Ann F. Millner, a director at Merit Medical Systems Inc. (NASDAQ:MMSI), sold 12,500 shares of the company's common stock on November 15, according to a recent SEC filing. The shares were sold at a weighted average price of $101.55, generating a total of approximately $1.27 million.
The transaction was part of a Rule 10b5-1 trading plan adopted by Millner earlier this year. Following the sale, Millner's direct ownership in the company stands at 32,391 shares.
Additionally, Millner exercised non-qualified stock options to acquire 12,500 shares at a price of $50.5 each on the same day.
In other recent news, Merit Medical (TASE:PMCN) Systems Inc. reported strong third-quarter results, with total revenue reaching $339.8 million, a 7.8% increase from the previous year. The company's non-GAAP operating profit also saw a 19% rise, achieving a non-GAAP operating margin of 19.2%. In addition to this, Merit Medical reported a significant increase in free cash flow, which amounted to $38 million for the quarter and over $120 million for the year-to-date, a 116% increase year-over-year.
The company has also acquired Cook Medical's lead management portfolio, which is expected to generate significant revenue in the coming years. This acquisition is projected to contribute $4 million to $6 million in revenue. Furthermore, Merit Medical raised its free cash flow expectation for 2024 to approximately $150 million.
In analyst notes, the company's GAAP net revenue growth forecast for 2024 is between 6.9% and 7.6%, with specific segment growth expectations of 5% to 6% for Cardiovascular and 49% to 52% for Endoscopy. The company's non-GAAP diluted EPS is expected to range from $3.33 to $3.38, a 17% to 19% increase. These are the recent developments in Merit Medical's financial performance and strategic direction.
InvestingPro Insights
Merit Medical Systems Inc. (NASDAQ:MMSI) has been experiencing strong financial performance, as evidenced by its recent stock price movements and financial metrics. According to InvestingPro data, the company's stock has shown impressive returns, with a 42.68% price total return over the past year and a 34.06% return year-to-date. This performance aligns with the recent insider transaction, as director Ann F. Millner sold shares at a price near the company's 52-week high.
InvestingPro Tips highlight that Merit Medical Systems is expected to see net income growth this year, and analysts predict the company will remain profitable. This positive outlook is supported by the company's solid financial position, with liquid assets exceeding short-term obligations and a moderate level of debt.
However, investors should note that MMSI is trading at a high P/E ratio of 50.17, which is relatively high compared to its near-term earnings growth. This valuation metric suggests that the stock may be priced at a premium, which could explain why insiders like Millner might choose to sell some of their holdings.
For those interested in a more comprehensive analysis, InvestingPro offers 14 additional tips for Merit Medical Systems, providing a deeper understanding of the company's financial health and market position.
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