Daniel J. Moorhead, the Chief Financial Officer of Zynex Inc (NASDAQ:ZYXI), has sold 15,000 shares of the company's common stock on July 30, 2024, for a total value of $123,600. The transaction was executed at an average price of $8.24 per share, according to the latest SEC filing.
The sale was part of a series of open market transactions, and the average sales price of $8.24 represents the weighted average for the shares sold. The company has made it clear that, if requested, they can provide detailed information regarding the number of shares sold at each separate price.
On the same day, Moorhead also received a restricted stock award under Zynex's 2017 Stock Incentive Plan, consisting of 2,760 shares that will vest quarterly over a two-year period starting from one quarter after the grant date. These shares are part of a long-term incentive plan and are not immediately available for sale, reflecting a commitment to the company's future performance.
Following these transactions, Moorhead's direct ownership in Zynex Inc stands at 46,571 shares. The sale has adjusted his holdings but still leaves him with a significant stake in the company, aligning his interests with those of other shareholders.
Investors often monitor insider transactions such as these for insights into management's perspective on the company's valuation and prospects. However, it's important to consider that trading by insiders can be subject to various motivations and may not always reflect their outlook on the company's future performance.
Zynex Inc, based in Englewood, Colorado, specializes in the manufacture and sale of non-invasive medical devices for pain management, stroke rehabilitation, cardiac monitoring, and neurological diagnostics.
In other recent news, Zynex Inc., a medical technology company, has seen notable developments. Following the release of its second quarter financial results for 2024, H.C. Wainwright adjusted its 12-month price target for Zynex to $16.00, down from $21.00, while maintaining a Buy rating. The company reported a total revenue of $49.9 million, an 11% increase year-over-year, but fell short of the analyst's expectations of $51.8 million. Net income was also lower than anticipated at $1.2 million.
Zynex highlighted a 20% year-over-year increase in orders during the second quarter, attributing the revenue growth shortfall to a strategic reduction in sales representatives and a shift in product mix. Looking ahead, Zynex management has set a minimum revenue target of $50.0 million for the third quarter of 2024 and expects diluted earnings per share (EPS) to be at least $0.05. The full-year revenue guidance for 2024 has been revised to a minimum of $200 million, down from the previous forecast of $227 million, with diluted EPS expected to be at least $0.20 per share. H.C. Wainwright has estimated a 20% top-line growth for 2025 in line with these updates.
InvestingPro Insights
Amidst the recent insider transactions at Zynex Inc, the company's financial metrics and market performance provide additional context for investors. The company's market capitalization stands at $260.61 million, reflecting its current valuation in the market. Despite a challenging week with a significant price drop of 19.57%, Zynex's management has shown confidence in the company by aggressively buying back shares, an InvestingPro Tip that often indicates a belief in the company's undervalued status or a commitment to boosting shareholder value.
Further analysis from InvestingPro reveals that Zynex is trading at a high earnings multiple, with a P/E ratio of 45.36 and an adjusted P/E ratio for the last twelve months as of Q2 2024 at 42.78. Additionally, the Price / Book ratio for the same period is 8.07, which is considered high, suggesting that the stock may be valued richly compared to the company's book value.
On the upside, Zynex has demonstrated a solid gross profit margin of 80.0% over the last twelve months as of Q2 2024, which may interest investors looking for companies with strong profitability metrics. Moreover, analysts predict that Zynex will be profitable this year, and the company has been profitable over the last twelve months, as highlighted by two more InvestingPro Tips.
To gain further insights and access additional InvestingPro Tips, including details on Zynex's shareholder yield and liquidity position, investors can visit https://www.investing.com/pro/ZYXI. There are 11 additional InvestingPro Tips available to help make more informed investment decisions. For those interested in a deeper dive into Zynex's financials and market performance, use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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