Christine Sacco At Prestige Consumer Capitalizes: Options Exercised, Resulting In $1.29M

A significant insider transaction involving the exercise of company stock options was reported on November 15, by Christine Sacco, Chief Financial Officer at Prestige Consumer PBH, as per the latest SEC filing.

What Happened: In an insider options sale disclosed in a Form 4 filing on Friday with the U.S. Securities and Exchange Commission, Sacco, Chief Financial Officer at Prestige Consumer, exercised stock options for 24,686 shares of PBH. The transaction value amounted to $1,289,349.

The Friday morning market activity shows Prestige Consumer shares down by 0.0%, trading at $82.79. This implies a total value of $1,289,349 for Sacco's 24,686 shares.

All You Need to Know About Prestige Consumer

Prestige Consumer Healthcare is one of the largest pure-play over-the-counter healthcare providers. It has a diverse portfolio composed of leading brands in niche consumer health categories. Prestige's key brands include Clear Eyes (redness relief), Dramamine (motion sickness relief), Monistat (vaginal anti-fungal), and Summer's Eve (feminine hygiene), and many of its brands enjoy category leadership and recommendations from medical professionals. The firm mainly plays in North America where it generates roughly 85% of its total revenue, and the remaining sales come from Australia, New Zealand, and certain Asian markets.

Financial Insights: Prestige Consumer

Revenue Growth: Prestige Consumer's revenue growth over a period of 3 months has faced challenges. As of 30 September, 2024, the company experienced a revenue decline of approximately -0.88%. This indicates a decrease 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.

Navigating Financial Profits:

• Gross Margin: The company shows a low gross margin of 55.46%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): With an EPS below industry norms, Prestige Consumer exhibits below-average bottom-line performance with a current EPS of 1.1.

Debt Management: Prestige Consumer's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.61.

Valuation Overview:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 20.19 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 3.74, 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): Prestige Consumer's EV/EBITDA ratio, lower than industry averages at 14.33, indicates attractively priced shares.

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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Exploring the Significance of Insider Trading

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

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 Prestige Consumer's Insider Trades.

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