Insider Selling: Stephen P Carey Unloads $317K Of ANI Pharmaceuticals Stock

Stephen P Carey, SVP & CFO at ANI Pharmaceuticals ANIP, disclosed an insider sell on June 6, according to a recent SEC filing.

What Happened: Carey's recent move involves selling 5,000 shares of ANI Pharmaceuticals. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value is $317,900.

At Thursday morning, ANI Pharmaceuticals shares are down by 0.07%, trading at $66.95.

Get to Know ANI Pharmaceuticals Better

ANI Pharmaceuticals Inc develops, manufactures, and markets generic prescription pharmaceuticals. It manufactures liquid, powder, and oral solid dose products. Its areas of product development include narcotics, oncolytic, hormones and steroids, and complex formulations involving extended release and combination products. Some of its generic products include Erythromycin ethyl succinate, Esterified Estrogen with Methyltestosterone (EEMT), Etodolac Fenofibrate, Fluvoxamine, Hydrocortisone Enema and Vancomycin. Its geographical segments are the United States and Canada, of which the majority of its revenue comes from the United States.

ANI Pharmaceuticals: A Financial Overview

Revenue Growth: ANI Pharmaceuticals's remarkable performance in 3 months is evident. As of 31 March, 2024, the company achieved an impressive revenue growth rate of 28.7%. This signifies 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.

Interpreting Earnings Metrics:

• Gross Margin: The company shows a low gross margin of 64.23%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): ANI Pharmaceuticals's EPS reflects a decline, falling below the industry average with a current EPS of 0.84.

Debt Management: ANI Pharmaceuticals's debt-to-equity ratio is below the industry average at 0.63, reflecting a lower dependency on debt financing and a more conservative financial approach.

Financial Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 41.61 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The P/S ratio of 2.45 is lower than the industry average, implying a discounted valuation for ANI Pharmaceuticals's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 11.66 is above the industry average, suggesting that the market values the company more highly for each unit of EBITDA. This could be attributed to factors such as strong growth prospects or superior operational efficiency.

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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Why Pay Attention to Insider Transactions

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Unlocking the Meaning of Transaction Codes

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals 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 ANI Pharmaceuticals's Insider Trades.

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