CHARLOTTE, NC—Michael J. Alkire, the President and CEO of Premier, Inc. (NASDAQ:PINC), recently sold a portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Alkire sold 17,900 shares of Class A Common Stock on October 17. The shares were sold at a weighted average price ranging from $20.00 to $20.02 per share, resulting in a total transaction value of approximately $358,000.
Following this transaction, Alkire retains ownership of 540,243 shares in the company. The sales were conducted under a prearranged Rule 10b5-1 trading plan, which Alkire adopted earlier in the year on February 23, 2024.
This transaction provides insight into the executive's current stake in the company, as well as the ongoing execution of his trading plan.
In other recent news, Premier Inc. has been the subject of several significant financial adjustments and strategic decisions. The healthcare improvement company has reported strong fiscal fourth-quarter results for 2024, with total net revenue of $350.3 million and adjusted EBITDA of $118.7 million. However, Premier's financial outlook for 2025 has led several analyst firms including Benchmark, Piper Sandler, Canaccord Genuity, and Baird to revise their outlooks and reduce their price targets for the company.
Premier has also announced the divestiture of non-core assets and an expansion of its partnership with Prestige Ameritech, a leading U.S. personal protective equipment manufacturer. This strategic move involves Premier divesting its holdings in S2S Global, its direct sourcing subsidiary, in exchange for a 20 percent stake in Prestige, raising Premier's total ownership to approximately 24.2 percent.
Glenn Coleman has been appointed as the new CFO of Premier, set to take over at the end of 2024, and the company maintains a robust cash position, with $125.1 million in cash and equivalents. As part of its latest financial strategy, Premier anticipates a low to mid 40s EBITDA margin for supply chain services and mid-20s for performance services in fiscal 2025. These are recent developments that investors should take note of as they indicate the company's strategic direction and financial health.
InvestingPro Insights
While Michael J. Alkire's recent stock sale might raise questions, it's important to view this transaction in the broader context of Premier, Inc.'s (NASDAQ:PINC) financial health and market position. According to InvestingPro data, Premier boasts a market capitalization of $2.02 billion and trades at a price-to-earnings ratio of 19.16, suggesting a moderate valuation relative to its earnings.
An InvestingPro Tip highlights that management has been aggressively buying back shares, which could be seen as a vote of confidence in the company's future prospects. This share repurchase activity may help offset any potential negative sentiment from insider sales.
Another noteworthy InvestingPro Tip reveals that Premier has raised its dividend for 4 consecutive years, demonstrating a commitment to returning value to shareholders. With a current dividend yield of 4.2%, the stock may be attractive to income-focused investors.
It's worth noting that Premier's revenue growth has been modest, with a 0.77% increase in the last twelve months. However, the company maintains a strong gross profit margin of 65.96%, indicating efficient cost management.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. In fact, there are 9 more InvestingPro Tips available for Premier, Inc., providing a deeper understanding of the company's financial position and market outlook.
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