QUADROS ELIZABETH BETTEN Takes Money Off The Table, Sells $1.48M In Option Care Health Stock

Disclosed on August 22, QUADROS ELIZABETH BETTEN, Director at Option Care Health OPCH, executed a substantial insider sell as per the latest SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Thursday showed that BETTEN sold 47,531 shares of Option Care Health. The total transaction amounted to $1,477,529.

As of Friday morning, Option Care Health shares are down by 0.0%, currently priced at $31.08.

All You Need to Know About Option Care Health

Option Care Health Inc is the provider of home and alternate-site infusion services. It provides treatment for bleeding disorders, neurological disorders, heart failure, anti-infectives, and chronic inflammatory disorders among others.

A Deep Dive into Option Care Health's Financials

Revenue Growth: Option Care Health displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 14.79%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Health Care sector.

Insights into Profitability:

• Gross Margin: With a low gross margin of 20.32%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Option Care Health's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.31.

Debt Management: Option Care Health's debt-to-equity ratio is below the industry average. With a ratio of 0.87, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 25.92, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 1.2, 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): Option Care Health's EV/EBITDA ratio, lower than industry averages at 15.8, indicates attractively priced shares.

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

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The Impact of Insider Transactions on Investments

Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.

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

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Deciphering Transaction Codes in Insider Filings

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 Option Care Health's Insider Trades.

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