Thomas Sandgaard, the President, CEO, and Chairman of Zynex Inc. (NASDAQ:ZYXI), recently sold a portion of his holdings in the company. According to a recent SEC filing, Sandgaard sold a total of 6,000 shares of Zynex common stock over three days, from November 4 to November 6, 2024. The transaction, conducted under a pre-arranged trading plan, saw shares sold at prices ranging from $8.05 to $8.82 per share, amounting to a total of $51,080.
Following these transactions, Sandgaard retains ownership of 14,615,662 shares. These sales were executed as part of a Rule 10b5-1 trading plan, which allows insiders to set up a predetermined schedule for selling stocks to avoid potential conflicts of interest.
In other recent news, Zynex, Inc. reported a modest increase in Q3 net revenue to $50 million, alongside a net income of $2.4 million. This represents a year-over-year order growth of 13%, with the company projecting a total revenue of $200 million for 2024. Despite a dip in device revenue, Zynex saw an increase in supplies revenue and is actively diversifying its product offerings, anticipating FDA clearance for its NiCO pulse oximeter.
On the other hand, the company's net income decreased from the previous year and adjusted EBITDA fell to $5.1 million. However, Zynex's order growth was 13% year-over-year, with a 17% increase in orders for October. The company plans to expand its sales force by adding 10 sales representatives monthly over the next 18 months, and expects Q4 revenues to be at least $53.6 million, a 13% increase year-over-year.
These are recent developments that highlight Zynex's steady growth and future expansion plans. The company remains focused on diversifying its revenue streams and enhancing its product offerings, positioning itself for sustained growth and profitability in the coming years.
InvestingPro Insights
Recent insider activity at Zynex Inc. (NASDAQ:ZYXI) provides an opportunity to examine the company's financial health and market position. According to InvestingPro data, Zynex has a market capitalization of $291.71 million, reflecting its current standing in the medical devices industry.
Despite the recent insider sale, InvestingPro Tips highlight that management has been aggressively buying back shares, suggesting confidence in the company's future prospects. This is particularly noteworthy given Zynex's high shareholder yield, which could indicate a commitment to returning value to investors.
The company's financial metrics present a mixed picture. Zynex boasts a strong gross profit margin of 79.69% for the last twelve months as of Q3 2023, indicating efficient core operations. However, the company is trading at a high P/E ratio of 61.34, which may raise questions about its current valuation relative to earnings.
Interestingly, Zynex has seen a strong return over the last month, with a price total return of 18.38% as of the latest data. This short-term performance is notable, especially considering the company's profitability over the last twelve months and analysts' predictions of continued profitability this year.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips on Zynex, providing a deeper dive into the company's financial health and market position. These insights could be particularly valuable in light of the recent insider transaction and the company's current market dynamics.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.