Inari Medical, Inc. (NASDAQ:NARI) has reported a notable transaction involving its Chief Medical Officer, Thomas Tu. According to the latest regulatory filings, Tu has sold a total of $910,086 worth of company shares. The transactions took place on July 15, 2024, and were executed within a price range of $55.08 to $55.10.
The sales were conducted in multiple trades, with the prices of individual transactions varying slightly. The reported prices represent the weighted average of these trades. Specifically, Tu sold 9,920 shares at an average price of $55.09, followed by two separate sales of 3,300 shares each, at average prices of $55.08 and $55.10 respectively.
Following these transactions, Tu's holdings in Inari Medical have decreased, yet he still retains a substantial stake in the company with 313,257 shares remaining in his possession. It is worth noting that the sales were pre-arranged under a Rule 10b5-1 trading plan, which Tu had adopted on November 11, 2023. These plans are commonly used by company insiders to sell shares over a predetermined period to avoid accusations of trading on non-public, material information.
Investors often monitor insider transactions as they can provide insights into executives' perspectives on their company's current valuation and future prospects. Although the reasons behind Tu's decision to sell shares are not disclosed, such transactions are routine and can be motivated by a variety of personal financial considerations.
Inari Medical, Inc., headquartered in Irvine, California, is a medical device company specializing in the development of treatments for patients suffering from venous diseases. The company remains at the forefront of medical innovation, providing solutions that address significant needs in the healthcare sector.
Shareholders and potential investors can access full details of the transactions upon request, as the executive has committed to providing all necessary information regarding the specific numbers of shares and the prices at which the sales were carried out.
In other recent news, Inari Medical has been the subject of several analyst adjustments following its first-quarter earnings report. The company reported a 23% year-over-year increase in revenue, reaching $143.2 million, primarily due to U.S. core venous thromboembolism (VTE) treatments. This led Inari Medical to raise its full-year revenue guidance to between $592.5 million and $602.5 million, indicating a 20-22% year-over-year increase. However, the company reported a GAAP operating loss of $17.2 million due to several deal-related expenses.
In response to these developments, Truist Securities raised the price target for Inari Medical to $60, while Baird increased its target to $65, both maintaining their previous ratings on the stock. On the other hand, Piper Sandler and Canaccord Genuity reduced their price targets to $50 and $55 respectively, but maintained their neutral to positive stances. Needham also lowered its target to $57, though it retained a Buy rating.
These adjustments reflect recent developments, including Inari Medical's plans for international expansion into markets such as China and Japan, as well as the growth potential of its VTE treatments and emerging therapies.
InvestingPro Insights
Recent insider transactions by Inari Medical's Chief Medical Officer have caught the eye of shareholders, as understanding the financial health and market position of the company can provide context to these sales. Here are some highlights from InvestingPro that shed light on the company's current status:
Inari Medical has demonstrated an impressive gross profit margin, with the latest data indicating a margin of 87.67% for the last twelve months as of Q1 2024. This robust margin underscores the company's ability to manage its cost of goods sold effectively and maintain profitability on its products and services.
Despite strong returns in the short term, with a 20.97% increase over the last month and a 40.15% increase over the last three months, the company's net income is expected to drop this year. Analysts do not anticipate Inari Medical will be profitable for the year, which is reflected in a negative P/E ratio of -140.76. Additionally, the company is trading at a high Price/Book multiple of 7.54, suggesting a premium valuation relative to its book value.
InvestingPro Tips also indicate that while Inari Medical operates with a moderate level of debt, its liquid assets exceed short-term obligations, suggesting a solid financial position for meeting its immediate liabilities. Moreover, the company does not pay dividends to shareholders, which could be a consideration for income-focused investors.
For those looking to delve deeper into Inari Medical's financials and market performance, InvestingPro offers a comprehensive suite of analytics and insights. There are 7 additional InvestingPro Tips available for Inari Medical, which can be accessed through the dedicated page: https://www.investing.com/pro/NARI. Readers interested in leveraging these insights can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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