French Glendon E. III, a director at Pulmonx Corp (NASDAQ:LUNG), recently sold shares of the company's stock, according to a filing with the Securities and Exchange Commission. The timing is notable as the stock has declined 9.5% over the past week, according to InvestingPro data. The transactions, which took place on January 16 and January 17, involved the sale of a total of 4,547 shares at prices ranging from $6.50 to $6.53 per share. The total value of these sales amounted to $29,625. Following these transactions, French continues to hold 1,067,427 shares of Pulmonx. The sales were conducted under a Rule 10b5-1 trading plan, which was adopted on June 10, 2024. Despite recent price weakness, InvestingPro analysis indicates the stock is currently undervalued, with strong financial health metrics including a 7.7x current ratio and more cash than debt on its balance sheet. Get access to the full Pulmonx Pro Research Report and 6 additional ProTips with an InvestingPro subscription.
In other recent news, Pulmonx Corporation has been the subject of several recent developments. The company's third-quarter earnings report showed a solid 15% increase in worldwide sales, totaling $20.4 million, with the U.S. market contributing a 17% rise in revenue. This growth was accompanied by a net loss of $14.1 million for the quarter, though Pulmonx managed to decrease operating expenses by approximately $5 million.
Citi has downgraded Pulmonx's stock to a "Neutral" rating, citing concerns about the challenges facing the company in stimulating its stock price movement. Despite this, Pulmonx has maintained strong liquidity and achieved impressive revenue growth of 22.3% in the last twelve months, although it remains unprofitable.
Looking ahead, Citi forecasts a slowdown in the addition of new U.S. centers in 2025, but expects this to be somewhat balanced by an increase in utilization rates. The introduction of the Zephyr valve in Japan and the commercialization of Aeriseal in 2026 are anticipated to support the company's growth prospects. Despite these developments, investors are reminded to keep an eye on Pulmonx's financial health and future performance.
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