Cencora, Inc. (NYSE:COR) CEO Steven H. Collis has recently sold a total of 10,754 shares of the company's common stock, according to a new SEC filing. The transactions, which took place on April 16, 2024, resulted in proceeds of over $2.5 million for Collis. The shares were sold at an average price of $237.48, reflecting a significant return on his initial investment.
This sale was executed in accordance with a pre-arranged Rule 10b5-1 trading plan, which Collis had entered into on December 18, 2023, and was previously disclosed in a Form 8-K filed with the SEC. Rule 10b5-1 trading plans allow company insiders to sell a predetermined number of shares at a predetermined time to avoid accusations of insider trading.
On the same day, Collis also acquired 10,754 shares of Cencora common stock at a price of $89.58 per share, amounting to a total transaction value of $963,343. These shares were acquired as part of an options exercise, which is a common practice for company executives to convert their options into stock.
Following the sale, Collis's ownership in Cencora has been adjusted to 285,088 shares of common stock. The transactions have been publicly filed and can be viewed by investors for transparency. Collis continues to hold a significant stake in the company, indicating a continued vested interest in Cencora's performance and growth.
Investors often monitor insider transactions as they can provide insights into executives' perspectives on the company's valuation and future prospects. However, it's important to consider that such transactions are part of routine financial planning for many executives and do not always signal changes in company performance or strategy.
Cencora, Inc., with its headquarters in Conshohocken, Pennsylvania, is a leading company in the wholesale drug distribution industry. The company's stock is traded on the New York Stock Exchange under the ticker symbol COR.
InvestingPro Insights
Amidst the recent insider transactions by Cencora, Inc. (NYSE:COR) CEO Steven H. Collis, investors and analysts are closely watching the company's performance metrics. According to real-time data from InvestingPro, Cencora's market capitalization stands at a robust $47.55 billion. The company's P/E ratio is currently at 25.68, which reflects a notable valuation of the company when taking into account its earnings.
Cencora's commitment to shareholders is evident in its dividend track record. An InvestingPro Tip notes that Cencora has raised its dividend for 19 consecutive years and has maintained dividend payments for 24 consecutive years. This consistency highlights the company's stable cash flow and its prioritization of shareholder returns. In the last twelve months as of Q1 2024, the company reported a dividend yield of 0.86%, with a dividend growth rate of 5.15%.
Another InvestingPro Tip draws attention to Cencora's share buyback strategy. Management has been aggressively buying back shares, which can be an indicator of the company's belief in its own undervalued stock and can often lead to an increase in share price due to the reduced number of shares outstanding.
For investors looking to delve deeper into Cencora's financials and strategic insights, InvestingPro offers additional tips. In fact, there are 18 more InvestingPro Tips available for Cencora, including analyses of valuation multiples, profitability, and debt levels. To gain access to these insights and to help make more informed investment decisions, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
As the company approaches its next earnings date on May 1, 2024, investors are likely to scrutinize these metrics further. With the stock trading near its 52-week high and having experienced a large price uptick over the last six months, the market sentiment around Cencora appears to be positive. However, it's crucial for investors to consider all aspects of the company's financial health and market position before making investment decisions.
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