Group President At Cross Country Healthcare Sells $202K Of Stock

On May 30, a recent SEC filing unveiled that Marc S Krug, Group President at Cross Country Healthcare (NASDAQ:CCRN) made an insider sell.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday, Krug sold 13,657 shares of Cross Country Healthcare. The total transaction value is $202,396.

Monitoring the market, Cross Country Healthcare's shares down by 0.0% at $14.75 during Friday's morning.

Delving into Cross Country Healthcare's Background

Cross Country Healthcare Inc is a provider of total talent management services, including strategic workforce solutions, contingent staffing, permanent placement, and consultative services for healthcare customers. The company operates in two business segments: the nurse and allied staffing segment, which generates a vast majority of revenue, offers temporary and permanent placements of travel and local nurses and allied professionals, and other outsourcing services.: the Physician Staffing segment provides licensed practitioners across a broad array of specialties, as well as certified registered nurse anesthetists (CRNAs), nurse practitioners (NPs), and physician assistants (PAs) on temporary assignments. The company earns majority of its revenue from the United States.

Financial Milestones: Cross Country Healthcare's Journey

Revenue Growth: Cross Country Healthcare's revenue growth over a period of 3 months has faced challenges. As of 31 March, 2024, the company experienced a revenue decline of approximately -39.11%. This indicates a decrease in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Health Care sector.

Insights into Profitability:

Gross Margin: The company shows a low gross margin of 20.39%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

Earnings per Share (EPS): Cross Country Healthcare's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.08.

Debt Management: With a below-average debt-to-equity ratio of 0.01, Cross Country Healthcare adopts a prudent financial strategy, indicating a balanced approach to debt management.

Valuation Metrics: A Closer Look

Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 11.17 is lower than the industry average, indicating potential undervaluation for the stock.

Price to Sales (P/S) Ratio: The current P/S ratio of 0.29 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Cross Country Healthcare's EV/EBITDA ratio at 5.73 suggests potential undervaluation, falling below industry averages.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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Why Insider Transactions Are Important

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.

In the context of 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 outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

A Closer Look at Important Transaction Codes

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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 Cross Country Healthcare's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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