Medpace(US:MEDP) TMX Newsfile·2026-02-23 05:10Core Viewpoint - Medpace Holdings, Inc. is under investigation for potential violations of federal securities laws following a significant drop in its stock price despite reporting strong Q4 earnings [1][2]. Financial Performance - Medpace reported Q4 revenue of $708.5 million and GAAP EPS of $4.67, both exceeding Wall Street consensus estimates [2]. - The stock price fell approximately 10% by mid-day and closed down 15.9%, with a trading volume of about $10.2 million during the sell-off, indicating heightened trading activity [2]. Market Reaction - Analysts attributed the stock decline to a bookings shortfall, which overshadowed the positive sales and profit figures [3]. - The book-to-bill ratio missed expectations, leading to concerns about forward demand and a sharp decline in stock price [3]. Institutional Activity - Principal Financial Group reduced its stake in Medpace by 8.4% prior to the earnings release, while Representative David Taylor purchased shares shortly before [4]. Analyst Inquiries - During the Q4 earnings call, analysts raised concerns about booking deterioration and cancellation levels, with management indicating that cancellations were at the highest level compared to the previous year [5]. - The CEO described cancellations as "broad-based" without providing clear answers on the causes, leaving investors uncertain [5].