A substantial acquisition of company stock options by Keith Pfeil, President at Globus Medical (NYSE:GMED) was reported on August 27, based on a new SEC filing.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Wednesday showed that Pfeil, President at Globus Medical, a company in the Health Care sector, acquired stock options for 40,000 shares of GMED. The options allow Pfeil to buy the company's stock at $56.34 per share.
During Thursday's morning session, Globus Medical shares down by 0.02%, currently priced at $61.5. Considering the current price, Pfeil's 40,000 shares have a total value of $206,399.
Get to Know Globus Medical Better
Globus Medical Inc is a medical device company that develops and provides healthcare products and solutions to hospitals, physicians, and surgical centers. The firm's products are organized into two categories: musculoskeletal solutions, which include medical devices and instruments used mostly for spinal and orthopedic procedures, and enabling technologies, which include computer systems developed for enhancing surgical capabilities. The vast majority of the company's revenue is generated from musculoskeletal solutions products, and more than half of the revenue is earned in the United States. It also has its presence internationally.
Globus Medical: A Financial Overview
Revenue Growth: Globus Medical displayed positive results in 3 months. As of 30 June, 2025, the company achieved a solid revenue growth rate of approximately 18.37%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Health Care sector.
Key Profitability Indicators:
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Gross Margin: The company maintains a high gross margin of 66.62%, indicating strong cost management and profitability compared to its peers.
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Earnings per Share (EPS): Globus Medical's EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 1.5.
Debt Management: Globus Medical's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.03.
Valuation Overview:
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Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 23.84 is lower than the industry average, indicating potential undervaluation for the stock.
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Price to Sales (P/S) Ratio: The current P/S ratio of 3.24 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a below-average EV/EBITDA ratio of 13.22, Globus Medical presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.
Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.
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Why Insider Activity Matters in Finance
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 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.
Navigating the World of Insider Transaction Codes
Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Globus Medical's Insider Trades.
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