Insider Decision: Walgreens Boots Alliance Inc Offloads $991.64M Worth Of Cencora Stock

Walgreens Boots Alliance Inc, 10% Owner at Cencora COR, executed a substantial insider sell on February 9, according to an SEC filing.

What Happened: Inc's decision to sell 4,212,395 shares of Cencora was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Friday. The total value of the sale is $991,639,906.

During Friday's morning session, Cencora shares down by 0.0%, currently priced at $230.32.

Delving into Cencora's Background

Cencora is one of three domestic leading pharmaceutical wholesalers. It sources and distributes branded, generic, and specialty pharmaceutical products to pharmacies (retail chains, independent, and mail order), hospital networks, and healthcare providers. It and McKesson and Cardinal Health constitute over 90% of the U.S. pharmaceutical wholesale industry. Cencora also provides commercialization services for manufacturers of pharmaceuticals and medical devices, global specialty drug logistics (World Courier), and animal health product distribution (MWI Animal Health). Cencora expanded its international presence in 2021 by purchasing Alliance Healthcare, one of the leading drug wholesalers in Europe.

Cencora's Economic Impact: An Analysis

Revenue Growth: Cencora's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2023, the company achieved a revenue growth rate of approximately 14.97%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Health Care sector.

Holistic Profitability Examination:

  • Gross Margin: With a low gross margin of 3.42%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

  • Earnings per Share (EPS): Cencora's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 3.01.

Debt Management: Cencora's debt-to-equity ratio surpasses industry norms, standing at 5.24. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Market Valuation:

  • Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 25.09 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

  • Price to Sales (P/S) Ratio: With a P/S ratio of 0.17 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.

  • EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 12.9 reflects market recognition of Cencora's value, positioning it as more highly valued compared to industry peers.

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

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The Relevance of Insider Transactions

Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Understanding Crucial Transaction Codes

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates 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 Cencora's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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