Premier Inc's (NASDAQ:PINC) President and CEO, Michael J. Alkire, has sold a significant number of shares in the company. On September 4, 2024, Alkire sold 19,362 shares of Class A Common Stock at a weighted average price of $20.83 per share, totaling approximately $403,310. Following this transaction, Alkire's direct holdings in the company have decreased but still amount to a substantial 578,143 shares.
The sale was carried out under a Rule 10b5-1 trading plan, which Alkire had adopted earlier in the year on February 23, 2024. This plan allows company insiders to sell shares over a predetermined schedule to avoid accusations of trading on nonpublic information.
Investors should note that the shares were sold at varying prices ranging from $20.69 to $21.02, with the average sale price reported as $20.83. The CEO has committed to providing full details of the number of shares sold at each price point upon request from the issuer, any security holder, or the SEC staff.
Premier Inc, based in Charlotte, North Carolina, operates in the healthcare industry, providing services such as management and consulting to healthcare facilities. The sale by Alkire represents a routine transaction by a company insider and is disclosed to the public as part of the regulatory requirements set by the Securities and Exchange Commission.
The company's shares are publicly traded on the NASDAQ, and this transaction provides transparency to investors and the market regarding the trading activities of its top executives.
In other recent news, Premier Inc. reported a robust fiscal year 2024, with a total net revenue of $350.3 million for the fourth quarter and adjusted EBITDA of $118.7 million. Despite this, Benchmark downgraded Premier from Buy to Hold due to concerns over the company's fiscal year 2025 guidance. Similarly, Piper Sandler, Canaccord Genuity, and Baird all revised their price targets for Premier, citing potential challenges in the upcoming fiscal year.
Premier has also initiated strategic moves, including the sale of underperforming subsidiaries and a substantial share repurchase program. To date, the company has completed $400 million of a $1 billion share buyback authorization, with an additional $200 million recently initiated.
In terms of personnel changes, Premier announced the retirement of CFO Craig McKasson at the end of 2024, with Glenn Coleman set to succeed him. Recent developments also include Premier's plans to divest non-core assets and a forecast of a low to mid 40s EBITDA margin for supply chain services and mid 20s for performance services in fiscal 2025. Despite lower profit margins affecting the adjusted EBITDA, Premier maintains a robust cash position, with $125.1 million in cash and equivalents.
InvestingPro Insights
Amid the news of Premier Inc's (NASDAQ:PINC) CEO selling a significant number of shares, the company's financial health and market performance remain vital for investors to consider. One notable InvestingPro Tip is that management has been actively repurchasing shares, signaling confidence in the company's value and future prospects. Additionally, Premier Inc has consistently raised its dividend for four consecutive years, which could be appealing for income-focused investors.
From an InvestingPro Data perspective, Premier Inc currently holds a market capitalization of $2.05 billion, with a P/E ratio of 19.39, reflecting investors' expectations about the company's earnings growth. The company's strong free cash flow yield is implied by its adjusted P/E ratio of 8.14 for the last twelve months as of Q4 2024, which suggests the company is generating ample cash relative to its share price. Moreover, Premier Inc's dividend yield stands at 4.05%, as of the last recorded date, underscoring the company's commitment to returning value to shareholders.
For investors seeking further insights, there are additional InvestingPro Tips available, which can provide a deeper analysis of Premier Inc's financials, market performance, and future outlook. These tips can be accessed through the dedicated InvestingPro platform for Premier Inc at https://www.investing.com/pro/PINC.
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