ERIC SEMLER, Director at Semler Scientific SMLR, disclosed an insider purchase on November 12, based on a new SEC filing.

What Happened: SEMLER made a significant move by purchasing 50,000 shares of Semler Scientific as reported in a Form 4 filing with the U.S. Securities and Exchange Commission. The transaction’s total worth stands at $1,896,500.

The latest market snapshot at Tuesday morning reveals Semler Scientific shares down by 0.46%, trading at $51.9.

All You Need to Know About Semler Scientific

Semler Scientific Inc is a United States based company that is engaged in providing technology solutions to improve the clinical effectiveness and efficiency of healthcare providers. It focuses on developing, manufacturing, and marketing proprietary products and services that assist customers, including insurance plans, physicians, and risk assessment groups, in evaluating and treating chronic diseases. The company markets its vascular-testing product under the QuantaFlo brand, which is a four-minute in-office blood flow test.

Unraveling the Financial Story of Semler Scientific

Revenue Challenges: Semler Scientific’s revenue growth over 3 months faced difficulties. As of 30 September, 2024, the company experienced a decline of approximately -17.19%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Health Care sector.

Exploring Profitability:

• Gross Margin: The company maintains a high gross margin of 91.44%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): Semler Scientific’s EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 0.8.

Debt Management: Semler Scientific’s debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.0.

Analyzing Market Valuation:

• Price to Earnings (P/E) Ratio: The P/E ratio of 25.47 is lower than the industry average, implying a discounted valuation for Semler Scientific’s stock.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 6.85 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Indicated by a lower-than-industry-average EV/EBITDA ratio of 17.64, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.

Market Capitalization Analysis: Positioned below industry benchmarks, the company’s market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

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Delving Into the Significance of Insider Transactions

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

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

Pointing towards optimism, a company insider’s new purchase signals their positive anticipation for the stock to rise.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

Unlocking the Meaning of Transaction Codes

When dissecting transactions, the focal point for investors is often those occurring 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 Semler Scientific’s Insider Trades.

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