Express Scripts Holding Company (NASDAQ:ESRX): What Can Investors Make Of These Developments?

Boston, MA, 03/12/2014 – Express Scripts Holding Company (NASDAQ:ESRX) has been a source of interesting developments in 2014. The company can be seen in the light of weak financial results, insider trading and job cuts, all of which can impact what outcome of your investment in this stock. We take a closer look at this ticker and what the highlights may mean for you the investors, but first, an eye on the previous session.

Shares of Express Scripts Holding Company (NASDAQ:ESRX) were down 0.06 percent to $78.59 Tuesday. It was a day of high activity with fairly large share volume changing hands. Although shares eventually fell in the regular session, the day saw share rising to 52-week high of $79.37.

Now, turning to the highlights of the ticker, we pick one tab at a time.

Insider trading

Insider trading in Express Scripts Holding Company (NASDAQ:ESRX) was disclosed in regulatory filing Tuesday, whereby vice president Keith J. Ebling sold several shares on open market. A bout 25,720 shares were sold by the executive at an average price of $78.69, leading to total proceeds of roughly $2 million. The VP now directly owns 22,222 shares of Express Scripts Holding Company (NASDAQ:ESRX) whose estimated value is $1.7 million.

Weak financial results

Express Scripts Holding Company (NASDAQ:ESRX) announced its fourth quarter results last month were net income was $506 million or $0.63 per share. That compared with $511 million or $0.61 per share noted in the corresponding quarter one year ago.

Job cuts and cost reduction

Like most companies struggling with cost reduction, Express Scripts Holding Company (NASDAQ:ESRX) has been able to do away with about 100 positions within its ranks this year. The layoffs were mainly in the information technology areas and were done across various units. Last year the company trimmed about 425 jobs and this year could see more positions eliminated as rising operating costs become a major issue and impact on earnings.

Bottom line

Express Scripts Holding Company (NASDAQ:ESRX) may not be in a perfect position already, but a lot of good things are already happen and this is good news for the shareholders.

Like it? Share it!

Leave A Response