On December 2, a recent SEC filing unveiled that Emily Woodworth, SVP at Boston Scientific BSX made an insider sell.

What Happened: Woodworth’s decision to sell 1,336 shares of Boston Scientific was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total value of the sale is $121,105.

The latest update on Tuesday morning shows Boston Scientific shares down by 0.53%, trading at $89.95.

Get to Know Boston Scientific Better

Boston Scientific produces less invasive medical devices that are inserted into the human body through small openings or cuts. It manufactures products for use in angioplasty, blood clot filtration, kidney stone management, cardiac rhythm management, catheter-directed ultrasound imaging, upper gastrointestinal tract diagnostics, interventional oncology, neuromodulation for chronic pain, and treatment of incontinence. The firm markets its devices to healthcare professionals and institutions globally. Foreign sales account for nearly half of the firm’s total sales.

Breaking Down Boston Scientific’s Financial Performance

Revenue Growth: Boston Scientific’s remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 19.34%. This signifies a substantial increase in the company’s top-line earnings. When compared to others in the Health Care sector, the company excelled with a growth rate higher than the average among peers.

Profitability Metrics:

• Gross Margin: The company sets a benchmark with a high gross margin of 68.83%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): Boston Scientific’s EPS reflects a decline, falling below the industry average with a current EPS of 0.32.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.54.

Analyzing Market Valuation:

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 74.74 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 8.43 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 lower than industry benchmarks at 38.12, Boston Scientific presents an attractive value opportunity.

Market Capitalization: Positioned above industry average, the company’s market capitalization underscores its superiority in size, indicative of a strong market presence.

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Illuminating the Importance of Insider Transactions

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.

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.

Cracking Transaction Codes

When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates 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 Boston Scientific’s Insider Trades.

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