Chief Operating Officer Of Zynex Sold $199K In Stock

Anna Lucsok, Chief Operating Officer at Zynex ZYXI, reported an insider sell on August 8, according to a new SEC filing.

What Happened: Lucsok's decision to sell 24,875 shares of Zynex was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value of the sale is $199,410.

The latest market snapshot at Friday morning reveals Zynex shares down by 0.0%, trading at $7.84.

Discovering Zynex: A Closer Look

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.

Understanding the Numbers: Zynex's Finances

Revenue Growth: Over the 3 months period, Zynex showcased positive performance, achieving a revenue growth rate of 10.97% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Health Care sector.

Exploring Profitability:

• Gross Margin: The company maintains a high gross margin of 80.01%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): Zynex's EPS is below the industry average. The company faced challenges with a current EPS of 0.04. This suggests a potential decline in earnings.

Debt Management: Zynex's debt-to-equity ratio surpasses industry norms, standing at 2.28. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: A higher-than-average P/E ratio of 43.56 suggests caution, as the stock may be overvalued in the eyes of investors.

• Price to Sales (P/S) Ratio: The current P/S ratio of 1.37 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio of 19.67, the company's market valuation exceeds industry averages.

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

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Understanding the Significance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

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

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Cracking Transaction Codes

When analyzing transactions, investors tend to focus on those in the open market, 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.