ENGLEWOOD, Colo.—Thomas Sandgaard, the President, CEO, and Chairman of Zynex Inc. (NASDAQ:ZYXI), recently sold shares of the company valued at approximately $52,740, according to a filing with the Securities and Exchange Commission. The transactions, executed under a Rule 10b5-1 trading plan, occurred over three consecutive days.
On October 30, Sandgaard sold 2,000 shares at an average price of $8.92 each. The following day, October 31, he sold another 2,000 shares at an average price of $8.82 per share. The final transaction took place on November 1, with 2,000 shares sold at a weighted average price of $8.63.
Following these transactions, Sandgaard's direct ownership in Zynex stands at 14,621,350 shares. These sales are part of a pre-arranged trading plan, which allows insiders to sell a predetermined number of shares at regular intervals, providing a measure of predictability and transparency to the market.
In other recent news, medical technology company Zynex reported a slight increase in its Q3 net revenue to $50 million and a net income of $2.4 million. Despite a decrease in device revenue, the company experienced a 13% year-over-year order growth and anticipates a total revenue of $200 million for 2024. Zynex also announced its plans for future expansion, including a strategy to add 10 sales representatives monthly over the next 18 months. In addition, the company is expecting FDA clearance for its NiCO pulse oximeter, which is part of its efforts to diversify product offerings. However, Q3 also saw a decrease in net income compared to the previous year and a fall in adjusted EBITDA to $5.1 million. Despite these challenges, Zynex remains committed to delivering shareholder value and is optimistic about its growth, projecting a 9% increase in total revenue for 2024. These developments are part of Zynex's recent strategic moves in the market.
InvestingPro Insights
While Thomas Sandgaard's recent share sales might raise eyebrows, it's important to consider the broader context of Zynex Inc.'s financial health and market position. According to InvestingPro data, Zynex boasts a market capitalization of $278.65 million, reflecting its significant presence in the medical technology sector.
One of the key InvestingPro Tips highlights that management has been aggressively buying back shares, which could potentially offset the impact of insider sales and signal confidence in the company's future prospects. This strategy aligns with another InvestingPro Tip indicating a high shareholder yield, suggesting that the company is returning value to its investors through various means.
However, investors should note that Zynex is trading at a relatively high P/E ratio of 57.58, which may indicate that the stock is priced at a premium compared to its earnings. This valuation metric is particularly relevant in light of the recent insider sales and could be a factor for investors to consider when evaluating the stock.
It's worth mentioning that InvestingPro offers 12 additional tips for Zynex, providing a more comprehensive analysis for those seeking deeper insights into the company's financial position and market outlook.
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