Insider Move: R. Dirk Allison Exercises Options, Realizing $2.36M At Addus HomeCare

On August 21, it was revealed in an SEC filing that R. Dirk Allison, Chairman and CEO at Addus HomeCare ADUS executed a significant exercise of company stock options.

What Happened: Allison, Chairman and CEO at Addus HomeCare, made a strategic move by exercising stock options for 25,000 shares of ADUS as detailed in a Form 4 filing on Thursday with the U.S. Securities and Exchange Commission. The transaction value amounted to $2,361,750.

Addus HomeCare shares are trading, exhibiting down of 0.0% and priced at $114.18 during Friday's morning. This values Allison's 25,000 shares at $2,361,750.

Delving into Addus HomeCare's Background

Addus HomeCare Corp is engaged in the provision of in-home personal care services. It operates through the segments such as Personal care segment, which is a key revenue driver, provides non-medical assistance with activities of daily living, mainly to persons who are at risk of hospitalization or institutionalization, such as the elderly, chronically ill and disabled. The Hospice segment provides physical, emotional and spiritual care for people who are terminally ill and their families. Its Home health segment provides services that are medical in nature to those individuals who may require assistance during an illness or after surgery.

Financial Insights: Addus HomeCare

Revenue Growth: Addus HomeCare's remarkable performance in 3 months is evident. As of 30 June, 2025, the company achieved an impressive revenue growth rate of 21.79%. This signifies a substantial 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.

Interpreting Earnings Metrics:

• Gross Margin: With a high gross margin of 32.59%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Addus HomeCare's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 1.22.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.22.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 25.21, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: With a P/S ratio of 1.64 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a below-average EV/EBITDA ratio of 16.49, Addus HomeCare presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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Why Pay Attention to Insider Transactions

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

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.

Exploring Key Transaction Codes

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely 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 Addus HomeCare's Insider Trades.

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