Insider Move: Thomas Lam Exercises Options, Realizing $898K At Astrana Health

A substantial insider activity was disclosed on September 11, as Lam, Director at Astrana Health ASTH, reported the exercise of a large sell of company stock options.

What Happened: Lam, Director at Astrana Health, made a strategic move by exercising stock options for 28,046 shares of ASTH as detailed in a Form 4 filing on Wednesday with the U.S. Securities and Exchange Commission. The transaction value amounted to $898,313.

As of Thursday morning, Astrana Health shares are up by 3.26%, with a current price of $50.68. This implies that Lam's 28,046 shares have a value of $898,313.

About Astrana Health

Astrana Health Inc is a patient-centered, physician-centric integrated population health management company. The company is working to provide coordinated, outcomes-based medical care cost-effectively. It is focused on physicians providing high-quality medical care, population health management, and care coordination for patients, particularly senior patients and patients with multiple chronic conditions. Its operating segment is the healthcare delivery segment.

Financial Insights: Astrana Health

Revenue Growth: Astrana Health displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 39.65%. 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.

Holistic Profitability Examination:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 15.11%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): Astrana Health's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.4.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.7.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: The P/E ratio of 34.09 is lower than the industry average, implying a discounted valuation for Astrana Health's stock.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.46, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Astrana Health's EV/EBITDA ratio at 16.82 suggests potential undervaluation, falling below industry averages.

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 Insider Activity Matters in Finance

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

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

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Understanding Crucial Transaction Codes

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as 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 Astrana Health's Insider Trades.

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