Michael F. Mahoney, the Chairman, President, and CEO of Boston Scientific Corp (NYSE:BSX), recently sold a significant portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Mahoney sold 162,778 shares of Boston Scientific stock on November 5th. The shares were sold at prices ranging from $84.7395 to $85.1727 per share, totaling approximately $13.8 million.
In addition to the stock sales, Mahoney also exercised options to acquire 111,887 shares at prices between $16.31 and $17.26 per share, amounting to approximately $1.88 million. These transactions were conducted under a pre-established Rule 10b5-1 trading plan, which allows insiders to set up a predetermined schedule for selling shares to avoid potential insider trading violations.
Following these transactions, Mahoney holds 1,521,205 shares directly and has an additional 209,278 shares indirectly held by a trust.
"In other recent news, Boston Scientific Corporation (NYSE:BSX) has resumed its AVANT GUARD clinical trial and announced plans to acquire Cortex, a private firm with a unique cardiac mapping system, OptiMap. These developments are part of Boston Scientific's strategic growth in the cardiology market. TD Cowen, maintaining a Buy rating on Boston Scientific, perceives the Cortex acquisition as a positive move, potentially bolstering the company's electrophysiology portfolio.
Boston Scientific has reported robust growth rates in its cardiology business, with a 27% increase in the U.S. and 18% internationally, driven by strong performances in the ICTx and EP business sectors, and the WATCHMAN franchise. The company has received recent product approvals, including the FARAVIEW mapping software and FARAWAVE NAV catheter. Despite the ACURATE IDE trial not meeting its primary endpoint, Boston Scientific continues to engage in FDA discussions for future market expansion.
The company is investing in mitral and tricuspid therapies, aiming to double the global drug-coated balloon business by 2025. These recent developments underscore Boston Scientific's commitment to innovation and growth in the cardiology market, projected to grow at an 8% CAGR through 2027."
InvestingPro Insights
Boston Scientific Corp (NYSE:BSX) has been performing exceptionally well in the market, as evidenced by the recent insider transaction and the company's financial metrics. According to InvestingPro data, BSX's stock has seen a remarkable 65.69% price total return over the past year, and it's currently trading near its 52-week high at 98.15% of that peak.
The company's strong market position is further underscored by its robust revenue growth. InvestingPro data shows that BSX's revenue grew by 15.66% over the last twelve months, reaching $15.91 billion. This growth trend is continuing, with quarterly revenue growth of 19.34% in Q3 2024.
InvestingPro Tips highlight that Boston Scientific is a prominent player in the Healthcare Equipment & Supplies industry, and analysts expect the company's net income to grow this year. This positive outlook is supported by the fact that 20 analysts have revised their earnings upwards for the upcoming period.
While the stock is trading at a high P/E ratio of 71.35, which might seem expensive, it's important to note that BSX has demonstrated high returns over various time frames. The company has shown strong performance over the last three months, five years, and even the last decade, according to InvestingPro Tips.
It's worth noting that Boston Scientific operates with a moderate level of debt, and its cash flows can sufficiently cover interest payments. This financial stability, combined with the company's market performance, may explain why insiders like CEO Michael F. Mahoney are making strategic moves with their stock holdings.
For investors seeking more comprehensive insights, InvestingPro offers 18 additional tips for Boston Scientific, providing a deeper understanding of the company's financial health and market position.
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