IRVINE, Calif.—William Hoffman, a director at Inari Medical, Inc. (NASDAQ:NARI), recently sold a significant portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Hoffman sold a total of 40,000 shares of common stock in two separate transactions on October 16.
The shares were sold at prices ranging from $44.78 to $45.57, resulting in a total transaction value of approximately $1.8 million. Following these sales, Hoffman retains ownership of 601,233 shares in Inari Medical. The transactions were executed under a pre-established Rule 10b5-1 trading plan, which Hoffman adopted on December 14, 2023.
In other recent news, Inari Medical has seen a flurry of analyst activity. Baird increased the stock price target for Inari Medical to $66 from $63, anticipating a strong third-quarter performance. However, short selling pressure could limit expansion in the stock's multiple. The company's second-quarter earnings report highlighted a modest revenue beat and a raised forecast, reflecting a 17% growth in its core US Venous Thromboembolism business, despite a larger than expected operational loss. Furthermore, Kevin Strange is set to replace Mitch Hill in an unexpected Chief Financial Officer transition.
In terms of analyst ratings, Needham maintained a Hold rating on Inari Medical, awaiting the results of the PEERLESS study comparing Inari's FlowTriever system to traditional treatments for pulmonary embolism. Stifel initiated coverage on Inari Medical with a Hold rating, acknowledging potential market growth against competitive and regulatory challenges. Deutsche Bank reiterated a Buy rating, expressing confidence in Inari Medical's growth potential despite recent safety concerns.
Truist Securities adjusted its price target for Inari Medical, decreasing it to $55 from the previous $60, while maintaining a Hold rating. Piper Sandler reaffirmed a Neutral rating, following a recent animal study investigating the company's FlowSaver technology. These are among the recent developments for Inari Medical.
InvestingPro Insights
In light of William Hoffman's recent stock sale, it's worth examining some key financial metrics and insights for Inari Medical (NASDAQ:NARI). According to InvestingPro data, the company currently has a market capitalization of $2.59 billion, reflecting its position in the medical devices sector.
Inari Medical has demonstrated strong revenue growth, with a 24.67% increase in the last twelve months as of Q2 2024, reaching $547.47 million. This growth trajectory is complemented by an impressive gross profit margin of 87.15% for the same period, underscoring the company's efficiency in production and pricing power.
However, investors should note that despite robust top-line performance, Inari Medical is currently not profitable. The company reported an operating income margin of -3.76% and a negative return on assets of -9.53% for the last twelve months as of Q2 2024. This aligns with an InvestingPro Tip indicating that analysts do not anticipate the company will be profitable this year.
Another InvestingPro Tip highlights that Inari Medical is trading at a high Price / Book multiple, which is confirmed by the Price / Book ratio of 6.08. This suggests that investors are placing a premium on the company's future growth prospects despite current profitability challenges.
For those seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. Currently, there are 5 more InvestingPro Tips available for Inari Medical, providing a deeper understanding of the company's financial health and market position.
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