A significant insider buy by GREGORY SUMME, Director at Avantor AVTR, was executed on May 27, and reported in the recent SEC filing.
What Happened: SUMME demonstrated confidence in Avantor by purchasing 30,000 shares, as reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total value of the transaction is $375,000.
In the Wednesday’s morning session, Avantor‘s shares are currently trading at $13.24, experiencing a up of 0.68%.
Unveiling the Story Behind Avantor
Avantor Inc provider of products and services to customers in the biopharma, healthcare, education & government, and advanced technologies & applied materials industries. The company has three geographic segments: the Americas, Europe, and AMEA. The company’s product group consists of Equipment & instrumentation, Services & specialty procurement, Proprietary materials & consumables, and Third-party materials & consumables. Materials & consumables include high-purity chemicals and reagents, lab products and supplies, specialized formulated silicone materials, customized excipients, customized single-use assemblies, process chromatography resins and columns, analytical sample prep kits, and education and microbiology and clinical trial kits, peristaltic pumps and fluid handling tips.
Financial Insights: Avantor
Revenue Challenges: Avantor’s revenue growth over 3 months faced difficulties. As of 31 March, 2025, the company experienced a decline of approximately -5.86%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Health Care sector.
Holistic Profitability Examination:
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Gross Margin: The company faces challenges with a low gross margin of 33.82%, suggesting potential difficulties in cost control and profitability compared to its peers.
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Earnings per Share (EPS): Avantor’s EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.09.
Debt Management: Avantor’s debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.67.
Understanding Financial Valuation:
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Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 12.64 is lower than the industry average, indicating potential undervaluation for the stock.
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Price to Sales (P/S) Ratio: The P/S ratio of 1.34 is lower than the industry average, implying a discounted valuation for Avantor’s stock in relation to sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a below-average EV/EBITDA ratio of 8.73, Avantor presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.
Market Capitalization Analysis: The company’s market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
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Illuminating the Importance of Insider Transactions
While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.
When discussing legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Important Transaction Codes
When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Avantor’s Insider Trades.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
