Thomas Westrick Takes Money Off The Table, Sells $222K In GE HealthCare Techs Stock

Making a noteworthy insider sell on August 7, Thomas Westrick, CEO at GE HealthCare Techs GEHC, is reported in the latest SEC filing.

What Happened: Westrick's decision to sell 2,750 shares of GE HealthCare Techs was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the sale is $222,145.

The latest update on Thursday morning shows GE HealthCare Techs shares up by 2.48%, trading at $81.3.

Discovering GE HealthCare Techs: A Closer Look

GE HealthCare Technologies is a leading medical technology firm with leading market share in imaging and ultrasound equipment. The company reports four major segments: imaging (54% of revenue), ultrasound (18%), patient care solutions (16%), and pharmaceutical diagnostics (12%). The company's sales are geographically diverse, with the United States, EMEA, China, and the rest of the world accounting for 44%, 26%, 14%, and 16% respectively. We estimate approximately half of its revenue is recurring, which consists of servicing (33% of revenue), pharmaceutical diagnostics (12%), and digital solutions (6%).

GE HealthCare Techs's Financial Performance

Positive Revenue Trend: Examining GE HealthCare Techs's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 0.46% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Health Care sector.

Exploring Profitability:

• Gross Margin: The company shows a low gross margin of 41.37%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): GE HealthCare Techs's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 0.94.

Debt Management: With a high debt-to-equity ratio of 1.24, GE HealthCare Techs faces challenges in effectively managing its debt levels, indicating potential financial strain.

Understanding Financial Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 22.92 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The P/S ratio of 1.86 is lower than the industry average, implying a discounted valuation for GE HealthCare Techs's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry averages at 12.65, GE HealthCare Techs could be considered undervalued.

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

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Illuminating the Importance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Cracking Transaction Codes

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of GE HealthCare Techs's Insider Trades.

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