10% Owner Of Astrana Health Sold $10.55M In Stock

It was reported on January 23, that ALLIED PHYSICIANS OF CALIFORNIA A PROFESSIONAL MEDICAL Corp, 10% Owner at Astrana Health ASTH executed a significant insider sell, according to an SEC filing.

What Happened: After conducting a thorough analysis, Corp sold 300,000 shares of Astrana Health. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total transaction value is $10,551,000.

The latest update on Thursday morning shows Astrana Health shares down by 0.32%, trading at $37.9.

Delving into Astrana Health's Background

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.

Astrana Health's Economic Impact: An Analysis

Revenue Growth: Astrana Health displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 37.49%. 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.

Key Profitability Indicators:

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

• Earnings per Share (EPS): With an EPS below industry norms, Astrana Health exhibits below-average bottom-line performance with a current EPS of 0.34.

Debt Management: Astrana Health's debt-to-equity ratio is below the industry average. With a ratio of 0.68, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Valuation Metrics: A Closer Look

• Price to Earnings (P/E) Ratio: The current P/E ratio of 29.25 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The P/S ratio of 1.05 is lower than the industry average, implying a discounted valuation for Astrana Health's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a lower-than-industry-average EV/EBITDA ratio of 13.41, Astrana Health presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

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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Why Insider Transactions Are Key in Investment Decisions

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

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.

Navigating the World of Insider 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 Astrana Health's Insider Trades.

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