A large exercise of company stock options by Steven H Collis, Executive Chairman at Cencora COR was disclosed in a new SEC filing on October 23, as part of an insider exercise.

What Happened: Collis, Executive Chairman at Cencora, exercised stock options for 21,509 shares of COR stock. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The exercise price of the options was $89.58 per share.

The latest update on Thursday morning shows Cencora shares down by 0.0%, trading at $234.52. At this price, Collis’s 21,509 shares are worth $3,117,514.

Get to Know Cencora Better

Cencora is one of three domestic leading pharmaceutical wholesalers. It sources and distributes branded, generic, and specialty pharmaceutical products to pharmacies (retail chains, independent, and mail order), hospital networks, and healthcare providers. It and McKesson and Cardinal Health constitute over 90% of the us pharmaceutical wholesale industry. Cencora also provides commercialization services for manufacturers of pharmaceuticals and medical devices, global specialty drug logistics (World Courier), and animal health product distribution (MWI Animal Health). Cencora expanded its international presence in 2021 by purchasing Alliance Healthcare, one of the leading drug wholesalers in Europe.

Key Indicators: Cencora’s Financial Health

Positive Revenue Trend: Examining Cencora’s financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 10.9% as of 30 June, 2024, 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.

Interpreting Earnings Metrics:

• Gross Margin: With a low gross margin of 3.25%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Cencora’s EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 2.44.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 5.11, caution is advised due to increased financial risk.

Financial Valuation:

• Price to Earnings (P/E) Ratio: The P/E ratio of 25.44 is lower than the industry average, implying a discounted valuation for Cencora’s stock.

• Price to Sales (P/S) Ratio: With a P/S ratio of 0.17 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): Cencora’s EV/EBITDA ratio stands at 12.75, surpassing industry benchmarks. This places the company in a position with a higher-than-average market valuation.

Market Capitalization Highlights: Above the industry average, the company’s market capitalization signifies a significant scale, indicating strong confidence and market prominence.

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Understanding the Significance of Insider Transactions

While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.

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.

Transaction Codes To Focus On

For investors, a primary focus lies on transactions occurring in the open market, as indicated 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 Cencora’s Insider Trades.

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