On September 12, 2023, Michael Mahoney, Chairman, President & CEO of Boston Scientific Corp (BSX, Financial), sold 113,355 shares of the company. This move is part of a series of insider transactions that have taken place over the past year, with the insider selling a total of 239,182 shares and making no purchases.
Boston Scientific Corp is a leading innovator of medical solutions that improve the health of patients around the world. The company's products and technologies are used to diagnose or treat a wide range of medical conditions, including heart, digestive, pulmonary, vascular, urological, women's health, and chronic pain conditions.
The insider's recent sell has raised questions about the company's stock performance and its relationship with insider transactions. Over the past year, there have been 35 insider sells and no insider buys. This trend is illustrated in the following image:
On the day of the insider's recent sell, shares of Boston Scientific Corp were trading at $53.91, giving the company a market cap of $77.74 billion. The price-earnings ratio was 88.49, significantly higher than the industry median of 27.46 and the company's historical median price-earnings ratio.
The GF Value, an intrinsic value estimate developed by GuruFocus, is calculated based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance. With a price of $53.91 and a GuruFocus Value of $50.41, Boston Scientific Corp has a price-to-GF-Value ratio of 1.07, indicating that the stock is fairly valued. The GF Value is illustrated in the following image:
The insider's recent sell, along with the absence of insider buys over the past year, may raise concerns among investors. However, the stock's fair valuation suggests that the company's fundamentals remain strong. Investors should keep a close eye on future insider transactions and other indicators to make informed decisions.
As the Chairman, President & CEO of Boston Scientific Corp, Michael Mahoney's transactions carry significant weight. His decisions reflect not only his personal investment strategy but also his confidence in the company's future performance. Therefore, investors should consider the insider's recent sell as part of a broader analysis of Boston Scientific Corp's financial health and prospects.
