Sang Yi, Group President at Zimmer Biomet Holdings (NYSE:ZBH), disclosed an insider sell on September 15, according to a recent SEC filing.
What Happened: Yi's decision to sell 1,200 shares of Zimmer Biomet Holdings was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total value of the sale is $124,301.
The latest market snapshot at Tuesday morning reveals Zimmer Biomet Holdings shares down by 0.7%, trading at $100.25.
Get to Know Zimmer Biomet Holdings Better
Zimmer Biomet designs, manufactures, and markets orthopedic reconstructive implants as well as supplies and surgical equipment for orthopedic surgery. With the acquisitions of Centerpulse in 2003 and Biomet in 2015, Zimmer holds the leading share of the reconstructive market in the United States, Europe, and Japan. Roughly two-thirds of total revenue is derived from sales of large joints; another fourth comes from extremities, trauma, sports medicine, and related surgical products. The firm spun out its dental and spine businesses in 2022.
Financial Milestones: Zimmer Biomet Holdings's Journey
Revenue Growth: Zimmer Biomet Holdings's remarkable performance in 3 months is evident. As of 30 June, 2025, the company achieved an impressive revenue growth rate of 6.97%. This signifies a substantial 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.
Interpreting Earnings Metrics:
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Gross Margin: The company maintains a high gross margin of 71.49%, indicating strong cost management and profitability compared to its peers.
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Earnings per Share (EPS): Zimmer Biomet Holdings's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.77.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.6.
Exploring Valuation Metrics Landscape:
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Price to Earnings (P/E) Ratio: The current P/E ratio of 24.62 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
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Price to Sales (P/S) Ratio: With a P/S ratio of 2.58 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry benchmarks at 11.87, Zimmer Biomet Holdings presents an attractive value opportunity.
Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.
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Delving Into the Significance of Insider Transactions
While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.
Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.
Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.
But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Exploring Key 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 Zimmer Biomet Holdings's Insider Trades.
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