OrthoPediatrics Corp's (NASDAQ:KIDS) General Counsel and Secretary, Daniel J. Gerritzen, has sold shares of the company's stock, according to a recent SEC filing. Gerritzen sold 10,000 shares at a price of $29.30 per share, totaling $293,000.
The transaction took place on August 21, 2024, and was disclosed in a Form 4 filing with the Securities and Exchange Commission. Following the sale, Gerritzen retains ownership of 77,304 shares in the company, which includes restricted stock awards totaling 66,518 shares.
OrthoPediatrics Corp, based in Warsaw, Indiana, specializes in surgical and medical instruments and apparatus, focusing particularly on pediatric orthopedics. The company's stock trades under the ticker KIDS on the NASDAQ exchange.
Investors often monitor insider transactions as they can provide insights into how executives view the stock's value and future performance. However, such transactions can occur for a variety of reasons and may not necessarily be indicative of the company's outlook.
For further details on the transaction, investors are encouraged to review the full SEC Form 4 filing.
In other recent news, OrthoPediatrics experienced record growth in Q2 2024, with a notable 52% increase in the number of children served and a 33% rise in revenue, reaching a high of $52.8 million. This significant expansion was mainly fueled by the trauma and deformity, domestic scoliosis, and specialty bracing sectors. The company also secured a $25 million term loan and announced a stock repurchase program of up to $5 million.
OrthoPediatrics has also revealed its future growth strategies, which include launching new products and expanding internationally. The company's full-year 2024 revenue guidance remains between $200 million and $203 million, with an expected adjusted EBITDA of $8-9 million.
In the analyst's view, OrthoPediatrics is optimistic about growth in international markets and capturing market share. The company also plans to achieve cash flow breakeven by 2026 and expects to produce $8-9 million in adjusted EBITDA in 2024. These are among the recent developments in the company's financial landscape.
InvestingPro Insights
Amidst the insider trading activity, OrthoPediatrics Corp (NASDAQ:KIDS) presents a mixed financial landscape. According to InvestingPro data, the company's market capitalization stands at $752.34 million, reflecting its valuation in the market. Despite a significant return over the last week, with a 13.75% price total return, the company's stock has experienced fluctuations over different periods, including a 1-year price total return of -15.19%.
InvestingPro Tips suggest that while analysts have recently revised their earnings upwards for the upcoming period, they do not expect OrthoPediatrics Corp to be profitable this year. The company's financial health shows that it operates with a moderate level of debt and that its liquid assets exceed short-term obligations, which may offer some reassurance to investors concerned about the company's immediate financial obligations.
However, the company's P/E ratio is currently negative at -28.22, and it is not paying dividends to shareholders, which might be points of consideration for investors looking for current profitability or income generation from their investments. For those interested in further insights, InvestingPro offers additional tips on OrthoPediatrics Corp, which can be found at InvestingPro.
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