Engaging In Insider Activity, Kaitlin M. Kestenberg-Messina At ADMA Biologics Exercises Options Worth $28K

Disclosed in a recent SEC filing on February 4, Kestenberg-Messina, COO and SVP at ADMA Biologics ADMA, made a noteworthy transaction involving the exercise of company stock options.

What Happened: Kestenberg-Messina, COO and SVP at ADMA Biologics, exercised stock options for 5,000 shares of ADMA stock. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The exercise price of the options was $10.8 per share.

Currently, ADMA Biologics shares are trading up 0.24%, priced at $16.51 during Tuesday's morning. This values Kestenberg-Messina's 5,000 shares at $28,550.

About ADMA Biologics

ADMA Biologics Inc is an end-to-end commercial biopharmaceutical company dedicated to manufacturing, marketing and developing specialty plasma-derived biologics for the treatment of immunodeficient patients at risk for infection and others at risk for certain infectious diseases. The segments of the company are ADMA BioManufacturing which generates maximum revenue and Plasma Collection Centres, and corporate segment. The company sells plasma-derived intermediate fractions to certain customers, which are generated as part of its FDA-approved manufacturing process for IG and IVIG products. It also provides laboratory contracting services to certain customers and anticipates providing contract filling, labeling and packing services. The company derives maximum revenue from United States.

Unraveling the Financial Story of ADMA Biologics

Revenue Growth: Over the 3 months period, ADMA Biologics showcased positive performance, achieving a revenue growth rate of 78.13% as of 30 September, 2024. This reflects a substantial 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.

Key Insights into Profitability Metrics:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 49.78%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): ADMA Biologics's EPS is below the industry average. The company faced challenges with a current EPS of 0.15. This suggests a potential decline in earnings.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 0.48, caution is advised due to increased financial risk.

Financial Valuation:

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 61.0 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

• Price to Sales (P/S) Ratio: The current P/S ratio of 10.23 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): ADMA Biologics's EV/EBITDA ratio of 39.64 exceeds industry averages, indicating a premium valuation in the market

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

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

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.

Transaction Codes To Focus On

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 ADMA Biologics's Insider Trades.

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