Cencora Recent Insider Activity

Revealing a significant insider sell on March 20, Elizabeth S Campbell, Executive Vice President at Cencora COR, as per the latest SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday, Campbell sold 6,977 shares of Cencora. The total transaction value is $1,661,363.

In the Thursday's morning session, Cencora's shares are currently trading at $242.41, experiencing a up of 0.22%.

Discovering Cencora: A Closer Look

Cencora is one of three domestic leading pharmaceutical wholesalers. It sources and distributes branded, generic, and specialty pharmaceutical products to pharmacies (retail chains, independent, and mail order), hospital networks, and healthcare providers. It and McKesson and Cardinal Health constitute over 90% of the U.S. pharmaceutical wholesale industry. Cencora also provides commercialization services for manufacturers of pharmaceuticals and medical devices, global specialty drug logistics (World Courier), and animal health product distribution (MWI Animal Health). Cencora expanded its international presence in 2021 by purchasing Alliance Healthcare, one of the leading drug wholesalers in Europe.

Cencora: Delving into Financials

Positive Revenue Trend: Examining Cencora's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 14.97% as of 31 December, 2023, showcasing a substantial increase in 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.

Navigating Financial Profits:

• Gross Margin: The company shows a low gross margin of 3.42%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): Cencora's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 3.01.

Debt Management: With a high debt-to-equity ratio of 5.24, Cencora faces challenges in effectively managing its debt levels, indicating potential financial strain.

Market Valuation:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 26.35 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 0.18 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): Cencora's EV/EBITDA ratio of 13.51 exceeds industry averages, indicating a premium valuation in the market

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

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The Relevance of Insider Transactions

In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.

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.

A Closer Look at Important Transaction Codes

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates 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 Cencora's Insider Trades.

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