Has the CSL share price finally bottomed out?

CSL Ltd (ASX: CSL) shares are finally showing signs of life after a brutal year for one of the ASX’s former market darlings.

At the time of writing, the CSL share price is up 1.39% to $99.27.

That puts the stock more than 5% higher over the past week, giving shareholders a bit of relief after months of heavy selling.

Still, there’s a long way to go.

CSL shares remain down almost 60% over the past 12 months.

It’s worth noting that the stock hit a decade low of $90 last week before buyers stepped back in.

So, has the CSL share price finally found a floor?

Why CSL has fallen so far

The pressure on CSL has been building for a while.

Investors have been dealing with weaker earnings momentum, guidance cuts, margin pressure, and concerns about how the business is being run after a difficult stretch.

The major blow came after interim Chief Executive Gordon Naylor completed his 90-day review, and the company lowered its FY26 outlook.

CSL now expects FY26 revenue of about US$15.2 billion on a constant currency basis, along with NPATA of about US$3.1 billion, excluding restructuring costs and impairments.

The company also pointed to pressure across several parts of the business. US immunoglobulin revenue is being affected by inventory normalisation, while weaker albumin pricing in China is weighing on the outlook.

Slower HEMGENIX growth and competition in iron have added to the mix.

The impairment charge has weighed on sentiment, with CSL expecting to recognise about US$5 billion of additional non-cash, pre-tax impairments across FY26 and FY27.

Insiders are buying after the fall

The recent director buying has given investors something else to watch.

Naylor bought 1,100 CSL shares on-market on 26 May for $107,800. Non-Executive Director Alison Watkins also bought 2,540 shares earlier in May for $250,595.

More recently, Chair Carolyn Hewson bought 1,036 shares for about $99,342.

That’s a positive signal, but it does not guarantee the sell-off is over. Directors can buy too early, and CSL still needs to show that earnings pressure is starting to ease.

But after a near-60% fall in the share price, the timing is hard to ignore.

It shows that several people inside the company are willing to buy, while confidence in the stock remains weak.

Has the sell-off gone too far?

That is the big question.

CSL is still a huge healthcare business, with strong positions across plasma, vaccines, iron, nephrology, and specialist medicines.

But investors aren’t just buying the stock just because of its old reputation.

The rebound from $90 shows some buyers are willing to step in at lower levels. But one good week is not enough to say the worst is over.

CSL now needs to show stronger earnings and margins, and a clearer path forward after the Vifor disappointment.

The post Has the CSL share price finally bottomed out? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.