Insider Transaction: Agostino Ricupati Sells $5.52M Worth Of Cooper Companies Shares

Agostino Ricupati, SVP & CAO at Cooper Companies COO, executed a substantial insider sell on March 20, according to an SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday, Ricupati sold 54,724 shares of Cooper Companies. The total transaction value is $5,521,230.

The latest market snapshot at Thursday morning reveals Cooper Companies shares down by 0.0%, trading at $101.66.

Discovering Cooper Companies: A Closer Look

The Cooper Companies is one of the largest eye care companies in the U.S. It operates in two segments: CooperVision and CooperSurgical. CooperVision is a pure-play contact lens business and is composed of a suite of spherical, multifocal, and toric contact lenses. The company also has one of the most comprehensive specialty lens portfolios in the world. With brands including Proclear, Biofinity, MyDay, and clariti, Cooper controls roughly a quarter of the U.S. contact lens market. CooperSurgical, founded in 1990, is made up of equipment related to reproductive care, fertility, and women's care. Cooper has the broadest medical device coverage of the entire IVF cycle. It also has Paragard, the only hormone-free IUD in the U.S., and controls 17% of the U.S. IUD market.

Understanding the Numbers: Cooper Companies's Finances

Revenue Growth: Cooper Companies's revenue growth over a period of 3 months has been noteworthy. As of 31 January, 2024, the company achieved a revenue growth rate of approximately 8.51%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Health Care sector.

Evaluating Earnings Performance:

• Gross Margin: The company excels with a remarkable gross margin of 66.96%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): Cooper Companies's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.41.

Debt Management: Cooper Companies's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.36, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Valuation Overview:

• Price to Earnings (P/E) Ratio: A higher-than-average P/E ratio of 69.76 suggests caution, as the stock may be overvalued in the eyes of investors.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 5.53, Cooper Companies's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Cooper Companies's EV/EBITDA ratio of 25.54 exceeds industry averages, indicating a premium valuation in the market

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

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The Importance of Insider Transactions

Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Important Transaction Codes

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.

Check Out The Full List Of Cooper Companies's Insider Trades.

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