In a recent transaction, Mitch Hill, the Chief Financial Officer of Inari Medical, Inc. (NASDAQ:NARI), has sold a portion of his holdings in the company. On July 12, Hill disposed of 3,035 shares at an average price of $53.72 and an additional 1,965 shares at an average price of $54.31. The total value of the shares sold amounts to over $260,000.
This sale was conducted under a Rule 10b5-1 trading plan, which was previously adopted by Hill on November 9, 2023. Such plans allow company insiders to establish pre-planned transactions to sell a specified number of shares at a predetermined time to avoid accusations of insider trading.
The prices at which the shares were sold varied, with the first batch of 3,035 shares being sold in multiple trades at prices ranging from $53.16 to $54.15, and the second batch of 1,965 shares being sold at prices from $54.16 to $54.52. The reported prices represent the weighted average of these trades.
In addition to the sales, Hill also acquired 5,000 shares of Inari Medical's common stock through the exercise of stock options at a strikingly low price of $0.457 per share. Following these transactions, Hill's direct ownership in the company stands at a significant number of shares.
Inari Medical, based in Irvine, California, specializes in surgical and medical instruments and apparatus. The company's stock transactions and holdings of its executives are closely watched by investors for indications of the company's internal confidence and potential future performance.
Investors and those interested in the detailed transactions can request full information regarding the number of shares and the prices at which the sales were effected from the company, the SEC staff, or a security holder of the issuer, as per Hill's undertaking in the SEC filing.
The transactions were publicly disclosed in accordance with SEC regulations, providing transparency into the trading activities of Inari Medical's executives.
In other recent news, Inari Medical Inc. reported noteworthy Q1 results, with revenue reaching $143.2 million, marking a 23% increase year-over-year. The company's revenue outperformance led to an upward revision in its full-year revenue guidance, now expecting between $592.5 million and $602.5 million. Despite strong revenue, the company reported a GAAP operating loss of $17.2 million due to several deal-related expenses.
Various analyst firms have adjusted their stances on Inari Medical. Truist Securities raised the company's price target to $60, maintaining a Hold rating. Baird also increased its price target to $65 while retaining an Outperform rating. On the other hand, Piper Sandler, Canaccord Genuity, and Needham revised their price targets downward but maintained their neutral to positive stances on the stock.
Inari Medical has outlined its three primary growth drivers: Venous Thromboembolism (VTE) treatments, Emerging Therapies, and international expansion. The company plans to expand into new markets such as China and Japan later this year. These recent developments reflect the company's ongoing efforts to strengthen its market position and achieve its growth objectives.
InvestingPro Insights
Amidst the recent insider transactions at Inari Medical, Inc. (NASDAQ:NARI), the company’s financials and market performance offer additional context for investors. Inari Medical has demonstrated an impressive Gross Profit Margin of 87.67% over the last twelve months as of Q1 2024, indicating a strong ability to control costs relative to revenue. Despite this, the company has been operating at a loss, with an Operating Income Margin of -1.23% for the same period.
While the CFO’s sale of shares could signal various personal or financial strategies, it is worth noting that Inari Medical’s stock has seen a strong return over the last three months, with a price total return of 40.15%. This performance may have provided an opportune moment for the CFO to realize gains from his equity in the company.
An InvestingPro Tip highlights that Inari Medical’s liquid assets exceed short-term obligations, which suggests a solid financial position for the company in the near term. However, it is important for investors to consider that analysts expect a drop in net income this year, and the company is not anticipated to be profitable within this timeframe. With these insights, investors can better weigh the recent insider trading against the broader financial landscape of Inari Medical.
For those looking to delve deeper into Inari Medical’s financial health and future prospects, InvestingPro provides a comprehensive analysis with additional InvestingPro Tips. There are currently 9 additional tips available on the platform, which you can access by visiting: https://www.investing.com/pro/NARI. And don't forget, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, adding more value to your investment research.
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