In a recent transaction, Kimberley E. Honeysett, the Senior Vice President and Chief Legal Officer (SVP and CLO) of Varex Imaging Corp (NASDAQ:VREX), sold 2,860 shares of the company's common stock. The transaction, dated March 15, 2024, resulted in a total value of approximately $49,678, with the shares being sold at a price of $17.37 each.
Varex Imaging Corp, known for its production of electronic components, saw this sale take place under a prearranged 10b5-1 trading plan, which Honeysett had adopted on December 15, 2023. Such plans allow company insiders to set up a predetermined schedule for buying and selling stocks to avoid accusations of trading on insider information.
The transaction has slightly adjusted Honeysett's holdings in the company, leaving her with 2,853 shares of Varex Imaging Corp directly under her name. Additionally, she has an indirect ownership of 195 shares held by a trust. It is also noted that since the last reporting, Honeysett has acquired 275 shares under the Varex Imaging Corporation 2017 Employee Stock Purchase Plan.
Investors often monitor insider transactions as they can provide valuable insights into an executive's perspective on the company's current valuation and future prospects. However, it is important to consider that selling shares does not necessarily indicate a lack of confidence in the company, as executives may have diverse personal reasons for selling, including portfolio diversification or liquidity needs.
Varex Imaging Corp's stock transactions by its executives are closely watched by investors seeking to understand the financial health and trajectory of the company within the competitive electronics components industry.
InvestingPro Insights
Varex Imaging Corp (NASDAQ:VREX), a prominent player in the electronic components sector, is currently trading at a compelling valuation, according to InvestingPro metrics. With a Price/Earnings (P/E) ratio of 15.82, and an adjusted P/E ratio of 13.02 for the last twelve months as of Q1 2024, the company's stock is positioned at a low multiple relative to its near-term earnings growth. This suggests that the shares might be undervalued, presenting a potential opportunity for investors.
Moreover, Varex's valuation implies a strong free cash flow yield, as reflected in the InvestingPro Tips, which can be an attractive quality for value-oriented investors. The company's PEG Ratio, which stands at 0.57 for the last twelve months as of Q1 2024, further underlines its growth at a reasonable price. The firm's stock also generally trades with low price volatility, adding a layer of stability in a market that can often be turbulent.
Financial stability is another key aspect for Varex, with liquid assets surpassing short-term obligations. This financial footing, coupled with the fact that analysts predict the company will be profitable this year, as confirmed by its positive net income over the last twelve months, offers reassurance about the company's ability to sustain its operations and potentially invest in future growth.
For investors interested in a deeper dive into Varex Imaging Corp's financials and stock performance, InvestingPro provides additional insights. There are 6 more InvestingPro Tips available for VREX, which can be accessed at: https://www.investing.com/pro/VREX. And remember, for those looking to subscribe to a yearly or biyearly Pro and Pro+ subscription, use the coupon code PRONEWS24 to get an additional 10% off.
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