Medpace Hldgs CEO Sold $3.83M In Company Stock

A substantial insider sell was reported on May 29, by August J Troendle, CEO at Medpace Hldgs MEDP, based on the recent SEC filing.

What Happened: Troendle's decision to sell 9,682 shares of Medpace Hldgs was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the sale is $3,828,057.

Monitoring the market, Medpace Hldgs's shares down by 0.04% at $387.82 during Thursday's morning.

All You Need to Know About Medpace Hldgs

Medpace is a late-stage contract research organization that provides full-service drug-development and clinical trial services to small and midsize biotechnology, pharmaceutical, and medical-device firms. It also offers ancillary services such as bioanalytical laboratory services and imaging capabilities. The company was founded over 30 years ago and has over 5,400 employees across 40 countries. Medpace is headquartered in Cincinnati and its operations are principally based in the us, but it also operates in Europe, Asia, South America, Africa, and Australia. Cinven, a global private equity firm, acquired Medpace for $915 million in 2014 and exited its investment in 2018.

Medpace Hldgs: Financial Performance Dissected

Revenue Growth: Medpace Hldgs's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 17.73%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Health Care sector.

Key Profitability Indicators:

• Gross Margin: With a low gross margin of 30.36%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 3.32, Medpace Hldgs showcases strong earnings per share.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.2.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 39.51 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 6.28 is above industry norms, reflecting an elevated valuation for Medpace Hldgs's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 30.72, the company's EV/EBITDA ratio outperforms industry norms, reflecting positive market perception. This positioning indicates optimistic expectations for the company's future performance.

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

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The Impact of Insider Transactions on Investments

It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.

Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Important Transaction Codes

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Medpace Hldgs's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.