In a recent transaction on August 20, 2024, Kimberley E. Honeysett, the Senior Vice President and Chief Legal Officer (SVP and CLO) of Varex Imaging Corp (NASDAQ:VREX), sold shares of the company's stock. The transaction involved the sale of 2,578 shares at a price of $12.53 per share, resulting in a total value of $32,302.
The sale was conducted under a 10b5-1 trading plan, which was adopted by Honeysett on May 21, 2024. A 10b5-1 trading plan allows company insiders to set up a predetermined plan to sell company stocks, thereby avoiding accusations of insider trading. It is worth noting that the shares were sold at a uniform price of $12.53, as mentioned in the footnote of the SEC Form 4 filing.
Following the sale, Honeysett's direct holdings in Varex Imaging Corp have decreased, leaving her with a total of 275 shares owned directly. In addition, it was disclosed that Honeysett has an indirect ownership of 195 shares held by a trust.
Varex Imaging Corp, headquartered in Salt Lake City, Utah, specializes in the production of electronic components and operates within the manufacturing sector. The company's shares are publicly traded on the NASDAQ stock exchange under the ticker symbol VREX.
Investors and followers of Varex Imaging Corp often monitor the buying and selling activities of company insiders as it can provide insights into the company's financial health and management's perspective on the stock's value.
In other recent news, Varex Imaging Corporation reported a mix of results for the third quarter of fiscal year 2024. The company experienced a 10% decline in revenue year-over-year, with a notable 15% decrease in the Medical segment. In contrast, the Industrial segment saw a 6% increase in revenue. Despite these challenges, Varex maintained a strong cash position of $192 million.
The company's quarterly report also highlighted challenges in the Chinese market and increased competition from Asia-based manufacturers. Analysts from Varex anticipate a gradual improvement in fiscal year 2025, with expectations of a strong performance in the industrial sector. They also anticipate challenges due to soft demand in China, customer inventory adjustments, and competition.
In addition to these developments, Varex is considering a potential debt refinancing before June 2025. The company's strategy includes cost-cutting measures, product innovation, and market expansion, aiming to strengthen its position in the imaging industry. These are the recent developments for Varex Imaging Corporation.
InvestingPro Insights
In light of the recent insider transaction at Varex Imaging Corp (NASDAQ:VREX), investors may be seeking a deeper understanding of the company's financial standing. According to InvestingPro data, Varex Imaging Corp has a market capitalization of $502.18 million, with a P/E ratio standing at 14.61. This valuation metric suggests that investors are currently paying $14.61 for every dollar of the company's earnings, which can be a useful indicator of the stock's relative expense.
The company's P/E ratio adjusted for the last twelve months as of Q3 2024 is 11.5, and it is trading with a PEG ratio of 1.41 for the same period. This PEG ratio, which measures the P/E ratio in relation to the growth rate of the company's earnings, indicates that the stock may be valued appropriately relative to its expected earnings growth. Furthermore, Varex Imaging's price to book ratio for the last twelve months as of Q3 2024 stands at 0.87, suggesting that the stock may be undervalued compared to the company's net assets.
An InvestingPro Tip highlights that Varex Imaging Corp's valuation implies a strong free cash flow yield, which can be an attractive quality for investors seeking companies that generate sufficient cash to support operations and provide returns to shareholders. Additionally, there is a tip indicating that while analysts predict the company will be profitable this year, they have also revised their earnings downwards for the upcoming period.
For investors considering the recent insider sale, these metrics and insights can provide a broader context. It's also worth noting that there are additional InvestingPro Tips available for Varex Imaging Corp, which can offer further analysis for those interested in the company's financial details and future prospects.
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