Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Revealing a significant insider sell on June 5, Molly Harper, Board Member at Catalyst Pharmaceuticals (NASDAQ:CPRX), as per the latest SEC filing.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Wednesday showed that Harper sold 5,333 shares of Catalyst Pharmaceuticals. The total transaction amounted to $86,949.
Catalyst Pharmaceuticals shares are trading down 1.66% at $16.04 at the time of this writing on Thursday morning.
About Catalyst Pharmaceuticals Catalyst Pharmaceuticals Inc is a biopharmaceutical company. It focuses on developing and commercializing, developing therapies for people with rare, debilitating, chronic neuromuscular and neurological diseases. It offers Firdapse, a proprietary form of amifampridine phosphate for the treatment of patients with Lambert-Eaton myasthenic syndrome.
Catalyst Pharmaceuticals: Financial Performance Dissected Revenue Growth: Catalyst Pharmaceuticals displayed positive results in 3 months. As of 31 March, 2024, the company achieved a solid revenue growth rate of approximately 15.4%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Health Care sector.
Profitability Metrics:
- Gross Margin: Achieving a high gross margin of 87.29%, the company performs well in terms of cost management and profitability within its sector.
- Earnings per Share (EPS): Catalyst Pharmaceuticals's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 0.2.
Valuation Metrics:
- Price to Earnings (P/E) Ratio: The current P/E ratio of 29.12 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
- Price to Sales (P/S) Ratio: The current P/S ratio of 4.6 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Catalyst Pharmaceuticals's EV/EBITDA ratio at 14.2 suggests potential undervaluation, falling below industry averages.
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The Importance of Insider Transactions Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.
In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.
Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.
Deciphering Transaction Codes in Insider Filings 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 Catalyst Pharmaceuticals's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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