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In a recent transaction, Kathleen A. Gilmartin, a board director at U.S. Physical Therapy Inc. (NYSE:USPH), invested $172,180 in the company's stock. The purchase, which took place on September 3, involved 2,000 shares at a weighted average price of $86.09 each. The shares were acquired in multiple transactions with prices ranging from $85.93 to $86.17, inclusive.
This latest acquisition by Gilmartin increases her total holdings to 18,904 shares of U.S. Physical Therapy Inc., a leading national provider of outpatient physical therapy services. The transaction reflects a notable vote of confidence in the company's future prospects from a key member of its board of directors.
Investors may find it interesting that the 2,000 shares bought by Gilmartin include 1,068 shares that were granted as restricted stock under the company's Amended and Restated 2003 Stock Incentive Plan. The restrictions on these shares are set to lapse in three separate tranches on the first day of October 2024, January 2025, and April 2025, provided that Gilmartin remains a member of the board on those dates.
The purchase by Gilmartin is a direct ownership transaction, which is typically seen as a strong indication of an insider's belief in the company's value and potential for growth. As of the last trade, U.S. Physical Therapy Inc.'s stock was trading on the NYSE, and this recent insider activity may be of interest to current and potential shareholders alike.
In other recent news, U.S. Physical Therapy, Inc. has been making significant strides in its growth strategy. The company recently reported a record-breaking second quarter in 2024, with the highest number of clinic visits per day in its history. Despite facing challenges such as rising labor costs and potential Medicare reimbursement rate reductions, U.S. Physical Therapy achieved substantial growth, with the adjusted EBITDA for Q2 2024 reaching $22.1 million and an 8.5% increase in physical therapy revenues compared to the same period last year.
The company also announced the acquisition of a physical therapy practice in Pennsylvania, taking a 70% stake in the practice, which generates an estimated $5.5 million in annual revenues. This acquisition is part of the company's ongoing growth strategy and is expected to contribute to its revenue stream and enhance its market presence in the region.
Analysts project a full-year 2024 EBITDA between $80 million to $85 million for U.S. Physical Therapy. The company is actively negotiating higher rates with commercial payers to counter potential Medicare reimbursement rate cuts and is investing in recruitment and school partnerships to address labor shortages. These recent developments underscore the company's strategic focus on growth and efficiency.
InvestingPro Insights
The recent insider purchase by Kathleen A. Gilmartin, a board director at U.S. Physical Therapy Inc. (NYSE:USPH), is a significant indicator of confidence in the company's potential. To provide further context to this transaction, let's consider some key financial metrics and InvestingPro Tips that can help investors gain a deeper understanding of USPH's current financial health and future prospects.
InvestingPro Data shows that U.S. Physical Therapy Inc. has a market capitalization of $1.3 billion and is currently trading at a high earnings multiple, with a P/E ratio of 81.21. However, when adjusted for the last twelve months as of Q2 2024, the P/E ratio appears more favorable at 53.53. The company's revenue growth has been positive, with an 8.04% increase over the last twelve months as of Q2 2024, and a quarterly growth rate of 10.37%. This suggests that the company is expanding its revenue streams, which could be a positive sign for investors.
One InvestingPro Tip to consider is that U.S. Physical Therapy has raised its dividend for 3 consecutive years and has maintained dividend payments for 14 consecutive years, which may attract investors looking for steady income. The dividend yield as of the latest data stands at 2.05%, with a dividend growth of 2.33%. Moreover, the company's cash flows have been robust enough to cover interest payments, which is reassuring for debt sustainability.
It's also worth noting that while some analysts have revised their earnings estimates downwards for the upcoming period, the company is expected to remain profitable this year, based on analyst predictions. U.S. Physical Therapy operates with a moderate level of debt and has been profitable over the last twelve months, which can be seen as a sign of financial stability.
For investors seeking more in-depth analysis and additional insights, there are more InvestingPro Tips available at https://www.investing.com/pro/USPH. These tips can provide a clearer picture of the company's financial standing and help inform investment decisions.
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