Surgery Partners Recent Insider Activity

Bradley Owens, National Group President at Surgery Partners SGRY, executed a substantial insider sell on June 3, according to an SEC filing.

What Happened: Owens's recent move involves selling 6,000 shares of Surgery Partners. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total value is $165,900.

At Tuesday morning, Surgery Partners shares are down by 0.0%, trading at $26.49.

Discovering Surgery Partners: A Closer Look

Surgery Partners Inc is a healthcare services company with an integrated outpatient delivery model focused on providing quality, cost-effective solutions for surgical and related ancillary care in support of both patients and physicians. It operates in two segments: Surgical Facility Services and Ancillary Services out of which the Surgical Facility Services segment accounts for the majority of revenue.

Surgery Partners: Financial Performance Dissected

Revenue Growth: Surgery Partners displayed positive results in 3 months. As of 31 March, 2024, the company achieved a solid revenue growth rate of approximately 7.69%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Health Care sector.

Interpreting Earnings Metrics:

• Gross Margin: The company shows a low gross margin of 21.65%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Surgery Partners's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of -0.1.

Debt Management: With a below-average debt-to-equity ratio of 1.61, Surgery Partners adopts a prudent financial strategy, indicating a balanced approach to debt management.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: Surgery Partners's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 2649.0.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.19, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Surgery Partners's EV/EBITDA ratio at 13.33 suggests potential undervaluation, falling below industry averages.

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

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Understanding the Significance of Insider Transactions

Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Understanding Crucial Transaction Codes

Examining transactions, investors often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates 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 Surgery Partners's Insider Trades.

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