Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Disclosed in a recent SEC filing on February 21, Francis, Director at ShockWave Medical (NASDAQ:SWAV), made a noteworthy transaction involving the exercise of company stock options.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Wednesday showed that Francis, Director at ShockWave Medical, a company in the Health Care sector, just exercised stock options worth 1,000 shares of SWAV stock with an exercise price of $6.59.
Currently, ShockWave Medical shares are trading down 0.2%, priced at $258.65 during Wednesday's morning. This values Francis's 1,000 shares at $252,061.
All You Need to Know About ShockWave Medical ShockWave Medical Inc is a medical device company focused on developing and commercializing products intended to transform the way calcified cardiovascular disease is treated. Its intravascular lithotripsy technology is used in the treatment of calcified plaque. Geographically, the company generates its revenue from the United States, Europe and other countries.
A Deep Dive into ShockWave Medical's Financials Revenue Growth: Over the 3 months period, ShockWave Medical showcased positive performance, achieving a revenue growth rate of 9.12% as of 31 December, 2023. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Health Care sector.
Evaluating Earnings Performance:
- Gross Margin: With a high gross margin of 87.53%, the company demonstrates effective cost control and strong profitability relative to its peers.
- Earnings per Share (EPS): ShockWave Medical's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 1.2.
Valuation Overview:
- Price to Earnings (P/E) Ratio: ShockWave Medical's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 67.37.
- Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 13.57, ShockWave Medical's stock is perceived as being overvalued in the market, particularly in relation to sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 51.61 reflects market recognition of ShockWave Medical's value, positioning it as more highly valued compared to industry peers.
Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.
Illuminating the Importance of Insider Transactions Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.
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.
Important Transaction Codes Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.
Check Out The Full List Of ShockWave Medical'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.