Smart Money Move: Jeffrey N Simmons Grabs $478K Worth Of Elanco Animal Health Stock

In a recent SEC filing, it was revealed that Jeffrey N Simmons, President at Elanco Animal Health (NYSE:ELAN), made a noteworthy insider purchase on December 15,.

What Happened: Simmons made a significant move by purchasing 22,000 shares of Elanco Animal Health as reported in a Form 4 filing with the U.S. Securities and Exchange Commission. The transaction's total worth stands at $478,495.

During Tuesday's morning session, Elanco Animal Health shares up by 4.75%, currently priced at $22.73.

Unveiling the Story Behind Elanco Animal Health

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.

Elanco Animal Health's Financial Performance

Positive Revenue Trend: Examining Elanco Animal Health's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 10.39% as of 30 September, 2025, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Health Care sector.

Holistic Profitability Examination:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 53.39%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): Elanco Animal Health's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of -0.07.

Debt Management: Elanco Animal Health's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.6.

Financial Valuation Breakdown:

• 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.

• 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.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a lower-than-industry-average EV/EBITDA ratio of 17.02, Elanco Animal Health presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

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Why Insider Transactions Are Key in Investment Decisions

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to 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.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

Deciphering Transaction Codes in Insider Filings

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely 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 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 Elanco Animal Health's Insider Trades.

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