Insider Activity Update: Jan Makela Executes Options Exercise, Resulting In $849K At GE HealthCare Techs

Jan Makela, CEO at GE HealthCare Techs GEHC, reported a large exercise of company stock options on May 15, according to a new SEC filing.

What Happened: A notable Form 4 filing on Wednesday with the U.S. Securities and Exchange Commission revealed that Makela, CEO at GE HealthCare Techs, exercised stock options for 87,182 shares of GEHC, resulting in a transaction value of $849,462.

The Thursday morning update indicates GE HealthCare Techs shares down by 0.4%, currently priced at $81.58. At this value, Makela's 87,182 shares are worth $849,462.

About GE HealthCare Techs

GE HealthCare Technologies Inc is a globally medical technology, pharmaceutical diagnostics, and digital solutions innovator company. It has four operating segments; Imaging, Ultrasound, Patient Care Solutions (PCS), and Pharmaceutical Diagnostics (PDx). It earns a majority of its revenue from the Imaging segment.

A Deep Dive into GE HealthCare Techs's Financials

Revenue Challenges: GE HealthCare Techs's revenue growth over 3 months faced difficulties. As of 31 March, 2024, the company experienced a decline of approximately -1.21%. This indicates a decrease in 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.

Key Insights into Profitability Metrics:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 40.9%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): GE HealthCare Techs's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.82.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.31, caution is advised due to increased financial risk.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: The P/E ratio of 23.81 is lower than the industry average, implying a discounted valuation for GE HealthCare Techs's stock.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 1.93, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio of 12.82 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.

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.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Why Pay Attention to Insider Transactions

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.

Cracking 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 GE HealthCare Techs's Insider Trades.

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