Revealing a significant insider sell on February 13, Raymond B Greer, Director at Lifevantage LFVN, as per the latest SEC filing.
What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday, Greer sold 8,000 shares of Lifevantage. The total transaction value is $161,221.
The latest market snapshot at Thursday morning reveals Lifevantage shares down by 1.81%, trading at $19.01.
Get to Know Lifevantage Better
Lifevantage Corp is engaged in the identification, research, development, and distribution of nutraceutical dietary supplements and skincare products. It offers products such as Protandim, a scientifically-validated dietary supplement; LifeVantage TrueScience, an anti-aging skincare product; Axio energy drink mixes; and PhysIQ, a weight management system and other product Geographically, its products are sold in the regions of the United States, Japan, Hong Kong, Australia, Canada, Philippines, Mexico, Thailand, the United Kingdom, and the Netherlands.
A Deep Dive into Lifevantage's Financials
Revenue Growth: Lifevantage's revenue growth over a period of 3 months has faced challenges. As of 30 September, 2024, the company experienced a revenue decline of approximately -8.08%. This indicates a decrease in the company's top-line earnings. When compared to others in the Consumer Staples sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Key Insights into Profitability Metrics:
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Gross Margin: Achieving a high gross margin of 79.9%, the company performs well in terms of cost management and profitability within its sector.
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Earnings per Share (EPS): Lifevantage's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.15.
Debt Management: Lifevantage's debt-to-equity ratio surpasses industry norms, standing at 0.48. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
Valuation Overview:
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Price to Earnings (P/E) Ratio: A higher-than-average P/E ratio of 33.96 suggests caution, as the stock may be overvalued in the eyes of investors.
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Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.2, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 16.55 reflects market recognition of Lifevantage's value, positioning it as more highly valued compared to industry peers.
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
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Understanding the Significance of Insider Transactions
Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.
When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Navigating the World of Insider Transaction Codes
When analyzing transactions, investors tend to focus on those in the open market, 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 Lifevantage's Insider Trades.
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