COO Of US Physical Therapy Makes $166K Sale

Revealing a significant insider sell on November 12, Graham Reeve, COO at US Physical Therapy USPH, as per the latest SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday, Reeve sold 1,724 shares of US Physical Therapy. The total transaction value is $166,003.

Monitoring the market, US Physical Therapy's shares down by 0.0% at $92.1 during Wednesday's morning.

Get to Know US Physical Therapy Better

US Physical Therapy Inc through its subsidiaries operates outpatient physical therapy clinics that provide pre-and post-operative care and treatment for orthopedic-related disorders, sports-related injuries, preventative care, rehabilitation of injured workers, and neurological-related injuries. The principal sources of payment for the clinics' services are managed care programs, commercial health insurance, Medicare/Medicaid, workers' compensation insurance, and proceeds from personal injury cases. Its operating segment includes Physical therapy operations and Industrial injury prevention services. The company generates maximum revenue from the Physical therapy operations segment.

Understanding the Numbers: US Physical Therapy's Finances

Positive Revenue Trend: Examining US Physical Therapy's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 0.5% as of 30 September, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Health Care sector.

Key Insights into Profitability Metrics:

• Gross Margin: The company shows a low gross margin of 17.34%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): US Physical Therapy's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.39.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.53.

Financial Valuation:

• Price to Earnings (P/E) Ratio: US Physical Therapy's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 104.66.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 2.15 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 22.77 positions the company as being more valued compared to industry benchmarks.

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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Navigating the Impact of Insider Transactions on Investments

Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.

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

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

Essential Transaction Codes Unveiled

When analyzing transactions, investors tend to focus on those in the open market, detailed 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 US Physical Therapy's Insider Trades.

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