ENGLEWOOD, CO—Thomas Sandgaard, the President, CEO, and Chairman of Zynex Inc. (NASDAQ:ZYXI), recently executed a series of stock sales totaling $89,280. The transactions, disclosed in a recent SEC filing, were conducted under a pre-established Rule 10b5-1 trading plan.
The sales occurred over several days, with Sandgaard selling 2,000 shares each day from November 7 to November 13, 2024. The prices per share ranged from $8.37 to $9.24. Following these transactions, Sandgaard continues to hold a significant stake in the company, with 14,605,662 shares remaining.
These sales are part of routine trading activities and were carried out according to the guidelines of the trading plan set on July 31, 2024. Trading plans like these are often used by executives to manage their stock holdings while adhering to insider trading regulations.
In other recent news, Zynex, Inc. reported a slight rise in its Q3 2024 net revenue to $50 million during its earnings conference call. Despite a decrease in net income to $2.4 million, or $0.07 per diluted share, the company saw a year-over-year order growth of 13%. These developments come along with an increase in supplies revenue and a plan to diversify product offerings, which includes the expected FDA clearance for the NiCO pulse oximeter.
Zynex's CEO, Thomas Sandgaard, projects a total revenue of $200 million for 2024, indicating a 9% increase from the previous year. The company also anticipates Q4 revenues to be at least $53.6 million, a 13% year-over-year increase. In addition to these financial updates, Zynex has plans to expand its sales force by adding 10 sales representatives monthly over the next 18 months.
These recent developments reflect Zynex's commitment to shareholder value through reinvestment and capital returns. It's worth noting that the company is undergoing a strategic review and has received letters of intent. In the meantime, Zynex remains focused on enhancing its product offerings and diversifying its revenue streams.
InvestingPro Insights
While Thomas Sandgaard's recent stock sales may raise eyebrows, it's important to consider the broader financial picture of Zynex Inc. (NASDAQ:ZYXI). According to InvestingPro data, the company's market capitalization stands at $258.9 million, reflecting its position in the medical devices industry.
Despite the CEO's stock sales, InvestingPro Tips highlight that management has been aggressively buying back shares, indicating confidence in the company's future. This buyback activity, coupled with a high shareholder yield, suggests a commitment to returning value to investors.
However, investors should note that ZYXI is trading at a high P/E ratio of 54.7, which may indicate an elevated valuation compared to peers. This high multiple is consistent across other metrics, with the company trading at high EBIT and EBITDA valuation multiples as well.
On the financial health front, Zynex's liquid assets exceed short-term obligations, and the company operates with a moderate level of debt. This solid financial position is complemented by the fact that Zynex has been profitable over the last twelve months, with analysts predicting continued profitability this year.
It's worth noting that while the stock has taken a significant hit over the last week, with a 1-week price total return of -11.73%, the company has shown resilience with a high return over the last decade. This long-term performance may provide some context to the recent insider selling activity.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for ZYXI, providing a deeper dive into the company's financial health and market position. These insights can be particularly valuable given the recent executive stock transactions and the company's current valuation metrics.
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