Insider Decision: Frederic H Moll Offloads $15.44M Worth Of ShockWave Medical Stock

Frederic H Moll, Board Member at ShockWave Medical SWAV, executed a substantial insider sell on February 23, according to an SEC filing.

What Happened: Moll's recent move involves selling 60,000 shares of ShockWave Medical. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Friday. The total value is $15,443,412.

Tracking the Friday's morning session, ShockWave Medical shares are trading at $270.53, showing a down of 0.0%.

All You Need to Know About ShockWave Medical

ShockWave Medical Inc is a medical device company focused on developing and commercializing products intended to transform the way calcified cardiovascular disease is treated. Its intravascular lithotripsy technology is used in the treatment of calcified plaque. Geographically, the company generates its revenue from the United States, Europe and other countries.

Financial Milestones: ShockWave Medical's Journey

Revenue Growth: Over the 3 months period, ShockWave Medical showcased positive performance, achieving a revenue growth rate of 9.12% as of 31 December, 2023. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Health Care sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Navigating Financial Profits:

• Gross Margin: The company sets a benchmark with a high gross margin of 87.53%, reflecting superior cost management and profitability compared to its peers.

• Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 1.2, ShockWave Medical showcases strong earnings per share.

Debt Management: ShockWave Medical's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.15, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

In-Depth Valuation Examination:

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 70.27 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 14.15 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio of 53.88, the company's market valuation exceeds industry averages.

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Delving Into the Significance of Insider Transactions

Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Deciphering Transaction Codes in Insider Filings

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of ShockWave Medical's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.