Insider Decision: Steven H Collis Offloads $12.20M Worth Of Cencora Stock

Disclosed on November 26, Steven H Collis, Executive Chairman at Cencora COR, executed a substantial insider sell as per the latest SEC filing.

What Happened: Collis opted to sell 50,000 shares of Cencora, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The transaction's total worth stands at $12,198,750.

Cencora shares are trading down 0.02% at $248.41 at the time of this writing on Wednesday morning.

Unveiling the Story Behind Cencora

Cencora is one of three domestic leading pharmaceutical wholesalers. It sources and distributes branded, generic, and specialty pharmaceutical products to pharmacies (retail chains, independent, and mail order), hospital networks, and healthcare providers. It and McKesson and Cardinal Health constitute over 90% of the us pharmaceutical wholesale industry. Cencora also provides commercialization services for manufacturers of pharmaceuticals and medical devices, global specialty drug logistics (World Courier), and animal health product distribution (MWI Animal Health). Cencora expanded its international presence in 2021 by purchasing Alliance Healthcare, one of the leading drug wholesalers in Europe.

Cencora: A Financial Overview

Revenue Growth: Cencora displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 6.48%. This indicates a notable increase in the company's 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 shows a low gross margin of 3.15%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): Cencora's EPS reflects a decline, falling below the industry average with a current EPS of 0.02.

Debt Management: Cencora's debt-to-equity ratio is notably higher than the industry average. With a ratio of 5.58, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Navigating Market Valuation:

• Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 32.99, Cencora's stock is perceived as being overvalued in the market.

• Price to Sales (P/S) Ratio: The P/S ratio of 0.17 is lower than the industry average, implying a discounted valuation for Cencora's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Cencora's EV/EBITDA ratio stands at 14.62, surpassing industry benchmarks. This places the company in a position with a higher-than-average market valuation.

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

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The Impact of Insider Transactions on Investments

In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.

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

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

A Deep Dive into Insider Transaction Codes

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 Cencora's Insider Trades.

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