Steven Collis, Executive Chairman of Cencora, Inc. (NYSE:COR), recently sold 21,509 shares of the company’s common stock, totaling approximately $5.2 million. The shares were sold at an average price of $242.16 each. This transaction was conducted under a pre-arranged Rule 10b5-1 trading plan.
In a related transaction, Collis also exercised non-qualified stock options to acquire 21,509 shares at a price of $89.58 per share, amounting to a total value of approximately $1.9 million. Following these transactions, Collis holds 306,751.665 shares of Cencora directly.
In other recent news, healthcare solutions provider Cencora reported a strong fiscal 2024 fourth quarter, with a 15% year-over-year increase in adjusted earnings and a 15% rise in consolidated revenue to $79.1 billion. The company also announced the acquisition of Retina Consultants of America (RCA), a move expected to enhance its MSO solutions and contribute approximately $0.35 in its first year. Despite a 9% drop in operating income for the International Healthcare Solutions segment, Cencora projects an adjusted diluted EPS between $14.80 and $15.10 and a revenue growth of 7% to 9% for fiscal 2025.
The company's strategic focus on specialty pharmaceuticals and infrastructure investments were highlighted, with the US Healthcare Solutions segment witnessing a 16% revenue increase, driven by a 55% surge in GLP-1 product sales. The acquisition of RCA aligns with Cencora's strategic focus and is expected to boost its growth. These are among the recent developments for Cencora, as it anticipates continued growth driven by solid performance in specialty distribution and the benefits from the RCA acquisition.
InvestingPro Insights
While Steven Collis's recent stock sale might raise eyebrows, it's essential to view this transaction in the broader context of Cencora's financial health and market position. According to InvestingPro data, Cencora boasts a substantial market capitalization of $48.1 billion, reflecting its significant presence in the Healthcare Providers & Services industry.
One InvestingPro Tip highlights that Cencora has maintained dividend payments for 24 consecutive years, demonstrating a commitment to shareholder returns. This is further supported by the company's current dividend yield of 0.9% and a notable dividend growth of 13.4% over the last twelve months. Such consistent dividend performance could be attractive to income-focused investors, despite the recent insider sale.
Another relevant InvestingPro Tip indicates that Cencora operates with a moderate level of debt. This financial prudence is crucial in the current economic environment and may provide the company with flexibility for future growth initiatives or to weather potential market downturns.
It's worth noting that Cencora's stock is trading near its 52-week high, with a price that is 97.63% of its peak. This strong performance is reflected in the company's impressive year-to-date total return of 19.47%. However, investors should be aware that the stock is trading at a high P/E ratio of 32.26, which may suggest a premium valuation.
For those interested in a deeper analysis, InvestingPro offers 17 additional tips on Cencora, providing a more comprehensive view of the company's financial health and market position.
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