Medpace (NASDAQ:MEDP) Stock Jumps 6.7% Following Better-Than-Expected Earnings

Medpace Holdings, Inc. (NASDAQ:MEDP)’s stock price shot up 6.7% during mid-day trading on Wednesday following a stronger than expected earnings report. The stock traded as high as $661.99 and last traded at $664.0180. Approximately 256,301 shares were traded during trading, a decline of 21% from the average session volume of 326,005 shares. The stock had previously closed at $622.43.

The company reported $4.84 EPS for the quarter, beating the consensus estimate of $4.44 by $0.40. The business had revenue of $716.00 million for the quarter, compared to the consensus estimate of $714.47 million. Medpace had a return on equity of 104.17% and a net margin of 18.24%. The business’s revenue was up 8.5% on a year-over-year basis. During the same period in the previous year, the business earned $3.86 earnings per share.

Medpace News Roundup

Here are the key news stories impacting Medpace this week:

• Positive Sentiment: Third-quarter results exceeded expectations. Medpace reported adjusted earnings of $4.84 per share, ahead of the roughly $4.44-$4.45 consensus, while revenue reached $716 million versus estimates of $714.5 million. Revenue increased 8.5% year over year, and earnings rose from $3.86 per share in the prior-year quarter. Medpace Q3 Earnings and Revenues Beat Estimates
• Positive Sentiment: Forward outlook and demand indicators supported the bullish case. Management forecast 2026 earnings of $17.97-$18.32 per share, described as above Wall Street expectations. Net new business awards totaled $873 million in the quarter, and ending backlog rose 5.6% year over year to $3.2 billion, providing revenue visibility. Medpace 2026 Forecast and Buyback
• Positive Sentiment: A new $1 billion buyback may bolster shareholder returns. The authorization replaces the prior repurchase program and signals management’s confidence in cash generation and the company’s valuation, while reducing the number of shares outstanding if fully executed. Medpace Buyback and Third-Quarter Profit
• Neutral Sentiment: Analyst sentiment remains cautious. Deutsche Bank raised its price target to $650 from $535 but maintained a Hold rating, suggesting improved expectations are already largely reflected in the shares. Deutsche Bank Medpace Price Target
• Negative Sentiment: Valuation and growth concerns limited the reaction. Commentary characterized MEDP as potentially about 24% overvalued, while the stock’s elevated earnings multiple leaves less room for execution or guidance disappointments. Investors also questioned whether the modest backlog growth and revenue expansion were sufficient to justify the premium valuation. Medpace Valuation After Q3 Beat

Wall Street Analysts Forecast Growth

MEDP has been the subject of several recent analyst reports. Leerink Partners set a $620.00 price target on Medpace in a research note on Thursday, July 23rd. Jefferies Financial Group reiterated a “hold” rating on shares of Medpace in a research report on Monday, September 14th. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and issued a $535.00 target price on shares of Medpace in a report on Thursday, July 23rd. TD Cowen upped their target price on shares of Medpace from $419.00 to $492.00 and gave the stock a “hold” rating in a research report on Friday, July 24th. Finally, Robert W. Baird upped their target price on shares of Medpace from $547.00 to $624.00 and gave the stock a “neutral” rating in a research report on Friday, July 24th. Three research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company. According to MarketBeat, Medpace has a consensus rating of “Hold” and an average price target of $612.27.

Insider Buying and Selling at Medpace

In related news, CEO August Troendle sold 49,018 shares of the firm’s stock in a transaction on 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 completion of the sale, the chief executive officer directly 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 sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Over the last 90 days, insiders sold 336,140 shares of company stock worth $208,008,328. Insiders own 20.50% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the company. BlackRock Inc. bought a new stake in shares of Medpace in the 2nd quarter worth about $1,323,047,000. Madison Asset Management LLC bought a new stake in Medpace in the second quarter worth about $128,956,000. Bank of America Corp DE purchased a new position in shares of Medpace during the second quarter valued at approximately $116,891,000. American Capital Management Inc. purchased a new position in shares of Medpace during the second quarter valued at approximately $111,329,000. Finally, Caisse de depot et placement du Quebec purchased a new position in shares of Medpace during the second quarter valued at approximately $80,979,000. Institutional investors own 77.98% of the company’s stock.

Medpace Stock Down 1.3%

The stock has a market cap of $18.25 billion, a P/E ratio of 38.33, a PEG ratio of 2.96 and a beta of 1.18. The business has a 50 day moving average price of $609.84 and a 200 day moving average price of $536.74.

About Medpace

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.