ENGLEWOOD, CO—Daniel Moorhead, the Chief Financial Officer of Zynex Inc. (NASDAQ:ZYXI), recently sold a portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Moorhead sold 10,000 shares of Zynex common stock on November 1, 2024. The shares were sold at a weighted average price of $8.59 each, totaling approximately $85,900.
Following the transaction, Moorhead retains ownership of 44,878 shares in the company. The sale was conducted under a Rule 10b5-1 trading plan, which had been adopted on July 31, 2024, allowing for the pre-planned sale of stock.
Zynex Inc., based in Englewood, Colorado, specializes in electromedical and electrotherapeutic apparatus. The company continues to be a significant player in the medical device industry, with its stock actively traded on the NASDAQ exchange.
In other recent news, Zynex, a medical technology company, reported a slight growth in its Q3 earnings, with a net revenue increase to $50 million, and a net income of $2.4 million. Despite a decrease in device revenue, the company saw a rise in supplies revenue and a year-over-year order growth of 13%. The company is also actively diversifying its product offerings, with the FDA clearance for its NiCO pulse oximeter expected soon.
Zynex's CEO, Thomas Sandgaard, projects a total revenue of $200 million for 2024, indicating a 9% increase from 2023. The company is also planning to expand its sales force, adding 10 sales representatives monthly over the next 18 months. Furthermore, Zynex expects Q4 revenues to be at least $53.6 million, a 13% increase year-over-year.
These recent developments suggest that Zynex is committed to delivering shareholder value through reinvestment and capital returns, while also focusing on diversifying its revenue streams and enhancing its product offerings.
InvestingPro Insights
To provide additional context to Daniel Moorhead's recent stock sale, let's examine some key financial metrics and insights for Zynex Inc. (NASDAQ:ZYXI).
According to InvestingPro data, Zynex's market capitalization stands at $256.04 million. The company's P/E ratio is currently 54.16, indicating that investors are willing to pay a premium for the stock relative to its earnings. This high valuation multiple suggests that the market has strong growth expectations for Zynex.
One InvestingPro Tip highlights that management has been aggressively buying back shares. This strategy often signals confidence in the company's future prospects and can potentially increase shareholder value. Additionally, Zynex boasts a high shareholder yield, which could be attractive to investors looking for companies that prioritize returning value to shareholders.
On the financial health front, another InvestingPro Tip notes that Zynex's liquid assets exceed its short-term obligations, indicating a strong liquidity position. This financial stability could provide the company with flexibility to invest in growth opportunities or weather potential market challenges.
It's worth noting that Zynex has been profitable over the last twelve months, with a revenue of $193.66 million and a gross profit margin of 79.69% for the same period. These figures demonstrate the company's ability to generate substantial profits from its sales, which is crucial in the competitive medical device industry.
For investors seeking more comprehensive analysis, InvestingPro offers 12 additional tips for Zynex, providing a deeper understanding of the company's financial position and market performance.
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