Chief Financial Officer Of US Physical Therapy Makes $193K Sale

Revealing a significant insider sell on March 14, Carey Hendrickson, Chief Financial Officer at US Physical Therapy USPH, as per the latest SEC filing.

What Happened: After conducting a thorough analysis, Hendrickson sold 1,800 shares of US Physical Therapy. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total transaction value is $193,103.

US Physical Therapy's shares are actively trading at $106.55, experiencing a down of 0.0% during Friday's morning session.

Unveiling the Story Behind US Physical Therapy

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

Revenue Growth: Over the 3 months period, US Physical Therapy showcased positive performance, achieving a revenue growth rate of 9.65% as of 31 December, 2023. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Health Care sector.

Navigating Financial Profits:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 19.71%, indicating potential difficulties in maintaining 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 0.38.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.54.

Assessing Valuation Metrics:

• 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 83.24.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 2.5 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Boasting an EV/EBITDA ratio of 23.01, US Physical Therapy demonstrates a robust market valuation, outperforming industry benchmarks.

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

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The Impact of Insider Transactions on Investments

While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.

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.

Transaction Codes To Focus On

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 US Physical Therapy's Insider Trades.

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