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ENGLEWOOD, CO—Thomas Sandgaard, the CEO, President, and Chairman of Zynex Inc. (NASDAQ:ZYXI), recently sold 2,000 shares of the company's common stock. The transaction, executed on November 14, 2024, was conducted at a weighted average price of $8.09 per share, totaling approximately $16,180.
This sale was carried out under a pre-established Rule 10b5-1 trading plan, which Sandgaard adopted on July 31, 2024. Following the transaction, Sandgaard retains direct ownership of 14,603,662 shares of Zynex Inc.
Zynex Inc., headquartered in Englewood, Colorado, specializes in the production of electromedical and electrotherapeutic apparatus.
In other recent news, medical technology company Zynex reported a slight increase in Q3 net revenue to $50 million, with a net income of $2.4 million. Despite a decrease in device revenue, supplies revenue rose, contributing to a year-over-year order growth of 13%. The company is actively diversifying its product offerings, with the anticipated FDA clearance for its NiCO pulse oximeter. CEO Thomas Sandgaard projects a total revenue of $200 million for 2024, a 9% increase from 2023. In addition, Zynex plans to expand its sales force by adding 10 sales representatives monthly over the next 18 months. These recent developments underscore Zynex's commitment to delivering shareholder value through reinvestment and capital returns. However, it's important to note that net income for Q3 2024 has decreased from the same period in 2023, and general and administrative expenses rose to $15.3 million.
InvestingPro Insights
While Thomas Sandgaard's recent stock sale might raise eyebrows, it's crucial to consider the broader financial picture of Zynex Inc. (NASDAQ:ZYXI). According to InvestingPro data, the company boasts a market capitalization of $248.71 million and has demonstrated profitability over the last twelve months. This aligns with an InvestingPro Tip indicating that analysts predict the company will remain profitable this year.
Despite the CEO's sale, another InvestingPro Tip reveals that management has been aggressively buying back shares, suggesting confidence in the company's future prospects. This strategy, combined with the company's high shareholder yield, could potentially offset concerns about insider selling.
However, investors should note that ZYXI is currently trading at a high P/E ratio of 52.01, which may indicate that the stock is priced at a premium compared to its earnings. This valuation metric, along with the InvestingPro Tip highlighting that the stock has taken a big hit over the last week, suggests that investors should carefully consider the company's current market position.
For those seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Zynex Inc., providing a deeper understanding of the company's financial health and market performance.
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