Kenneth Sim At Astrana Health Decides to Exercises Options Worth $628K

A significant insider transaction involving the exercise of company stock options was reported on November 20, by Kenneth Sim, Executive Chairman at Astrana Health ASTH, as per the latest SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday revealed that Sim, Executive Chairman at Astrana Health in the Health Care sector, exercised stock options for 28,046 shares of ASTH stock. The exercise price of the options was $18.65 per share.

Astrana Health shares are currently trading up by 0.02%, with a current price of $41.05 as of Thursday morning. This brings the total value of Sim's 28,046 shares to $628,230.

Get to Know Astrana Health Better

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.

A Deep Dive into Astrana Health's Financials

Positive Revenue Trend: Examining Astrana Health's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 37.49% as of 30 September, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Health Care sector, the company excelled with a growth rate higher than the average among peers.

Key Insights into Profitability Metrics:

• Gross Margin: The company shows a low gross margin of 15.35%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Astrana Health's EPS reflects a decline, falling below the industry average with a current EPS of 0.34.

Debt Management: With a below-average debt-to-equity ratio of 0.68, Astrana Health adopts a prudent financial strategy, indicating a balanced approach to debt management.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 31.57 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The current P/S ratio of 1.14 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry benchmarks at 14.4, Astrana Health presents an attractive value opportunity.

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

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Why Insider Transactions Are Key in Investment Decisions

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per 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.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Deciphering Transaction Codes in Insider Filings

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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.

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