Premier Inc. (NASDAQ:PINC) President and CEO Michael J. Alkire has sold a portion of his company shares, according to a recent filing. The transaction, which took place on September 30, involved Alkire selling 1,264 shares of Class A Common Stock at an average price of $20.01 per share, amounting to a total of over $25,000.
The sale was conducted under a pre-arranged trading plan, known as a Rule 10b5-1 plan, which Alkire had adopted on February 23, 2024. Such plans allow company insiders to sell shares over a predetermined period of time, providing an affirmative defense against accusations of trading on nonpublic information.
Investors may be interested in the price range for Alkire's stock sale. The shares were sold at prices varying from $20.00 to $20.08, with the weighted average coming in at $20.01. Following the sale, Alkire still retains a significant stake in the company, with 558,143 shares of Premier Inc. remaining under his ownership.
The specifics of the transactions, including the exact number of shares sold at each price within the reported range, are available upon request from the issuer, any security holder, or the Securities and Exchange Commission staff.
Premier Inc. specializes in healthcare improvement and has been actively managed by Alkire, who has served as the company's President and CEO. His recent stock sale represents a routine financial transaction and is a common practice among corporate executives.
In other recent news, Premier Inc. announced a strategic expansion of its partnership with Prestige Ameritech, Ltd., a leading U.S. personal protective equipment manufacturer, increasing its total ownership to approximately 24.2 percent. The company also reported exceeding expectations in its fiscal fourth quarter of 2024, with a total net revenue of $350.3 million and adjusted EBITDA of $118.7 million. However, due to concerns over the company's fiscal year 2025 guidance, several analyst firms, including Benchmark, Piper Sandler, Canaccord Genuity, and Baird, have revised their outlook for the company.
Premier is also making strategic moves such as the sale of underperforming subsidiaries and initiating a robust share repurchase program. The company welcomed a new CFO, Glenn Coleman, at the end of 2024 and plans to divest non-core assets. Despite lower profit margins affecting the adjusted EBITDA, Premier maintains a robust cash position, with $125.1 million in cash and equivalents.
Looking ahead, Premier anticipates a low to mid 40s EBITDA margin for supply chain services and mid 20s for performance services in fiscal 2025. These recent developments highlight the company's efforts to navigate through the challenges and complexities of the financial landscape.
InvestingPro Insights
To provide additional context to Premier Inc.'s recent insider transaction, let's examine some key financial metrics and insights from InvestingPro.
As of the latest data, Premier Inc. (NASDAQ:PINC) has a market capitalization of $1.98 billion, with a price-to-earnings (P/E) ratio of 18.74. This P/E ratio, when adjusted for the last twelve months, drops to a more attractive 7.91, suggesting the stock may be undervalued relative to its earnings.
One InvestingPro Tip highlights that Premier's management has been aggressively buying back shares. This practice often signals confidence in the company's future prospects and can potentially increase shareholder value. Additionally, Premier has raised its dividend for 4 consecutive years, demonstrating a commitment to returning value to shareholders. The current dividend yield stands at 4.2%, which may be appealing to income-focused investors.
Despite these positive indicators, it's worth noting that 7 analysts have revised their earnings downwards for the upcoming period, according to another InvestingPro Tip. This could explain why CEO Michael J. Alkire has chosen to sell a portion of his shares, although it's important to remember that insider sales can occur for various personal reasons and don't always reflect the company's outlook.
Premier's financial health appears stable, with the company operating with a moderate level of debt and maintaining profitability over the last twelve months. The stock generally trades with low price volatility, which may be attractive to risk-averse investors.
For those interested in a deeper analysis, InvestingPro offers 9 additional tips for Premier Inc., providing a more comprehensive view of the company's financial situation and market position.
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