Inari Medical, Inc. (NASDAQ:NARI) Director William Hoffman has sold a significant portion of his holdings in the company, according to a recent filing with the Securities and Exchange Commission. On June 17, 2024, Hoffman executed multiple transactions selling a total of 40,000 shares of Inari Medical common stock, netting over $1.7 million.
The sales occurred in a series of trades with prices ranging from $43.31 to $45.85 per share. Specifically, Hoffman sold 31,600 shares at an average price of $43.31, 6,175 shares at an average price of $44.16, 2,125 shares at an average price of $45.04, and a smaller batch of 100 shares at $45.85 each. These transactions were part of a pre-arranged 10b5-1 trading plan, which allows company insiders to sell stocks at predetermined times to avoid accusations of insider trading.
Following these transactions, Hoffman still owns a substantial amount of Inari Medical stock, with 825,359 shares remaining in his possession. The plan under which these sales were made was adopted on December 14, 2023, indicating a structured approach to the selling of his shares.
Investors often monitor insider sales for insights into a company’s health and the confidence that executives and directors have in their firm's future prospects. Inari Medical specializes in the manufacture of medical instruments and apparatus, a sector that is closely watched for its growth potential and innovation.
For those interested in following the company's stock activity, Inari Medical trades on the NASDAQ under the ticker symbol NARI. The company, headquartered in Irvine, California, has been a key player in the medical devices industry, with a focus on developing products for patients suffering from venous diseases.
The SEC filing provides transparency into the actions of Inari Medical's directors and offers investors a detailed look at significant insider transactions.
In other recent news, Inari Medical reported robust Q1 earnings, with revenue reaching $143.2 million, surpassing both the Street's projection and analysts' estimates. This growth was attributed to multiple factors, including a significant contribution from the U.S. core venous thromboembolism (VTE) treatments. Notably, Inari Medical raised its full-year revenue guidance to between $592.5 million and $602.5 million, indicating a 20-22% year-over-year increase.
Despite stronger than expected performance, Piper Sandler, Canaccord Genuity (TSX:CF), and Needham adjusted their price targets for Inari Medical, while maintaining a neutral to positive stance. They await further clarity on the U.S. core VTE franchise and other key business segments before adopting a more positive stance.
Inari Medical's management has also outlined its growth drivers, including VTE treatments, emerging therapies, and international expansion. They have confirmed the expectation to achieve operating profitability in the first half of 2025. These are recent developments that investors should keep an eye on.
InvestingPro Insights
As Inari Medical, Inc. (NASDAQ:NARI) continues to navigate the dynamic medical devices market, recent data from InvestingPro provides a snapshot of the company's financial health and market performance. With a market capitalization of $2.68 billion, Inari Medical is a significant player in its industry. Despite not being profitable over the last twelve months, the company boasts an impressive gross profit margin of 87.67%, reflecting strong operational efficiency in generating revenue from its medical instruments and apparatus.
Analyzing the company's financials, Inari Medical's price-to-book (P/B) ratio stands at 6.0, suggesting that the stock is trading at a premium relative to its book value, potentially indicating high investor expectations for future growth. This aligns with the company's robust revenue growth of 26.1% over the last twelve months as of Q1 2024, showcasing its ability to expand its sales in the competitive medical devices sector.
InvestingPro Tips highlight that Inari Medical operates with a moderate level of debt and that its liquid assets exceed short-term obligations, suggesting a stable financial position for the near term. However, analysts are cautious, as they do not anticipate the company will be profitable this year and expect net income to drop. Investors may find these insights particularly valuable when considering the recent insider selling activity by Director William Hoffman.
For those looking to delve deeper into Inari Medical's prospects, InvestingPro offers additional tips that can guide investment decisions. With the use of coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking further analysis and data points that can provide a more comprehensive understanding of the company's outlook. There are 7 more InvestingPro Tips available for Inari Medical, which can be accessed through the platform's specialized service.
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