Should Investors Pay Attention To These Insider Trades For Becton Dickinson and Company (BDX)?

The stock of Becton Dickinson and Company (NYSE:BDX) increased by increased by $0.62 on Friday to finish at $247.09, up 0.25 percent. The last five days have seen an average of 877,660 shares of common stock traded. 7 times new highs were reached in the current year, with a fall of -$3.13. The average number of shares traded over the last 20 days was 1,264,945, while the average volume over the last 50 days totaled 1,342,234.

BDX stock dropped -2.65% since last month. On 10/12/21, the company’s shares reached a one-month low of $235.13. The stock touched a high of $267.37 on 01/12/21, after rallying from a low of $226.15 in 52 weeks. The price of BDX stock has declined by -1.25% or -$3.13 this year, reaching a new high 7 times. Still, the stock price is down -7.58% from the 52-week high.


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Insider Transactions

There have been 47 days since Becton Dickinson and Company (BDX) last reported insider trading activity on Sep 08. On Sep 08, EVP & President, Life Sciences Hickey David sold 500 shares at $260.00 each. This transaction resulted in the insider making $130,000. On Sep 08, RIMEL REBECCA W sold 500 shares at a price of US$260.00. After the transaction, the insider now owns 10,618 shares. VP Controller & Chief Acct Off Spoerel Thomas J had earlier sold 267 shares on Sep 08 for $260.00 a share. The transaction was completed for $69,420.

Valuation Metrics

Becton Dickinson and Company (BDX) has a trailing price-to-earnings (P/E) ratio of 38.81. This level actually compares favorably with the industry at large, as the PE for the Medical Instruments & Supplies industry stands at about 42.68. Further, its PE also compares unfavorably with the Healthcare sector’s trailing 12 months PE ratio, which comes in at 33.43 right now. The PE ratio of Becton Dickinson and Company has varied between 600.86 and 27.33 in the last five years. Beta for the stock is 0.73. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 3.56, the price-to-book (PB) ratio of 2.96, and the price-to-cash flow ratio of 22.77.

Becton Dickinson and Company’s dividend is $3.32 per share per year. With a dividend yield of 1.34%, BDX has a payout ratio of 51.10%. On Sep. 30, the company paid $0.83 per share in dividends, remained unchanged from $0.83 last year. A $0.04 dividend increase was reported on Tuesday November 24 2020, making it the 50 consecutive year the dividend has increased. Over the last three years, dividends have increased by 8.84%.

For the three months ended June 29, Becton Dickinson and Company’s quick ratio was 0.90, while its current ratio was 1.20, indicating its inability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 0.65, and the total debt to equity ratio is 0.73. As far as profitability goes, gross margin for the trailing twelve months is 47.30% percent. Becton Dickinson and Company’s EBITDA margin for the year ended June 29 was 24.46%, whereas its operating margin stood at 12.70% for the same period. Based on annual data, it had gross profit of $7.58 billion and revenue of $17.12 billion.

Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. BDX’s return on assets (ROA) during the last 12 months has been 3.40%. There was a 3.30% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 7.70%. ROE has averaged 3.96 in the past year for the broader industry.

Earnings Surprise

According to Becton Dickinson and Company’s quarterly financial report for the quarter that ended June 29, it had $15.7 billion in total debt versus $24.0 million in cash and short-term investments. A lower net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $4.89 billion, while revenues rose by 21.17% to $4.91 billion. It was predicted that Becton Dickinson and Company’s quarterly earnings would be $2.74, but it ended up being $2.44, beating the consensus by 12.30%. EBITDA was $1.2 billion for the quarter. At the end of Becton Dickinson and Company’s most recent quarter ended June 29, its liabilities totaled 30.2 billion, while its total debt was $17.73 billion. Equity owned by shareholders amounts to $287.19 million.

Technical Picture

Here’s a quick look at Becton Dickinson and Company’s (BDX) price momentum from a technical perspective. As of 22 October, the RSI 9-day stood at 56.83%, suggesting the stock is Neutral, with a 14.68% historical volatility rate.

The stochastic %K and %D were 88.17% and 70.49% respectively, while the average true range (ATR) was 3.82. Based on the 14-day stochastic reading of 89.59%, the RSI (14) reading is 51.81%. On the 9-day MACD Oscillator, the stock is at 4.19, and the 14-day reading is at 4.81.

Analyst Ratings

Becton Dickinson and Company (NYSE: BDX) was downgraded by JP Morgan to a a Neutral rating in its latest research report. The stock was previously rated as a an Overweight. Analysts have assigned Becton Dickinson and Company (BDX) an Overweight rating. BDX is a stock that is recommended for selling by 0 brokerage firms, while 9 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 1 rate it overweight and 9 others recommend it as a buy.

What is BDX’s price target for the next 12 months?

The current consensus forecast for the stock is between $250.00 and $285.00, with a median target price of $268.50. In analyzing these forecasts, the average price target given by analysts for Becton Dickinson and Company (BDX) is $267.64.

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