Insider Decision: John Vong as Attorney-in-Fact Exercises Options At Astrana Health For $371K

Disclosed in a recent SEC filing on September 11, Attorney-in-Fact, Board Member at Astrana Health ASTH, made a noteworthy transaction involving the exercise of company stock options.

What Happened: Disclosed in a Form 4 filing on Wednesday with the U.S. Securities and Exchange Commission, Attorney-in-Fact, Board Member at Astrana Health, executed a strategic derivative sale. This involved exercising stock options for 11,000 shares of ASTH, resulting in a transaction value of $371,029.

The Thursday morning update indicates Astrana Health shares down by 0.0%, currently priced at $49.08. At this value, Attorney-in-Fact's 11,000 shares are worth $371,029.

About Astrana Health

Astrana Health Inc is a patient-centered, physician-centric integrated population health management company. The company is working to provide coordinated, outcomes-based medical care cost-effectively. It is focused on physicians providing high-quality medical care, population health management, and care coordination for patients, particularly senior patients and patients with multiple chronic conditions. Its operating segment is the healthcare delivery segment.

Understanding the Numbers: Astrana Health's Finances

Revenue Growth: Astrana Health displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 39.65%. This indicates a notable increase in the company's 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.

Key Profitability Indicators:

• Gross Margin: With a low gross margin of 15.11%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Astrana Health's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.4.

Debt Management: Astrana Health's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.7.

Navigating Market Valuation:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 34.09 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.46, 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): With a lower-than-industry-average EV/EBITDA ratio of 16.82, Astrana Health presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

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The Impact of Insider Transactions on Investments

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

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.

Cracking Transaction Codes

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously 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 Astrana Health's Insider Trades.

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