In a recent SEC filing, it was revealed that Seamus Mulligan, Board Member at Jazz Pharmaceuticals JAZZ, made a noteworthy insider purchase on May 13,.
What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday unveiled that Mulligan made a notable purchase of 101,621 shares of Jazz Pharmaceuticals, valuing at $9,993,081.
The latest market snapshot at Wednesday morning reveals Jazz Pharmaceuticals shares up by 0.98%, trading at $103.92.
Unveiling the Story Behind Jazz Pharmaceuticals
Jazz Pharmaceuticals is an Ireland-domiciled biopharmaceutical firm focused primarily on treatments for sleeping disorders and oncology. Jazz has nine approved drugs across neuroscience and oncology indications; its portfolio includes Xyrem and Xywav for narcolepsy, Zepzelca for the treatment of metastatic small cell lung cancer, Rylaze for acute lymphoblastic leukemia, and Vyxeos for acute myeloid leukemia. In May 2021, Jazz acquired GW Pharmaceuticals and gained its leading product, Epidiolex for the treatment of severe, rare forms of epilepsy.
Key Indicators: Jazz Pharmaceuticals’s Financial Health
Revenue Growth: Jazz Pharmaceuticals’s revenue growth over a period of 3 months has faced challenges. As of 31 March, 2025, the company experienced a revenue decline of approximately -0.46%. This indicates a decrease in the company’s top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Health Care sector.
Exploring Profitability:
-
Gross Margin: With a high gross margin of 88.35%, the company demonstrates effective cost control and strong profitability relative to its peers.
-
Earnings per Share (EPS): Jazz Pharmaceuticals’s EPS is below the industry average. The company faced challenges with a current EPS of -1.52. This suggests a potential decline in earnings.
Debt Management: Jazz Pharmaceuticals’s debt-to-equity ratio stands notably higher than the industry average, reaching 1.3. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
Financial Valuation Breakdown:
-
Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 13.98 is lower than the industry average, indicating potential undervaluation for the stock.
-
Price to Sales (P/S) Ratio: The P/S ratio of 1.66 is lower than the industry average, implying a discounted valuation for Jazz Pharmaceuticals’s stock in relation to sales performance.
-
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company’s EV/EBITDA ratio of 7.36 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.
Market Capitalization Analysis: Below industry benchmarks, the company’s market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.
Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.
Why Insider Transactions Are Key in Investment Decisions
Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.
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.
A Deep Dive into 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 Jazz Pharmaceuticals’s Insider Trades.
Insider Buying Alert: Profit from C-Suite Moves
Benzinga Edge reveals every insider trade in real-time. Don’t miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.
This article was generated by Benzinga’s automated content engine and reviewed by an editor.
