Disclosed in the latest SEC filing, a significant insider purchase on December 15, involves Robert M VanHimbergen, EVP and CFO at Elanco Animal Health (NYSE:ELAN).
What Happened: VanHimbergen demonstrated confidence in Elanco Animal Health by purchasing 6,950 shares, as reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total value of the transaction is $150,426.
During Tuesday's morning session, Elanco Animal Health shares up by 4.75%, currently priced at $22.73.
Get to Know Elanco Animal Health Better
Elanco Animal Health is an animal health company that is engaged in developing, manufacturing, and marketing pharma products for companion and food animals. It spun off from Eli Lilly in 2018 and acquired Janssen Animal Health in 2011, Novartis Animal Health in 2014, Boehringer Ingelheim Vetmedica in 2017, and Bayer Animal Health in 2020. The company's operations are conducted globally, and it sells its products in over 90 countries. It offers a range of food animal products used in cattle, sheep, goats, and swine production.
Financial Milestones: Elanco Animal Health's Journey
Revenue Growth: Elanco Animal Health's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2025, the company achieved a revenue growth rate of approximately 10.39%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Health Care sector, the company excelled with a growth rate higher than the average among peers.
Exploring Profitability:
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Gross Margin: The company shows a low gross margin of 53.39%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.
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Earnings per Share (EPS): Elanco Animal Health's EPS is below the industry average. The company faced challenges with a current EPS of -0.07. This suggests a potential decline in earnings.
Debt Management: Elanco Animal Health's debt-to-equity ratio is below the industry average. With a ratio of 0.6, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
Assessing Valuation Metrics:
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Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 310.0, Elanco Animal Health's stock is perceived as being overvalued in the market.
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Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 2.37, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Indicated by a lower-than-industry-average EV/EBITDA ratio of 17.02, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.
Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.
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Understanding the Significance 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.
From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.
While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.
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 Elanco Animal Health's Insider Trades.
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