Insider Selling: R. Jeffrey Bailly Unloads $1.64M Of UFP Techs Stock

Disclosed on August 21, R. Jeffrey Bailly, CEO at UFP Techs UFPT, executed a substantial insider sell as per the latest SEC filing.

What Happened: Bailly's recent move involves selling 4,991 shares of UFP Techs. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value is $1,637,197.

In the Thursday's morning session, UFP Techs's shares are currently trading at $325.71, experiencing a down of 0.0%.

About UFP Techs

UFP Technologies Inc is a designer and custom manufacturer of components, subassemblies, products and packaging utilizing specialized foams, films, and plastics for the medical market. The company manufactures its products by converting raw materials using laminating, molding, radio frequency and impulse welding and fabricating manufacturing techniques. It is an important link in the medical device supply chain and a valued outsource partner to many of the top medical device manufacturers in the world. The company's single-use and single-patient devices and components are used in a wide range of medical devices, disposable wound care products, infection prevention, minimally invasive surgery, wearables, orthopedic soft goods, and orthopedic implant packaging.

A Deep Dive into UFP Techs's Financials

Revenue Growth: UFP Techs displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 10.14%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Health Care sector.

Profitability Metrics:

• Gross Margin: The company faces challenges with a low gross margin of 29.98%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): UFP Techs's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 1.77.

Debt Management: UFP Techs's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.15.

Financial Valuation:

• Price to Earnings (P/E) Ratio: UFP Techs's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 50.89.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 6.03, UFP Techs's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): UFP Techs's EV/EBITDA ratio of 34.45 exceeds industry averages, indicating a premium valuation in the market

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

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Why Pay Attention to Insider Transactions

Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

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.

Deciphering Transaction Codes in Insider Filings

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely 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 UFP Techs's Insider Trades.

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