BURLINGTON, MA—Ginger Zhou, the Senior Vice President and General Manager of Genomics at Azenta, Inc. (NASDAQ:AZTA), recently sold shares of the company's stock. According to a recent filing, Zhou disposed of 491 shares, generating a total of $19,674. The shares were sold at a weighted average price of $40.07 per share, with the sale occurring between November 18 and November 19, 2024.
Following this transaction, Zhou retains direct ownership of 27,499 shares in the company. The sale was executed to cover tax obligations related to the vesting of previously awarded restricted stock units.
In other recent news, Azenta Inc. saw several significant developments. The company reported a 2% decrease in annual revenue for FY 2024, amounting to $656 million, and a similar 2% dip in organic revenue for the fourth quarter, matching Street estimates. Despite these declines, Azenta's Sample Management Services (SMS) and Multiomics sectors saw growth, with the former growing by 3% and the latter by 8%.
Azenta also announced the planned sale of B Medical (TASE:PMCN) Systems, a move expected to be finalized in the first half of fiscal year 2025. This strategic decision is anticipated to streamline the company's focus and boost growth in core areas. In line with this, Azenta forecasts 3% to 5% organic revenue growth for 2025, excluding B Medical's contributions.
Analysts from Needham and Evercore ISI revised their price targets for Azenta to $55 and $48, respectively, following these developments. Despite the reduced targets, both firms maintained their ratings, with Needham reiterating a Buy rating and Evercore ISI keeping an In-Line rating. These adjustments are part of the recent developments impacting Azenta's financial outlook.
InvestingPro Insights
As we examine Ginger Zhou's recent stock sale at Azenta, Inc. (NASDAQ:AZTA), it's worth considering some key financial metrics and insights from InvestingPro to provide a broader context for the company's current position.
Azenta's market capitalization stands at $2.08 billion, reflecting its position in the life sciences and semiconductor industries. Despite the recent insider sale, InvestingPro Tips highlight that Azenta holds more cash than debt on its balance sheet, indicating a strong liquidity position. This is further supported by the fact that the company's liquid assets exceed its short-term obligations, suggesting financial stability in the near term.
However, it's important to note that Azenta has not been profitable over the last twelve months, with a negative P/E ratio of -31.12. This aligns with the company's operating income margin of -10.5% for the same period. On a more positive note, analysts predict that Azenta will be profitable this year, and net income is expected to grow, potentially signaling a turnaround in the company's financial performance.
Investors should also be aware that Azenta is trading at a high EBITDA valuation multiple, which could indicate that the stock is relatively expensive compared to its peers. This valuation metric, combined with the company's recent financial performance, may explain why two analysts have revised their earnings downwards for the upcoming period.
For those interested in a more comprehensive analysis, InvestingPro offers additional tips and insights on Azenta. In fact, there are 8 more InvestingPro Tips available for AZTA, which could provide valuable context for investors evaluating the company's prospects in light of recent insider transactions and market conditions.
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