In a recent transaction, Mitch C. Hill, the Chief Financial Officer of Inari Medical, Inc. (NASDAQ:NARI), sold 6,000 shares of the company's stock. The shares were sold at a weighted average price ranging from $40.54 to $41.53, with the reported average being $40.96 per share, amounting to a total value of $245,760.
This sale took place under a Rule 10b5-1 trading plan, which was previously adopted by Hill on November 9, 2023. Such plans allow company insiders to set up predetermined trading arrangements for selling stocks at a specified time, providing a defense against claims of insider trading.
On the same day, Hill also acquired 6,000 shares of Inari Medical's common stock through the exercise of options at a strikingly low price of $0.457 per share, totaling $2,742. Following these transactions, Hill's direct holdings in the company adjusted to 181,294 shares of common stock.
Notably, the transactions occurred on April 12, 2024, and were disclosed to the U.S. Securities and Exchange Commission in a Form 4 filing on April 16, 2024. The form also mentioned that Hill's spouse indirectly holds 1,600 shares of Inari Medical.
The options exercised by Hill were part of a vesting schedule where 25% vested on April 30, 2020, with the remainder vesting in 36 equal monthly installments thereafter. These options are set to expire on April 23, 2029.
Investors and market analysts often scrutinize insider transactions as they may provide insights into the company's performance or insider perspectives on the stock's value. However, it's important to note that insider transactions can be subject to various motivations and may not always signal the company's future trajectory.
InvestingPro Insights
Inari Medical's recent insider transactions coincide with a period of notable financial metrics for the company. The Chief Financial Officer's stock sale and option exercise provide an opportunity to examine Inari Medical's current market standing through the lens of InvestingPro data.
As of the last twelve months ending Q4 2023, Inari Medical boasts a robust gross profit margin of 88.03%, indicating efficient cost management relative to its revenue of $493.63 million. Despite this strong margin, analysts have expressed concerns, as reflected in two analysts revising their earnings downwards for the upcoming period, and expectations of a net income drop this year. This might suggest that while the company is currently generating a healthy profit on each dollar of sales, future profitability could be challenged.
InvestingPro Tips highlight that Inari Medical is trading near its 52-week low, with its share price at $39.49, which is 59.49% of its 52-week high. This could represent a potential entry point for investors, considering the company's strong gross profit margins and the fact that its liquid assets exceed short-term obligations, suggesting financial stability in the near term. However, with the company not anticipated to be profitable this year and trading at a high EBITDA valuation multiple, investors should weigh these factors carefully.
For those seeking to delve deeper into Inari Medical's financial health and future prospects, InvestingPro offers additional insights. There are 9 more InvestingPro Tips available, which can be accessed at: https://www.investing.com/pro/NARI. Interested readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, enriching their investment research with valuable, real-time data and expert analysis.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.