A notable insider purchase on April 29, was reported by Jonathan Peacock, Director at Avantor AVTR, based on the most recent SEC filing.
What Happened: In a significant move reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday, Peacock purchased 8,091 shares of Avantor, demonstrating confidence in the company’s growth potential. The total value of the transaction stands at $103,645.
At Wednesday morning, Avantor shares are down by 0.39%, trading at $12.64.
About Avantor
Avantor Inc provider of products and services to customers in the biopharma, healthcare, education & government, and advanced technologies & applied materials industries. The company has three geographic segments: the Americas, Europe, and AMEA. The company’s product group consists of Equipment & instrumentation, Services & specialty procurement, Proprietary materials & consumables, and Third-party materials & consumables. Materials & consumables include high-purity chemicals and reagents, lab products and supplies, specialized formulated silicone materials, customized excipients, customized single-use assemblies, process chromatography resins and columns, analytical sample prep kits, and education and microbiology and clinical trial kits, peristaltic pumps and fluid handling tips.
Breaking Down Avantor’s Financial Performance
Negative Revenue Trend: Examining Avantor’s financials over 3 months reveals challenges. As of 31 March, 2025, the company experienced a decline of approximately -5.86% in revenue growth, reflecting a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Health Care sector.
Profitability Metrics: Unlocking Value
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Gross Margin: The company shows a low gross margin of 33.82%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.
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Earnings per Share (EPS): Avantor’s EPS is below the industry average. The company faced challenges with a current EPS of 0.09. This suggests a potential decline in earnings.
Debt Management: Avantor’s debt-to-equity ratio is below the industry average at 0.67, reflecting a lower dependency on debt financing and a more conservative financial approach.
In-Depth Valuation Examination:
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Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 12.2, the stock indicates an attractive valuation, potentially presenting a buying opportunity.
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Price to Sales (P/S) Ratio: The current P/S ratio of 1.29 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 8.51, Avantor’s EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation
Market Capitalization Analysis: Below industry benchmarks, the company’s market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.
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The Impact of Insider Transactions on Investments
Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.
In the realm of legality, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.
Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.
A Deep Dive into Insider Transaction Codes
In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously 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 Avantor’s Insider Trades.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
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