Inari Medical, Inc. (NASDAQ:NARI) Chief Financial Officer Mitch C. Hill has recently engaged in significant trading activity involving the company's stock, according to the latest SEC filings. On June 12, 2024, Hill sold a total of 5,000 shares of Inari Medical's common stock, at prices ranging from $47.15 to $48.04, netting a total of $237,976 from the sales.
The transactions were carried out under a prearranged 10b5-1 trading plan, which allows company insiders to set up a trading schedule in advance to avoid any accusations of trading on insider information. The plan had been adopted by Hill on November 9, 2023.
The SEC filing revealed that the sales were executed in multiple trades. The first set of 2,498 shares was sold at a weighted average price of $47.15, while the second set of 2,502 shares fetched a slightly higher weighted average price of $48.04. Detailed information on the exact number of shares sold at each price point within the ranges can be provided upon request to the SEC staff, the issuer, or a security holder of the issuer.
Following the sales, Hill still holds a significant amount of Inari Medical's common stock, with 181,294 shares remaining in his direct ownership. Additionally, the SEC filing disclosed that Hill's spouse indirectly owns 1,600 shares of the company's common stock.
On the same day, Hill also executed a transaction involving stock options, where he acquired 5,000 shares at a conversion price of $0.457 per share. These options had vested in increments since April 30, 2020, with the final shares vesting in equal monthly installments over a 36-month period.
Inari Medical, based in Irvine, California, specializes in the development of medical devices for the treatment of venous diseases. As of the date of the filing, the company's stock is publicly traded on the NASDAQ exchange under the ticker symbol NARI.
Investors and followers of Inari Medical will likely keep a close watch on insider trading patterns, as they can provide insights into the executives' perspectives on the company's current valuation and future prospects.
In other recent news, Inari Medical Inc. showcased a strong start in the first quarter of 2024, with a reported revenue of $143.2 million, surpassing estimates from Piper Sandler, Canaccord Genuity, and Needham. This represents a 23% increase year over year, primarily driven by the company's U.S. core venous thromboembolism (VTE) treatments. Furthermore, the company raised its full-year revenue guidance to between $592.5 million and $602.5 million, indicating a 20-22% year-over-year increase.
However, Piper Sandler, Canaccord Genuity, and Needham all adjusted their price targets for Inari Medical, citing a need for further clarity on the U.S. VTE franchise and other factors. Despite the adjustments, Canaccord Genuity and Needham maintained their Buy ratings on the stock, expressing confidence in the company's growth prospects.
In addition, Inari Medical has plans for commercial expansion and deeper market penetration, with a focus on developing its product portfolio with new offerings such as VenaCor, Artix, and LimFlow. The company also plans to expand its operations outside the United States, with particular emphasis on China and Japan. Despite a GAAP operating loss of $17.2 million and a net loss of $24.2 million in Q1, Inari remains optimistic about its market position and future profitability, expected to be achieved in the first half of 2025.
InvestingPro Insights
As Inari Medical, Inc. (NASDAQ:NARI) continues to navigate the medical device market, recent financial data from InvestingPro provides additional context to the insider trading activity of CFO Mitch C. Hill. With a market capitalization of $2.64 billion, Inari Medical stands out with impressive gross profit margins of 87.67% for the last twelve months as of Q1 2024. This figure underscores the company's ability to maintain profitability in the production of its medical devices, despite challenges in the healthcare sector.
InvestingPro Tips suggest that while Inari Medical operates with a moderate level of debt, the company's liquid assets exceed its short-term obligations, indicating a healthy balance sheet. However, it's important to note that analysts do not anticipate the company will be profitable this year, and net income is expected to drop. This projection is reflected in the company's high Price / Book multiple of 5.89, suggesting the stock may be trading at a premium relative to its book value.
For investors interested in a deeper analysis, there are additional InvestingPro Tips available for Inari Medical, which can be accessed at Investing.com. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking further insights that could guide investment decisions.
With the next earnings date scheduled for July 31, 2024, stakeholders will be closely monitoring the company's performance metrics and insider transactions to gauge the direction Inari Medical is heading.
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