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Premier Inc. COO Conducts Share Sale Amidst Mixed Q1 Results
In a notable financial move, Anderson Leigh, who serves as the Chief Operating Officer for Premier Inc. (NASDAQ:PINC), executed the sale of 20,000 shares of Class A Common Stock. This transaction, conducted on December 20, was carried out under a Rule 10b5-1 trading plan and amounted to a total value of $437,600, with shares sold at a weighted average price of $21.88. The specifics reveal that individual transaction prices varied, ranging from $21.53 to $22.06. Following this sale, Leigh remains a significant shareholder, retaining ownership of 111,707 shares in the company. Recent analysis suggests that Premier’s stock may be undervalued, highlighted by a compelling free cash flow yield of 10% along with a solid history of dividend growth over the past four years.
Additionally, Premier Inc. recently reported its Q1 financial results, showcasing a decline as total net revenue decreased by 8% to $248.1 million, though this figure slightly surpassed analysts’ expectations. The company’s Supply Chain Services segment performed robustly, while Performance Services revenues did not meet anticipated targets. It is noteworthy that the GAAP net income was bolstered by a $57 million gain stemming from a derivative lawsuit settlement, leading to a cumulative total of $72.9 million.
In another important update, Premier’s shareholders convened for their Annual Meeting of Stockholders, where they approved board nominees and executive compensation packages. Among the key decisions made were the election of two Class II Directors, the ratification of Ernst & Young LLP as the company’s independent auditor, and approval regarding executive pay.
The company also informed stakeholders about a significant cash dividend payout totaling $21.3 million, alongside a $23 million repurchase of Class A common shares. While the company anticipates a sequential decline in net administrative fees revenue in the upcoming Q2, Premier has maintained its full-year guidance. Leaders attribute this optimistic outlook to robust member relationships and notably high contract renewal rates. In addition, CFO Craig McKasson will be retiring in December after a lengthy 27-year career with the company, marking a significant transition in leadership. Premier Inc. is committed to a disciplined capital deployment strategy while simultaneously seeking new avenues for growth.
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