Massive Insider Trade At US Physical Therapy

A substantial insider sell was reported on December 14, by Clayton Trier, Director at US Physical Therapy USPH, based on the recent SEC filing.

What Happened: Trier's decision to sell 1,170 shares of US Physical Therapy was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value of the sale is $107,944.

Tracking the Friday's morning session, US Physical Therapy shares are trading at $92.44, showing a down of 0.0%.

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.

US Physical Therapy's Financial Performance

Revenue Growth: US Physical Therapy displayed positive results in 3 months. As of 30 September, 2023, the company achieved a solid revenue growth rate of approximately 7.45%. This indicates a notable increase 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.

Analyzing Profitability Metrics:

• Gross Margin: With a low gross margin of 18.62%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): US Physical Therapy's EPS reflects a decline, falling below the industry average with a current EPS of 0.51.

Debt Management: US Physical Therapy's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.53.

Valuation Overview:

• 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 54.38.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 2.14 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 19.03, the company's EV/EBITDA ratio outperforms industry norms, reflecting positive market perception. This positioning indicates optimistic expectations for the company's future performance.

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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The Impact of Insider Transactions on Investments

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

A Closer Look at Important Transaction Codes

When it comes to 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 indicates 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.

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