A large exercise of company stock options by CHARLES KEVIN GORMAN, Board Member at Neurocrine Biosciences NBIX was disclosed in a new SEC filing on May 22, as part of an insider exercise.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Thursday showed that GORMAN, Board Member at Neurocrine Biosciences, a company in the Health Care sector, just exercised stock options worth 0 shares of NBIX stock with an exercise price of $0.0.
Neurocrine Biosciences shares are trading, exhibiting down of 0.0% and priced at $119.12 during Friday’s morning. This values GORMAN’s 0 shares at $0.
About Neurocrine Biosciences
Neurocrine Biosciences Inc engages in the discovery, development, and commercialization of drugs for the treatment of neurological and endocrine-related diseases and disorders in the United States. The company’s products include INGREZZA for tardive dyskinesia and chorea associated with Huntington’s disease; ALKINDI for adrenal insufficiency; Efmody capsules for classic congenital adrenal hyperplasia; Orilissa tablets for endometriosis; and Oriahnn capsules to treat uterine fibroids.
Neurocrine Biosciences: Delving into Financials
Revenue Growth: Over the 3 months period, Neurocrine Biosciences showcased positive performance, achieving a revenue growth rate of 11.12% as of 31 March, 2025. 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.
Profitability Metrics: Unlocking Value
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Gross Margin: Achieving a high gross margin of 98.39%, the company performs well in terms of cost management and profitability within its sector.
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Earnings per Share (EPS): Neurocrine Biosciences’s EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.08.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.18.
Assessing Valuation Metrics:
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Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 40.38 is lower than the industry average, indicating potential undervaluation for the stock.
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Price to Sales (P/S) Ratio: The current P/S ratio of 5.11 is above industry norms, reflecting an elevated valuation for Neurocrine Biosciences’s stock and potential overvaluation based on sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 20.18, the company’s EV/EBITDA ratio outperforms industry norms, reflecting positive market perception. This positioning indicates optimistic expectations for the company’s future performance.
Market Capitalization Analysis: Falling below industry benchmarks, the company’s market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.
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Delving Into the Significance of Insider Transactions
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.
Deciphering Transaction Codes in Insider Filings
Examining transactions, investors often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates 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 Neurocrine Biosciences’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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