A substantial insider sell was reported on August 21, by GRAHAM REEVE, COO at US Physical Therapy (NYSE:USPH), based on the recent SEC filing.

What Happened: REEVE's decision to sell 763 shares of US Physical Therapy was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value of the sale is $64,832.

As of Friday morning, US Physical Therapy shares are down by 0.0%, currently priced at $84.47.

Delving into US Physical Therapy's Background

US Physical Therapy Inc through its subsidiaries operates outpatient physical therapy clinics that provide pre-and post-operative care and treatment for orthopedic-related disorders, sports-related injuries, preventative care, rehabilitation of injured workers, and neurological-related injuries. The principal payment sources for the clinics' services are managed care programs, commercial health insurance, Medicare/Medicaid, workers' compensation insurance, and proceeds from personal injury cases. Its operating segment includes Physical therapy operations and Industrial injury prevention services. The company generates maximum revenue from the Physical therapy operations segment.

US Physical Therapy: Financial Performance Dissected

Positive Revenue Trend: Examining US Physical Therapy's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 18.04% as of 30 June, 2025, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Health Care sector.

Profitability Metrics:

• Gross Margin: The company faces challenges with a low gross margin of 21.09%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): With an EPS below industry norms, US Physical Therapy exhibits below-average bottom-line performance with a current EPS of 0.58.

Debt Management: With a below-average debt-to-equity ratio of 0.61, US Physical Therapy adopts a prudent financial strategy, indicating a balanced approach to debt management.

Valuation Metrics: A Closer Look

• Price to Earnings (P/E) Ratio: US Physical Therapy's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 36.89.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 1.75 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio of 15.34, the company's market valuation exceeds industry averages.

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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Exploring the Significance of Insider Trading

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.

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

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Breaking Down the Significance of Transaction Codes

Examining transactions, investors often concentrate on those unfolding in the open market, meticulously 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 indicates 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 US Physical Therapy's Insider Trades.

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