In a recent transaction, Gull Global Ltd, an entity indirectly owned and controlled by Dr. Myron W. Wentz, has sold a significant amount of USANA Health Sciences Inc (NYSE:USNA) stock. The sales, which occurred on two separate dates, amounted to a total of $712,958.
On June 12, 2024, Gull Global Ltd disposed of 2,202 shares of USANA Health Sciences at an average price of $47.79 per share. The transactions were executed in a price range from $47.50 to $48.03, as detailed in the footnotes of the SEC filing. Following this sale, the number of shares owned by Gull Global Ltd in USANA Health Sciences decreased to 7,877,841.
A subsequent sale took place on June 14, where Gull Global Ltd sold an additional 13,496 shares at an average price of $45.03 per share. The prices for these shares ranged from $45.00 to $45.125. After this transaction, Gull Global Ltd's ownership in the company was reduced to 7,864,345 shares.
The filings indicate that the shares sold were owned of record by Gull Global Limited, which is wholly indirectly owned and controlled by Dr. Wentz. Gull Global Limited is directly owned 50% by Viron Company Limited and 50% by Myogen Limited, both of which are Bahamian companies also indirectly owned and controlled by Dr. Wentz.
Investors and followers of USANA Health Sciences Inc will be keeping a close eye on these recent sales, as they represent a notable change in the ownership stake by one of the company's significant shareholders. The reason behind the sales has not been disclosed in the filings.
In other recent news, USANA Health Sciences Inc. released its first-quarter earnings for 2024, reporting a decrease of 5% in consolidated net sales year-over-year, totaling $228 million. The diluted earnings per share (EPS) for the quarter was $0.86, with an operating cash flow of $18 million. DA Davidson subsequently adjusted its outlook on USANA, reducing the price target to $46 from the previous $48, while maintaining a Neutral rating on the shares. This adjustment follows a mixed performance across USANA's market segments, with three of its four segments reporting double-digit declines year-over-year in constant currency terms.
Despite these challenges, the company experienced a successful incentive offering in China that led to a 10% growth in local currency net sales and a 15% increase in active customers. However, USANA anticipates a slowdown in the second quarter following this strong promotional period. The company also plans to introduce market-specific incentives to stimulate sales and customer growth. In light of these recent developments, DA Davidson has revised its second-quarter 2024 EPS estimate for USANA to $0.68, down from $0.75. Despite the top-line uncertainty, USANA's financial health is underscored by its net cash position, which stands at approximately $17 per share.
InvestingPro Insights
Amidst the recent insider transactions at USANA Health Sciences Inc, investors may find value in considering the company's financial health and market performance. USANA, known for its nutritional products, holds an impressive gross profit margin of approximately 81% over the last twelve months as of Q1 2024, signaling strong efficiency in its operations. This is complemented by the company's ability to cover its interest payments with its cash flows, as per InvestingPro Tips.
From a valuation standpoint, USANA is currently trading at an earnings multiple of 13.99, which may attract investors looking for reasonably priced stocks. Additionally, the company's balance sheet reflects a favorable liquidity position, with liquid assets surpassing short-term obligations and more cash than debt, offering a degree of financial stability.
Despite a downturn in revenue growth of -7.56% over the last twelve months as of Q1 2024, which might raise concerns about future performance, USANA's solid fundamentals could provide some confidence to investors. The company's market capitalization stands at $857.09 million, reflecting its size within the industry.
For those interested in exploring further, there are additional InvestingPro Tips available, including insights into analyst revisions and profitability expectations for the year. To delve deeper into USANA's financial metrics and for more expert analysis, visit InvestingPro. Moreover, users can benefit from an extra 10% off a yearly or biyearly Pro and Pro+ subscription by using the coupon code PRONEWS24. There are a total of 9 additional InvestingPro Tips listed on InvestingPro that could further guide investment decisions.
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