment is successful in enacting a proxy battle at Catalent, it could be to the benefit of investors. The activist investor could strengthen the company’s operations to increase the price of shares. Doing so would allow it to sell that stock for a profit compared to when it took a stake in CTLT.
Investors appear excited about that prospect on Thursday morning with shares of CTLT stock up 5.4%.
There’s even more stock market news that traders are going to want to read about below!
We’ve got all of the hottest stock market news that investors need to know about on Thursday! A few examples of that include why shares of BioSig Technologies (NASDAQ:BSGM), Discover Financial (NYSE:DFS) and Netcapital (NASDAQ:NCPL) stock are rising today. All of that news is ready to go at the following links!
More Thursday Stock Market News
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
