Jonathan A. Leon, the Executive Vice President and Chief Financial Officer of Owens & Minor Inc. (NYSE:OMI), recently sold 5,282 shares of the company's common stock. The transaction, executed on November 21, was conducted at an average price of $11.82 per share, amounting to a total sale value of $62,433. Following this sale, Leon retains direct ownership of 130,822 shares in the company. The sale was made under a pre-arranged Rule 10b5-1 trading plan, which was put into effect on August 9, 2023.
In other recent news, Owens & Minor, a global healthcare solutions company, reported a 5% year-over-year increase in Q3 2024 revenue to $2.7 billion, with its Patient Direct segment growing by 6% due to robust demand for diabetes and sleep supplies. The company also reduced its total debt by nearly $200 million in Q3, despite disruptions caused by Hurricanes Helene and Milton. The company's revenue forecast for 2024 is anticipated 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 expected to be $1.45 to $1.55.
In other recent developments, 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. This followed the company's Q3 performance and the analyst's anticipation of cash flow improvement. The acquisition of Rotech Healthcare Holdings is set to close in the first half of 2025.
Despite challenges, Owens & Minor remains optimistic about ongoing improvements in global products, especially in international markets. The company also announced an amendment to its executive compensation program. Under the revised plan, company contributions to executive accounts will now be at the discretion of Owens & Minor or other participating employers. These contributions will become vested after executives complete one year of service. The specifics of the Amended and Restated Plan will be disclosed in full detail in the company's Annual Report on Form 10-K for the year ending December 31, 2024.
InvestingPro Insights
While Jonathan A. Leon's recent stock sale might raise eyebrows, it's crucial to consider Owens & Minor's broader financial picture. According to InvestingPro data, the company's market capitalization stands at $952.3 million, with a revenue of $10.66 billion for the last twelve months as of Q3 2023. This indicates that Owens & Minor is trading at a low revenue valuation multiple, which could be of interest to value-oriented investors.
An InvestingPro Tip highlights that Owens & Minor is a prominent player in the Healthcare Providers & Services industry. This positioning could be advantageous as the healthcare sector continues to evolve and grow. However, another InvestingPro Tip notes that seven analysts have revised their earnings downwards for the upcoming period, suggesting some caution may be warranted.
It's worth noting that while the company was not profitable over the last twelve months, analysts predict it will be profitable this year. This potential turnaround could explain why the company's adjusted P/E ratio for the last twelve months stands at 7.66, indicating a relatively low valuation compared to earnings expectations.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights. In fact, there are 4 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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