A significant insider buy by GREGORY SUMME, Board Member at Avantor AVTR, was executed on May 22, and reported in the recent SEC filing.
What Happened: SUMME’s recent move, as outlined in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday, involves purchasing 20,000 shares of Avantor. The total transaction value is $253,000.
The latest market snapshot at Friday morning reveals Avantor shares up by 0.23%, trading at $12.89.
Discovering Avantor: A Closer Look
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.
Unraveling the Financial Story of Avantor
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.
Analyzing Profitability Metrics:
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Gross Margin: With a low gross margin of 33.82%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.
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Earnings per Share (EPS): With an EPS below industry norms, Avantor exhibits below-average bottom-line performance with a current EPS of 0.09.
Debt Management: Avantor’s debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.67.
Financial Valuation Breakdown:
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Price to Earnings (P/E) Ratio: The P/E ratio of 12.37 is lower than the industry average, implying a discounted valuation for Avantor’s stock.
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Price to Sales (P/S) Ratio: The current P/S ratio of 1.31 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): The company’s EV/EBITDA ratio 8.59 is below the industry average, indicating that it may be relatively undervalued compared to peers.
Market Capitalization: Indicating a reduced size compared to industry averages, the company’s market capitalization poses unique challenges.
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Unmasking the Significance of Insider Transactions
It’s important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.
When discussing legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Navigating the World of Insider Transaction Codes
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 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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