Insider Selling: FRED LAMPROPOULOS Unloads $3.56M Of Merit Medical Systems Stock

Disclosed on March 6, FRED LAMPROPOULOS, President and CEO at Merit Medical Systems MMSI, executed a substantial insider sell as per the latest SEC filing.

What Happened: LAMPROPOULOS’s decision to sell 34,319 shares of Merit Medical Systems was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value of the sale is $3,564,069.

In the Friday’s morning session, Merit Medical Systems‘s shares are currently trading at $101.45, experiencing a down of 0.28%.

About Merit Medical Systems

Merit Medical Systems Inc is a medical equipment company that develops and manufactures products for interventional cardiology, radiology, and endoscopy procedures. The firm reports two segments which are Cardiovascular and Endoscopy. The majority of the revenue is earned from the Cardiovascular segment which consists of cardiology and radiology medical device products that assist in diagnosing and treating coronary artery disease, peripheral vascular disease, and other non-vascular diseases and includes embolotherapeutic, cardiac rhythm management, electrophysiology, critical care, and interventional oncology and spine devices.

Merit Medical Systems: A Financial Overview

Revenue Growth: Merit Medical Systems displayed positive results in 3 months. As of 31 December, 2024, the company achieved a solid revenue growth rate of approximately 9.44%. 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.

Evaluating Earnings Performance:

• Gross Margin: The company shows a low gross margin of 48.71%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): With an EPS below industry norms, Merit Medical Systems exhibits below-average bottom-line performance with a current EPS of 0.48.

Debt Management: Merit Medical Systems’s debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.58.

Assessing Valuation Metrics:

• Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 50.11, Merit Medical Systems’s stock is perceived as being overvalued in the market.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 4.45 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio of 21.64, the company’s market valuation exceeds industry averages.

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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Exploring the Significance of Insider Trading

While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.

When discussing legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Transaction Codes Worth Your Attention

For investors, a primary focus lies on transactions occurring in the open market, as indicated 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 Merit Medical Systems’s Insider Trades.

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