French Glendon E. III, a director at Pulmonx Corp (NASDAQ:LUNG), has sold 20,000 shares of the company's common stock. The transaction, executed on October 17, 2024, was conducted at a weighted average price of $6.52 per share, totaling $130,399. Following this sale, French retains ownership of 1,091,974 shares in the company.
The sale was carried out under a Rule 10b5-1 trading plan, which was adopted by French on June 10, 2024. The shares were sold in multiple transactions at prices ranging from $6.50 to $6.73.
In other recent news, Pulmonx Corp. reported a 21% year-over-year increase in its second-quarter revenue, reaching $20.8 million, surpassing both Canaccord Genuity's and consensus estimates. The company's earnings per share (EPS) for the quarter were reported at ($0.39), outperforming both Canaccord's estimate of ($0.47) and the consensus estimate of ($0.42). This positive outcome was due in part to Pulmonx's disciplined approach to operating expenses, particularly in sales, general, and administrative costs (SG&A).
In the United States, Pulmonx's revenue reached $13.9 million, exceeding Canaccord's forecast of $13.6 million. The company also expanded its reach by adding 17 centers in the second quarter, surpassing the 11 centers anticipated by the analyst. Pulmonx's management team reiterated their strategy, focusing on enhancing workflow and boosting utilization at existing accounts, which is currently the main focus of their sales strategy.
Despite strong performance, Pulmonx has chosen to reiterate its full-year 2024 guidance, citing historical unpredictability in seasonal demand, particularly in the U.S. market. Canaccord Genuity, however, has reaffirmed its Buy rating on Pulmonx and adjusted the price target upward, influenced by the company's focus on improving utilization at existing centers and its disciplined expense management.
Lake Street Capital Markets also initiated coverage on Pulmonx with a Buy rating, seeing an opportunity for the stock to realign with comparable companies as investor confidence is bolstered by strong performance. Lastly, Pulmonx reported a robust start to 2024 with a 30% increase in worldwide sales, underpinned by the expansion of its Zephyr Valve treatment centers and strategic initiatives aimed at driving awareness and adoption of its innovative Zephyr Valve technology.
InvestingPro Insights
As Pulmonx Corp (NASDAQ:LUNG) director French Glendon E. III sells a portion of his holdings, investors may want to consider additional context provided by InvestingPro data and tips.
Pulmonx's market capitalization stands at $244.31 million, reflecting its current position in the medical devices sector. The company's revenue growth is noteworthy, with a 26.26% increase over the last twelve months as of Q2 2024, reaching $76.58 million. This growth trend is also evident in the quarterly revenue, which saw a 20.87% increase in Q2 2024.
However, profitability remains a challenge for Pulmonx. An InvestingPro Tip indicates that the company is not profitable over the last twelve months, which is reflected in its negative operating income of -$59.25 million and an operating income margin of -77.37%. This aligns with another InvestingPro Tip suggesting that analysts do not anticipate the company will be profitable this year.
Despite these profitability concerns, Pulmonx maintains a strong balance sheet. An InvestingPro Tip highlights that the company holds more cash than debt, which could provide financial flexibility as it works towards profitability. Additionally, Pulmonx's liquid assets exceed short-term obligations, indicating a solid short-term financial position.
The recent stock performance has been challenging, with the InvestingPro data showing a one-month price total return of -24.24% as of the latest data. This poor short-term performance is corroborated by an InvestingPro Tip noting that the stock has fared poorly over the last month.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for Pulmonx Corp, providing a deeper understanding of the company's financial health and market position.
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