Positive Signal: Pascal Soriot Shows Faith, Buying $182K In Agilent Technologies Stock

Pascal Soriot, Director at Agilent Technologies A, reported an insider buy on May 23, according to a new SEC filing.

What Happened: Soriot made a significant move by purchasing 1,677 shares of Agilent Technologies as reported in a Form 4 filing with the U.S. Securities and Exchange Commission. The transaction's total worth stands at $182,642.

As of Friday morning, Agilent Technologies shares are down by 2.01%, currently priced at $107.48.

Get to Know Agilent Technologies Better

Originally spun out of Hewlett-Packard in 1999, Agilent has evolved into a leading life science and diagnostic firm. Today, Agilent's measurement technologies serve a broad base of customers with its three operating segments: life science and applied tools, cross lab consisting of consumables and services related to life science and applied tools, and diagnostics and genomics. Over half of its sales are generated from the biopharmaceutical, chemical, and advanced materials end markets, which we view as the stickiest end markets, but it also supports clinical lab, environmental, forensics, food, academic, and government-related organizations. The company is geographically diverse, with operations in the US and China representing the largest country concentrations.

Breaking Down Agilent Technologies's Financial Performance

Revenue Growth: Over the 3 months period, Agilent Technologies showcased positive performance, achieving a revenue growth rate of 1.39% as of 31 January, 2025. This reflects 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.

Key Insights into Profitability Metrics:

• Gross Margin: The company maintains a high gross margin of 53.48%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): Agilent Technologies's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 1.12.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.56.

Exploring Valuation Metrics Landscape:

• Price to Earnings (P/E) Ratio: The P/E ratio of 25.16 is lower than the industry average, implying a discounted valuation for Agilent Technologies's stock.

• Price to Sales (P/S) Ratio: The current P/S ratio of 4.86 is above industry norms, reflecting an elevated valuation for Agilent Technologies's stock and potential overvaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry averages at 17.89, Agilent Technologies could be considered undervalued.

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

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The Relevance 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.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Cracking Transaction Codes

For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies 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 Agilent Technologies's Insider Trades.

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