In a recent transaction, Mitch C. Hill, the Chief Financial Officer of Inari Medical, Inc. (NASDAQ:NARI), sold a portion of his company stock, netting over $135,000. The sale, which took place on September 12, was disclosed in a filing with the Securities and Exchange Commission.
Hill sold a total of 3,000 shares of Inari Medical's common stock at an average price of $0.457, amounting to $1,371. Following this transaction, he still held 182,600 shares of the company's stock, indicating continued investment in the company's future.
On the same day, Hill engaged in multiple sales transactions of Inari Medical stock. He sold 1,609 shares at prices ranging from $44.13 to $44.95, with the weighted average price being $44.38. Additionally, he sold 891 shares at an average price of $45.80, with individual sales prices varying between $45.24 and $46.23. Lastly, Hill sold 500 shares at a weighted average price of $46.34, with the actual sale prices fluctuating from $46.24 to $46.53. Collectively, these sales transactions amounted to a total of $135,385.
The transactions were conducted under a pre-established trading plan in accordance with Rule 10b5-1, which allows insiders to set up a predetermined schedule to buy or sell company stock at a time when they are not in possession of material non-public information.
The filing also noted that Hill's spouse indirectly owns 1,600 shares of Inari Medical stock. As for derivative securities, Hill exercised options for 3,000 shares of common stock at a conversion price of $0.457. These options are part of a larger grant that began vesting in April 2020 and will continue to do so in monthly installments.
Inari Medical, Inc., headquartered in Irvine, California, specializes in developing medical devices for the treatment of venous diseases. The company's financial leadership remains a point of interest for investors following the stock market and insider trading activities.
In other recent news, Inari Medical has seen significant developments. Piper Sandler reaffirmed a Neutral rating on Inari Medical's stock, maintaining a $50.00 price target. The firm addressed recent study data regarding Inari Medical's FlowSaver technology, indicating an increase in plasma free hemoglobin levels after multiple uses, but maintains that it should not affect the company's commercial outlook.
Meanwhile, Deutsche Bank (ETR:DBKGn) has reiterated its Buy rating for Inari Medical, with a $68.00 price target, despite safety concerns regarding two of the company’s products. The firm believes the market reaction to these concerns is an overreaction, thus presenting an opportunity for investment.
In contrast, Truist Securities adjusted its price target for Inari Medical, decreasing it to $55 from the previous $60, while maintaining a Hold rating on the company's stock. This adjustment followed Inari Medical's second-quarter earnings report, which showed a modest revenue beat and a raised forecast, but also a larger than expected operational loss.
In addition to financial results, Inari Medical announced an unexpected Chief Financial Officer transition. These are the latest updates in the company's journey.
InvestingPro Insights
As investors analyze the recent stock transactions by Inari Medical's CFO Mitch Hill, it's essential to consider the broader financial landscape of the company. According to InvestingPro data, Inari Medical (NASDAQ:NARI) boasts a robust gross profit margin of 87.15% over the last twelve months as of Q2 2024, reflecting the company's strong ability to manage production costs relative to sales. However, this financial efficiency comes amidst challenges, as the company's net income is anticipated to decline this year, and analysts do not expect Inari Medical to be profitable within the same timeframe.
Despite these concerns, Inari Medical's market capitalization stands at $2.71 billion, indicating a significant presence in the market. Yet, investors should note the company's high Price / Book multiple of 6.4, which suggests a premium valuation compared to the book value of its assets. This could be a point of caution for value-oriented investors. Additionally, the company's Price / Earnings (P/E) ratio is currently negative at -46.95, reflecting the market's expectations of future earnings growth or potential overvaluation.
For those interested in a deeper dive, InvestingPro provides further insights, including a total of 7 InvestingPro Tips for Inari Medical, which can be found at InvestingPro. These tips offer a comprehensive look at the company's financial health and market position, such as its moderate level of debt and the fact that it does not pay a dividend to shareholders, which can be crucial information for potential investors.
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