A significant insider transaction involving the exercise of company stock options was reported on June 11, by John G. Freund MD, Director at Collegium Pharmaceutical COLL, as per the latest SEC filing.
What Happened: In an insider options sale disclosed in a Form 4 filing on Wednesday with the U.S. Securities and Exchange Commission, MD, Director at Collegium Pharmaceutical, exercised stock options for 15,000 shares of COLL. The transaction value amounted to $243,600.
Currently, Collegium Pharmaceutical shares are trading down 0.0%, priced at $29.69 during Thursday’s morning. This values MD’s 15,000 shares at $243,600.
About Collegium Pharmaceutical
Collegium Pharmaceutical Inc is a specialty pharmaceutical company. The company is engaged in developing and planning to commercialize abuse-deterrent products that incorporate its patented DETERx platform technology for the treatment of chronic pain and other diseases. The DETERx platform technology is designed to maintain the extended-release and safety profiles of abused drugs in the face of various methods including chewing, crushing, and dissolving. Its product portfolio includes Jornay, Xtampza ER, which is an abuse-deterrent, extended-release, oral formulation of oxycodone; and Nucynta Products, which are extended-release and immediate-release formulations of tapentadol; Belbuca, and Symproic.
Breaking Down Collegium Pharmaceutical’s Financial Performance
Revenue Growth: Collegium Pharmaceutical’s revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2025, the company achieved a revenue growth rate of approximately 22.66%. 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.
Analyzing Profitability Metrics:
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Gross Margin: The company excels with a remarkable gross margin of 54.75%, indicating superior cost efficiency and profitability compared to its industry peers.
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Earnings per Share (EPS): With an EPS below industry norms, Collegium Pharmaceutical exhibits below-average bottom-line performance with a current EPS of 0.08.
Debt Management: Collegium Pharmaceutical’s debt-to-equity ratio stands notably higher than the industry average, reaching 3.6. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
Exploring Valuation Metrics Landscape:
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Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 24.34 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.
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Price to Sales (P/S) Ratio: The current P/S ratio of 1.71 is above industry norms, reflecting an elevated valuation for Collegium Pharmaceutical’s stock and potential overvaluation based on 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 4.81, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.
Market Capitalization Analysis: Positioned below industry benchmarks, the company’s market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.
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Unmasking the Significance of Insider Transactions
Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.
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.
Navigating the World of Insider Transaction Codes
When analyzing transactions, investors tend to focus on those in the open market, 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 Collegium Pharmaceutical’s Insider Trades.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
