Addus HomeCare President and COO Sold $660K In Company Stock

W. Bradley Bickham, President and COO at Addus HomeCare ADUS, reported an insider sell on September 3, according to a new SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday outlined that Bickham executed a sale of 5,000 shares of Addus HomeCare with a total value of $660,912.

As of Wednesday morning, Addus HomeCare shares are down by 0.0%, currently priced at $130.01.

Get to Know Addus HomeCare Better

Addus HomeCare Corp is engaged in the provision of in-home personal care services. It operates through the segments such as Personal care segment, which is a key revenue driver, provides non-medical assistance with activities of daily living, primarily to persons who are at risk of hospitalization or institutionalization, such as the elderly, chronically ill and disabled. The Hospice segment provides physical, emotional and spiritual care for people who are terminally ill and their families. Its Home health segment provides services that are primarily medical in nature to those individuals who may require assistance during an illness or after surgery.

Addus HomeCare's Economic Impact: An Analysis

Revenue Growth: Addus HomeCare's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 10.36%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Health Care sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Exploring Profitability:

• Gross Margin: The company sets a benchmark with a high gross margin of 32.47%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): Addus HomeCare's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 1.12.

Debt Management: Addus HomeCare's debt-to-equity ratio is below the industry average at 0.05, reflecting a lower dependency on debt financing and a more conservative financial approach.

Understanding Financial Valuation:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 30.96 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The P/S ratio of 1.91 is lower than the industry average, implying a discounted valuation for Addus HomeCare's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Addus HomeCare's EV/EBITDA ratio, lower than industry averages at 19.09, indicates attractively priced shares.

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Uncovering the Importance of Insider Activity

Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.

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.

Exploring Key Transaction Codes

For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes 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 Addus HomeCare's Insider Trades.

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