In a recent transaction on June 21, Rebecca Chambers, a director at Inari Medical, Inc. (NASDAQ:NARI), sold 260 shares of the company's common stock at a price of $45.99 each, totaling $11,957. The sale was conducted under a pre-arranged trading plan, known as a Rule 10b5-1 plan, which Chambers had adopted on December 6, 2023.
Following the sale, Chambers still holds a total of 9,684 shares in the company, indicating continued vested interest in Inari Medical's performance. The Rule 10b5-1 plan allows company insiders to set up a predetermined schedule for selling stocks at a time when they are not in possession of material non-public information, thus helping to avoid allegations of insider trading.
The transaction was reported in a Form 4 filing with the Securities and Exchange Commission (SEC), dated June 24, 2024. Inari Medical, headquartered in Irvine, California, operates in the healthcare sector, focusing on surgical and medical instruments and apparatus.
Investors often monitor insider transactions as they can provide insights into an insider's view of the company's future prospects. However, it is important to note that trading activity by insiders can be subject to various personal financial requirements and does not necessarily signal corporate developments.
Rebecca Chambers' recent transaction is part of the regular disclosure of stock trades by company insiders, providing transparency to the market and allowing investors to stay informed about significant insider trades at Inari Medical.
In other recent news, Inari Medical announced robust Q1 results, with revenues reaching $143.2 million, surpassing estimates from Piper Sandler, Canaccord Genuity, and Needham. This marked a 23% increase year over year, primarily driven by the U.S. core venous thromboembolism (VTE) treatments. The company's Q1 GAAP EPS was impacted by deal-related expenses, resulting in a $0.16 loss per share.
Inari Medical has revised its full-year revenue guidance upward to between $592.5 million and $602.5 million, indicating a 20-22% year-over-year increase. Despite these strong results, Piper Sandler, Canaccord Genuity, and Needham have all lowered their price targets for Inari Medical, awaiting further clarity on the U.S. core VTE franchise and considering the contraction in peer multiples.
The company is also focusing on expanding its product portfolio and entering new markets such as China and Japan. Despite the lowered price targets, these firms maintain a positive stance on Inari Medical's stock, acknowledging the company's solid quarterly results and future growth prospects. These are among the recent developments for Inari Medical.
InvestingPro Insights
As investors digest the recent insider transaction at Inari Medical, Inc. (NASDAQ:NARI), it's crucial to consider the broader financial context of the company. According to InvestingPro data, Inari Medical boasts a market capitalization of $2.67 billion, reflecting its standing in the healthcare sector. Notably, the company has displayed a strong gross profit margin of 87.67% over the last twelve months as of Q1 2024, underscoring its efficiency in managing production costs relative to revenue.
However, the company's financial health is not without its concerns. Inari Medical is currently trading at a high Price / Book multiple of 5.98, which might suggest the stock is valued richly relative to its book value. The P/E Ratio stands at a negative -111.27, indicating that investors are willing to forgo earnings for growth expectation, but the adjusted P/E ratio for the same period has further dipped to -285.35, reinforcing the notion that profitability is a challenge. This is echoed by one of the InvestingPro Tips, which points out that analysts do not expect Inari Medical to be profitable this year, and the net income is anticipated to drop.
Despite the lack of short-term profitability, the company's liquid assets exceed short-term obligations, suggesting a solid position to cover immediate liabilities. Moreover, Inari Medical operates with a moderate level of debt, which might offer some comfort to risk-averse investors. For those looking to delve deeper into the financial nuances of Inari Medical, InvestingPro offers additional tips. There are currently six more InvestingPro Tips available, providing a comprehensive analysis of the company's financial health and future prospects.
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