Premier, Inc. (NASDAQ:PINC) Chief Operating Officer Leigh Anderson has sold shares of the company's stock, according to a recent disclosure with the Securities and Exchange Commission (SEC). The transaction involved the sale of 20,000 shares of Class A Common Stock at a weighted average price of $19.62 per share, totaling approximately $392,400.
The sale took place on October 1, 2024, and was carried out under a pre-arranged Rule 10b5-1 trading plan, which Anderson had adopted on February 21, 2024. Rule 10b5-1 plans allow company insiders to set up a predetermined schedule for buying or selling shares at a time when they are not in possession of material non-public information, providing a defense against claims of insider trading.
The price range for the shares sold varied from $19.29 to $19.99, with the reported price representing the weighted average of these transactions. Following the sale, Anderson still owns 131,707 shares of Premier, Inc., maintaining a significant stake in the company.
Investors and the public can request more detailed information about the exact number of shares sold at each price point within the stated range from Anderson, as noted in the SEC filing footnote.
Premier, Inc., headquartered in Charlotte, North Carolina, specializes in management services and operates within the healthcare industry, providing a variety of products and services to hospitals and healthcare providers.
The SEC filing, signed by David L. Klatsky as attorney-in-fact, was dated October 3, 2024, confirming the completion and reporting of the transaction.
In other recent news, Premier Inc. has been under the microscope of several analyst firms due to its financial outlook for 2025. The company reported strong fiscal fourth-quarter results for 2024, with total net revenue of $350.3 million and adjusted EBITDA of $118.7 million. However, Canaccord Genuity, Benchmark, Piper Sandler, and Baird all adjusted their price targets for Premier, citing concerns over the company's financial outlook for 2025.
Premier Inc. has also announced a strategic expansion of its partnership with Prestige Ameritech, a leading U.S. personal protective equipment manufacturer. This deal involved Premier divesting its holdings in S2S Global, its direct sourcing subsidiary, in exchange for a 20 percent minority stake in Prestige.
Additionally, Premier has initiated strategic actions such as the sale of underperforming subsidiaries and a robust share repurchase program. The company also announced the appointment of a new CFO, Glenn Coleman, at the end of 2024, and plans to divest non-core assets. Despite challenges, Premier maintains a robust cash position, with $125.1 million in cash and equivalents. These are recent developments that investors should consider when evaluating Premier Inc.
InvestingPro Insights
Adding context to the recent insider sale by Premier, Inc.'s COO, InvestingPro data reveals that the company's stock is currently trading near its 52-week low, with a market capitalization of $1.93 billion. This positioning may provide some perspective on the timing of Anderson's stock sale.
Despite the recent insider transaction, Premier maintains a solid financial foundation. According to InvestingPro Tips, the company has been profitable over the last twelve months and operates with a moderate level of debt. This financial stability is further underscored by Premier's dividend history, having raised its dividend for 4 consecutive years, which could be attractive to income-focused investors.
The company's valuation metrics present an interesting picture. With a P/E ratio (adjusted) of 7.72 for the last twelve months as of Q4 2024, Premier appears to be trading at a relatively low multiple compared to its historical average. An InvestingPro Tip suggests that the current valuation implies a strong free cash flow yield, which could indicate potential value for investors.
It's worth noting that while the company has shown profitability, there are some challenges on the horizon. Another InvestingPro Tip indicates that analysts anticipate a sales decline in the current year, which investors may want to monitor closely. This forecast, along with the fact that 7 analysts have revised their earnings downwards for the upcoming period, may provide additional context for Anderson's decision to sell shares.
For those interested in a deeper dive into Premier's financial health and market position, InvestingPro offers 10 additional tips and a comprehensive set of financial metrics. This additional information could be valuable for investors looking to make informed decisions in light of recent insider activity and market conditions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.