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Zynex Inc. (NASDAQ:ZYXI), a medical technology company specializing in pain management and rehabilitation, saw its stock tumble to a 52-week low of $2.34, reflecting a stark downturn in investor sentiment. With a market capitalization of $75.3 million and healthy gross margins of nearly 80%, the company maintains strong fundamentals despite the price decline. According to InvestingPro analysis, the stock’s RSI indicates oversold territory, while management has been actively buying back shares. Over the past year, the company’s shares have experienced a precipitous decline, with the 1-year change data showing a staggering drop of -80.44%. Despite the current price being below InvestingPro’s Fair Value estimate, analyst targets range from $5.50 to $24.50, suggesting potential upside. This significant reduction in stock value has raised concerns among shareholders and market analysts alike, as Zynex grapples with the broader economic pressures and sector-specific headwinds that have contributed to its underwhelming market performance. Discover 13 additional exclusive insights and comprehensive analysis available on InvestingPro.
In other recent news, Zynex Inc. reported a net loss of $0.6 million for the fourth quarter of 2024, with revenue totaling $46.0 million, falling short of the expected $53.7 million. The revenue shortfall was attributed to delayed payments from Tricare, which accounts for about 20-25% of Zynex’s annual revenue. Despite this setback, Zynex’s full-year 2024 results showed a 4.4% increase in total revenue, reaching $192.4 million, with a net income of $3.0 million. In response to these challenges, Zynex is reducing its workforce by 15%, aiming to save approximately $35 million annually.
Additionally, Zynex appointed CBIZ (NYSE:CBZ) CPAs P.C. as its new independent registered accounting firm after Marcum LLP resigned. The change follows CBIZ’s acquisition of Marcum’s attest business and comes as Zynex continues to address internal control processes. Analyst firms have also adjusted their outlooks on Zynex. H.C. Wainwright decreased the stock’s price target from $17.00 to $15.00 while maintaining a Buy rating, and RBC Capital Markets downgraded the stock from Outperform to Sector Perform, reducing its price target to $5.50 due to operational concerns.
Zynex’s management anticipates a minimum revenue of $30 million for the first quarter of 2025, with a projected net loss. The company is also expanding payor coverage to mitigate near-term sales impacts and hopes to resolve the Tricare payment suspension soon. Analysts have expressed concerns about the potential risks associated with the Tricare issue, highlighting the importance of Zynex’s ability to manage payer relationships effectively.
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