Burlington (NYSE:BURL), MA—Herman Cueto, Executive Vice President and Chief Financial Officer of Azenta, Inc. (NASDAQ:AZTA), recently sold shares of the company valued at approximately $28,529. The transaction, which took place on November 19, 2024, involved the sale of 712 shares at a weighted average price of $40.07 per share.
The sale was conducted to cover withholding tax obligations related to the vesting of restricted stock units. Following this transaction, Cueto holds 23,892 shares directly. The shares were sold at prices ranging from $38.83 to $41.48 over a two-day period, from November 18 to November 19, 2024.
In other recent news, Azenta has seen a flurry of activity. The company's fourth fiscal quarter of 2024 results showed alignment with consensus on revenue and EBITDA, and exceeded expectations on earnings per share (EPS). Azenta's CEO announced several strategic shifts, including the divestiture of B Medical (TASE:PMCN) Systems, a move anticipated to be received well by investors. The company's fiscal year 2025 guidance has been adjusted to exclude B Medical's contributions, but it has incorporated a moderated growth forecast for the company's SMS and Multiomics divisions.
Needham revised its price target for Azenta to $55.00, down from the previous $69.00, while reaffirming a Buy rating on the company's shares. Meanwhile, Evercore ISI adjusted its price target for Azenta from $50 to $48, maintaining an In Line rating. Both firms took into account Azenta's recent developments, such as the planned sale of B Medical and the company's continued commitment to its Ascend 2026 initiatives.
Azenta forecasts 3% to 5% organic revenue growth for 2025, excluding B Medical. The company anticipates growth in the low single digits for Multiomics and in the mid-single digits for SMS. These developments come as Azenta continues its transformation program "Ascend 2026," targeting site rationalization and operational simplification.
InvestingPro Insights
Following the recent share sale by CFO Herman Cueto, it's worth examining Azenta's financial position through the lens of InvestingPro data. Despite the company's recent stock performance, with a year-to-date price total return of -31.46%, Azenta maintains a strong balance sheet. According to InvestingPro Tips, the company holds more cash than debt, indicating financial stability in the face of market challenges.
InvestingPro data shows that Azenta's market capitalization stands at $2.08 billion, with a revenue of $656.32 million for the last twelve months as of Q4 2024. While the company is not currently profitable, with an operating income margin of -10.5%, analysts predict that Azenta will turn profitable this year. This projection aligns with the InvestingPro Tip that net income is expected to grow this year.
The company's price-to-book ratio of 1.17 suggests that the stock may be undervalued relative to its assets. Additionally, Azenta's liquid assets exceed short-term obligations, as highlighted by another InvestingPro Tip, which could provide a cushion during periods of financial stress.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for Azenta, providing deeper insights into the company's financial health and market position. These additional tips could be particularly valuable given the recent insider transaction and the company's current financial metrics.
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