Snehashish Sarkar, the Chief Information Officer of Owens & Minor Inc. (NYSE:OMI), recently sold a portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Sarkar sold 2,055 shares of common stock on November 18 at a price of $12.26 per share, amounting to a total transaction value of $25,194. This sale was conducted under a Rule 10b5-1 trading plan, which Sarkar adopted on March 4, 2024.
Additionally, on November 15, Sarkar surrendered 1,196 shares to the company at $12.27 per share to cover tax obligations related to the vesting of restricted stock. Following these transactions, Sarkar holds 55,886 shares of Owens & Minor stock.
In other recent news, Owens & Minor announced an amendment to its Executive Deferred Compensation and Retirement Plan (EDCRP), which will take effect on January 1, 2025. The company also reported a 5% year-over-year revenue increase to $2.7 billion in Q3 2024, with its Patient Direct segment growing by 6% due to strong demand for diabetes and sleep supplies. Despite disruptions from Hurricanes Helene and Milton, Owens & Minor reduced its total debt by nearly $200 million in Q3. The company's revenue forecast for 2024 is expected to be between $10.6 billion and $10.8 billion, with adjusted EBITDA ranging from $540 million to $550 million, and adjusted earnings per share projected to be $1.45 to $1.55. Meanwhile, Baird adjusted the financial outlook for Owens & Minor, reducing the stock's price target to $14.00 from the previous $19.00 while maintaining a neutral rating. The acquisition of Rotech Healthcare Holdings is set to close in the first half of 2025. These are the recent developments for Owens & Minor.
InvestingPro Insights
As we analyze the recent insider transaction by Owens & Minor's CIO, it's worth considering some key financial metrics and insights from InvestingPro to provide a broader context for the company's current position.
Owens & Minor, with a market capitalization of $953.07 million, is currently trading at a price-to-book ratio of 1.09, suggesting the stock may be reasonably valued relative to its book value. The company's revenue for the last twelve months stands at $10.66 billion, with a modest growth of 4.22% over the same period.
An InvestingPro Tip indicates that Owens & Minor is a prominent player in the Healthcare Providers & Services industry, which aligns with its substantial revenue figures. However, another tip reveals that the company has not been profitable over the last twelve months, with a negative P/E ratio of -19.47. This could explain the recent insider selling activity, as executives may be cautious about the company's near-term financial performance.
Interestingly, analysts predict that Owens & Minor will return to profitability this year, which could signal a potential turnaround. This optimism is reflected in the company's forward-looking adjusted P/E ratio of 7.7, suggesting an expectation of improved earnings.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. Currently, there are 7 more InvestingPro Tips available for Owens & Minor, which could provide valuable context for understanding the company's financial health and market position.
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