A substantial insider activity was disclosed on May 20, as III, Board Member at Medpace Hldgs MEDP, reported the exercise of a large sell of company stock options.
What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday revealed that III, Board Member at Medpace Hldgs in the Health Care sector, exercised stock options for 0 shares of MEDP stock. The exercise price of the options was $0.0 per share.
As of Wednesday morning, Medpace Hldgs shares are down by 3.26%, with a current price of $296.62. This implies that III’s 0 shares have a value of $0.
Unveiling the Story Behind Medpace Hldgs
Medpace is a late-stage contract research organization that provides full-service drug-development and clinical trial services to small and midsize biotechnology, pharmaceutical, and medical-device firms. It also offers ancillary services such as bioanalytical laboratory services and imaging capabilities. The company was founded over 30 years ago and has over 5,400 employees across 40 countries. Medpace is headquartered in Cincinnati and its operations are principally based in the US, but it also operates in Europe, Asia, South America, Africa, and Australia. Cinven, a global private equity firm, acquired Medpace for $915 million in 2014 and exited its investment in 2018.
Understanding the Numbers: Medpace Hldgs’s Finances
Revenue Growth: Medpace Hldgs’s revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2025, the company achieved a revenue growth rate of approximately 9.3%. This indicates a substantial increase in the company’s top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Health Care sector.
Evaluating Earnings Performance:
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Gross Margin: The company faces challenges with a low gross margin of 31.93%, suggesting potential difficulties in cost control and profitability compared to its peers.
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Earnings per Share (EPS): Medpace Hldgs’s EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 3.77.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.21.
Market Valuation:
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Price to Earnings (P/E) Ratio: Medpace Hldgs’s P/E ratio of 23.41 is below the industry average, suggesting the stock may be undervalued.
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Price to Sales (P/S) Ratio: The Price to Sales ratio is 4.52, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Medpace Hldgs’s EV/EBITDA ratio at 17.5 suggests potential undervaluation, falling below 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.
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Why Insider Transactions Are Important
While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.
Exploring the legal landscape, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.
Highlighted by a company insider’s new purchase, there’s a positive anticipation for the stock to rise.
But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Cracking 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 Medpace Hldgs’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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