John L Higgins At Bio-Techne Capitalizes: Options Exercised, Resulting In $300K

Highlighted on July 10, it was unveiled in an SEC filing that Higgins, Director at Bio-Techne TECH, executed a significant transaction involving the exercise of company stock options.

What Happened: In an insider options sale disclosed in a Form 4 filing on Wednesday with the U.S. Securities and Exchange Commission, Higgins, Director at Bio-Techne, exercised stock options for 6,000 shares of TECH. The transaction value amounted to $300,960.

Bio-Techne shares are trading up 3.99% at $74.94 at the time of this writing on Thursday morning. Since the current price is $74.94, this makes Higgins's 6,000 shares worth $300,960.

Delving into Bio-Techne's Background

Based in Minnesota, Bio-Techne is a life sciences manufacturer supplying consumables and instruments for the pharma, biotech, academic, and diagnostic markets. It reports in two segments: protein sciences (75% of revenue) and diagnostics and genomics (25%). The protein sciences segment sells reagents and analytical instruments used in life sciences research, including antibodies used in protein analysis. The diagnostics and genomics segment sells diagnostic reagents, molecular diagnostics, and spatial biology products. The United States accounts for about 55% of revenue. The firm also has operations in Europe, the Middle East, and Africa (20% of sales), the UK (5%), and Asia-Pacific (15%), with the rest of the world accounting for the remaining 5%.

Bio-Techne: Financial Performance Dissected

Positive Revenue Trend: Examining Bio-Techne's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 3.16% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Health Care sector.

Evaluating Earnings Performance:

• Gross Margin: The company sets a benchmark with a high gross margin of 67.43%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): Bio-Techne's EPS is below the industry average. The company faced challenges with a current EPS of 0.31. This suggests a potential decline in earnings.

Debt Management: Bio-Techne's debt-to-equity ratio is below the industry average. With a ratio of 0.25, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: The P/E ratio of 57.66 is lower than the industry average, implying a discounted valuation for Bio-Techne's stock.

• Price to Sales (P/S) Ratio: The current P/S ratio of 10.06 is above industry norms, reflecting an elevated valuation for Bio-Techne's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Boasting an EV/EBITDA ratio of 32.53, Bio-Techne demonstrates a robust market valuation, outperforming industry benchmarks.

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

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Understanding the Significance of Insider Transactions

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Important Transaction Codes

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely 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 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 Bio-Techne's Insider Trades.

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