On September 3, 2024, Director Jody Davids sold 13,600 shares of Premier Inc (PINC, Financial) at a price of $20.48 per share. The transaction, detailed in the SEC Filing, resulted in a total sale amount of approximately $278,528. Following this transaction, the insider now owns 13,932 shares of the company.
Premier Inc, a healthcare improvement company, unites an alliance of approximately 4,400 U.S. hospitals and 225,000 other providers to transform healthcare. With integrated data and analytics, collaboratives, supply chain solutions, and consulting and other services, Premier enables better care and outcomes at a lower cost.
Over the past year, the insider transaction history for Premier Inc shows a trend of more sales than purchases among insiders. There have been 14 insider sells and no insider buys. This recent sale by Director Jody Davids is part of a broader pattern where insiders have been net sellers in the company.
The shares of Premier Inc were trading at $20.48 on the day of the sale, giving the company a market cap of approximately $2.08 billion. The price-earnings ratio of the company stands at 20.74, which is lower than the industry median of 23.76, suggesting a potentially undervalued scenario relative to its peers.
However, with a price of $20.48 and a GuruFocus Value of $30.12, Premier Inc has a price-to-GF-Value ratio of 0.68. This indicates that the stock might be a possible value trap, and investors should think twice before making an investment decision based on the GF Value.
The GF Value is calculated considering historical multiples such as the price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow, along with a GuruFocus adjustment factor based on past returns and growth, and future business performance estimates from Morningstar analysts.
This sale by the insider might reflect personal financial management decisions rather than a commentary on the company's future prospects. Investors should consider all available financial metrics and market conditions when assessing the potential impact of this insider activity on their investment strategies.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
