Benzinga - by Benzinga Insights, Benzinga Staff Writer.
On May 7, a recent SEC filing unveiled that Neena M Patil, EVP & Chief Legal Officer at Jazz Pharmaceuticals (NASDAQ:JAZZ) made an insider sell.
What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday outlined that Patil executed a sale of 5,000 shares of Jazz Pharmaceuticals with a total value of $548,250.
During Wednesday's morning session, Jazz Pharmaceuticals shares down by 0.0%, currently priced at $111.21.
Get to Know Jazz Pharmaceuticals Better Jazz Pharmaceuticals is an Ireland-domiciled biopharmaceutical firm focused primarily on treatments for sleeping disorders and oncology. Jazz has nine approved drugs across neuroscience and oncology indications; its portfolio includes Xyrem and Xywav for narcolepsy, Zepzelca for the treatment of metastatic small cell lung cancer, Rylaze for acute lymphoblastic leukemia, and Vyxeos for acute myeloid leukemia. In May 2021, Jazz acquired GW Pharmaceuticals and gained its leading product, Epidiolex for the treatment of severe, rare forms of epilepsy.
Jazz Pharmaceuticals's Financial Performance Revenue Growth: Jazz Pharmaceuticals's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 1.03%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Health Care sector.
Profitability Metrics: Unlocking Value
- Gross Margin: With a high gross margin of 89.41%, the company demonstrates effective cost control and strong profitability relative to its peers.
- Earnings per Share (EPS): Jazz Pharmaceuticals's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of -0.23.
Navigating Market Valuation:
- Price to Earnings (P/E) Ratio: The current P/E ratio of 23.04 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
- Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 2.01, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a lower-than-industry-average EV/EBITDA ratio of 9.41, Jazz Pharmaceuticals presents a potential value opportunity, as investors are paying less for each unit of EBITDA.
Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.
Why Insider Activity Matters in Finance Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.
In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.
Essential Transaction Codes Unveiled 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 Jazz Pharmaceuticals's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.