Witnessing An Insider Decision, Cornelius P. McCarthy III Exercises Options Valued At $1.85M At Medpace Hldgs

In a new SEC filing on July 22, it was revealed that III, Board Member at Medpace Hldgs MEDP, executed a significant exercise of company stock options.

What Happened: A notable Form 4 filing on Tuesday with the U.S. Securities and Exchange Commission revealed that III, Board Member at Medpace Hldgs, exercised stock options for 4,500 shares of MEDP, resulting in a transaction value of $1,854,045.

During Wednesday's morning session, Medpace Hldgs shares down by 2.25%, currently priced at $467.0. Considering the current price, III's 4,500 shares have a total value of $1,854,045.

Delving into Medpace Hldgs's Background

Medpace is a late-stage contract research organization that provides full-service drug-development and clinical trial services to small and midsize biotechnology, pharmaceutical, and medical-device firms. It also offers ancillary services such as bioanalytical laboratory services and imaging capabilities. The company was founded over 30 years ago and has over 5,400 employees across 40 countries. Medpace is headquartered in Cincinnati and its operations are principally based in the US, but it also operates in Europe, Asia, South America, Africa, and Australia. Cinven, a global private equity firm, acquired Medpace for $915 million in 2014 and exited its investment in 2018.

Medpace Hldgs: Delving into Financials

Positive Revenue Trend: Examining Medpace Hldgs's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 8.01% as of 30 June, 2025, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Health Care sector.

Profitability Metrics: Unlocking Value

• Gross Margin: The company shows a low gross margin of 29.84%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): Medpace Hldgs's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 3.16.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.72.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 35.49, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 6.65 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Medpace Hldgs's EV/EBITDA ratio stands at 26.65, surpassing industry benchmarks. This places the company in a position with a higher-than-average market valuation.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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Uncovering the Importance of Insider Activity

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Breaking Down the Significance of 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 Medpace Hldgs's Insider Trades.

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