Randy E. Dobbs, a director at Viemed Healthcare, Inc. (NASDAQ:VMD), recently executed a significant transaction involving the company's common shares. According to a recent SEC filing, Dobbs sold 36,261 shares on November 13, 2024, at an average price of $9.28 per share, resulting in a total transaction value of $336,502.
Prior to the sale, Dobbs exercised stock options to acquire the same number of shares at a price of $1.81 per share. Following these transactions, Dobbs holds 107,706 shares directly. The options exercised were granted on January 4, 2018, and vested over three years.
In other recent news, Viemed Healthcare reported a record-breaking third quarter in 2024, with net revenue hitting $58 million, surpassing their own projections. This growth has been tied to organic expansion and strategic mergers and acquisitions. The company's active vent patient count increased by 4.3%, and sleep therapy patient count rose by 11% sequentially. Viemed has invested $11 million in CapEx, primarily for respiratory equipment, with a net cash CapEx of around $5 million.
Looking ahead, fourth-quarter net revenue is expected to be between $59.7 million and $60.9 million. However, Viemed faces challenges in replacing a significant fleet of recalled ventilators, which may impact CapEx into the next year. Despite these challenges, the company remains optimistic about 2025, with a strong pipeline for potential M&A.
During the earnings call, COO Todd Zehnder indicated a robust pipeline and openness to deals outside the respiratory space. Additionally, the company is working with Philips and the FDA for the remediation of recalled ventilators, with a full replacement timeline extending into next year. These recent developments highlight Viemed's commitment to growth and operational efficiency.
InvestingPro Insights
Following the recent insider transaction by Randy E. Dobbs, it's worth examining some key financial metrics and insights for Viemed Healthcare, Inc. (NASDAQ:VMD) provided by InvestingPro.
As of the latest data, Viemed Healthcare boasts a market capitalization of $356.66 million. The company's P/E ratio stands at 34.01, which aligns with an InvestingPro Tip indicating that VMD is "trading at a high earnings multiple." This valuation metric suggests investors are pricing in expectations for future growth.
Speaking of growth, Viemed has demonstrated strong financial performance, with revenue growth of 26.22% over the last twelve months as of Q3 2024. This robust top-line expansion is complemented by a healthy gross profit margin of 60.28%, indicating efficient cost management.
Investors should note that Viemed has shown impressive stock performance, with a 32.58% price total return over the past three months. This aligns with another InvestingPro Tip highlighting the company's "strong return over the last three months." The stock's momentum is further evidenced by its current price being 87.64% of its 52-week high.
For those interested in a more comprehensive analysis, InvestingPro offers 7 additional tips for Viemed Healthcare, providing a deeper understanding of the company's financial health and market position.
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