Thomas Sandgaard Takes Money Off The Table, Sells $4.94M In Zynex Stock

Revealing a significant insider sell on March 18, Thomas Sandgaard, President at Zynex ZYXI, as per the latest SEC filing.

What Happened: Sandgaard's recent Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday unveiled the sale of 1,700,000 shares of Zynex. The total transaction value is $4,938,500.

In the Tuesday's morning session, Zynex's shares are currently trading at $2.9, experiencing a down of 0.0%.

Delving into Zynex's Background

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 operates business as one operating segment which includes two revenue types: Devices and Supplies. Its markets Zynex-manufactured products which include NexWave, NeuroMove, InWave E-Wave, and others.

Zynex's Financial Performance

Revenue Challenges: Zynex's revenue growth over 3 months faced difficulties. As of 31 December, 2024, the company experienced a decline of approximately -2.77%. This indicates a decrease in top-line earnings. When compared to others in the Health Care sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Key Profitability Indicators:

• Gross Margin: The company maintains a high gross margin of 78.29%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): With an EPS below industry norms, Zynex exhibits below-average bottom-line performance with a current EPS of -0.02.

Debt Management: Zynex's debt-to-equity ratio is notably higher than the industry average. With a ratio of 2.07, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Navigating Market Valuation:

• Price to Earnings (P/E) Ratio: With a higher-than-average P/E ratio of 32.22, Zynex's stock is perceived as being overvalued in the market.

• Price to Sales (P/S) Ratio: With a P/S ratio of 0.49 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio of 11.74, 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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The Impact of Insider Transactions on Investments

It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.

In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Navigating the World of Insider Transaction Codes

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.

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

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