Sell Alert: Daniel Moorhead Cashes Out $123K In Zynex Stock

Daniel Moorhead, Chief Financial Officer at Zynex ZYXI, reported an insider sell on July 30, according to a new SEC filing.

What Happened: Moorhead's recent move involves selling 15,000 shares of Zynex. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total value is $123,600.

During Wednesday's morning session, Zynex shares up by 5.84%, currently priced at $8.7.

Unveiling the Story Behind Zynex

Zynex Inc is engaged in the manufacturing and marketing of medical devices. It operates through one primary business segment, Electrotherapy and Pain Management Products. The business activities of the company are carried out through its subsidiaries. The company designs, manufactures, and markets medical devices that treat chronic and acute pain, as well as activate and exercise muscles for rehabilitative purposes with electrical stimulation. The company markets Zynex-manufactured products which include NexWave, NeuroMove, InWave E-Wave, and others.

Zynex's Economic Impact: An Analysis

Revenue Growth: Zynex displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 10.97%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Health Care sector.

Key Profitability Indicators:

• Gross Margin: With a high gross margin of 80.01%, the company demonstrates effective cost control and strong profitability relative to its peers.

• Earnings per Share (EPS): Zynex's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.04.

Debt Management: Zynex's debt-to-equity ratio stands notably higher than the industry average, reaching 2.28. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Valuation Metrics: A Closer Look

• Price to Earnings (P/E) Ratio: Zynex's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 45.67.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.43, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio of 20.48, the company's market valuation exceeds industry averages.

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

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Why Pay Attention to Insider Transactions

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Transaction Codes Worth Your Attention

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Zynex's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.