YOKNEAM, Israel - InMode Ltd . (NASDAQ:INMD), a prominent provider of medical technology, has initiated a new share repurchase program, authorizing the buyback of up to 7.68 million ordinary shares, as announced by the company today.
This strategic move comes on the heels of a recently completed share buyback and is seen as a testament to the company's confidence in its long-term growth prospects. InMode's CEO, Moshe Mizrahy, expressed the board's belief in the company's future, citing the new repurchase program as evidence of this conviction.
Despite broader economic challenges, InMode's CFO, Yair Malca, pointed out the company's sustained profitability and cash generation capabilities. Malca also mentioned that after consultation with tax advisors, the company anticipates no tax consequences stemming from the repurchase program. He added that InMode's robust cash reserves and the current market valuation were key factors in the board's decision to authorize another buyback.
The repurchase of shares will be executed using the company's available cash, and the program may be adjusted or halted at any time based on market conditions.
InMode specializes in developing and marketing devices that utilize radiofrequency (RF) technology for various medical applications, including plastic surgery, gynecology, dermatology, otolaryngology, and ophthalmology. The company aims to innovate and enhance surgical procedures through its RF technology-based product line.
The information provided here is based on a press release statement from InMode. It is important to note that forward-looking statements within the press release are subject to risks and uncertainties, and actual results may differ materially from those projected. These statements reflect management's current expectations and are not guarantees of future performance.
In other recent news, InMode Ltd. reported mixed second-quarter earnings for 2024. The company, despite facing decreased demand for treatments and a decline in consumable and service revenue, achieved $86.4 million in revenue with a robust gross margin of 80%. InMode also launched two new platforms, IgniteRF and Optimus Max, which have seen strong demand and are expected to fulfill pre-orders by the end of the year. However, due to macroeconomic trends and market demand issues, the company has provided a lower revenue guidance for 2024, estimated between $430 million and $440 million.
In addition to these developments, InMode executed a significant share buyback, repurchasing 8.37 million shares, which accounts for approximately 10% of the total outstanding shares. The company also received FDA clearance for Morpheus8 for soft tissue contraction. Despite these advancements, InMode remains cautious in providing strong predictions for 2025, pending third-quarter performance. These recent developments highlight InMode's efforts to navigate market challenges while continuing to innovate in the medical aesthetic treatment sector.
InvestingPro Insights
As InMode Ltd. (NASDAQ:INMD) embarks on a new share repurchase program, highlighting management's belief in the company's value and future performance, insights from InvestingPro provide additional context for investors considering the company's stock. Notably, InMode's management has been aggressively buying back shares, which can often be interpreted as a signal of undervalued stock and management's confidence in the company's prospects. Moreover, InMode is in a strong financial position, holding more cash than debt on its balance sheet, which gives it the flexibility to undertake share repurchases without compromising its financial stability.
Delving into the numbers, InMode has a market capitalization of approximately $1.31 billion and boasts a compelling price-to-earnings (P/E) ratio of 8.77. This valuation metric is particularly interesting when compared to the adjusted P/E ratio for the last twelve months as of Q2 2024, which stands at 8.8, suggesting that the stock may be undervalued relative to its earnings. Additionally, the company's gross profit margin is remarkably high at 82.27%, reflecting its ability to maintain profitability despite revenue declines.
Investors should note that analysts have revised their earnings downward for the upcoming period, and a sales decline is anticipated for the current year. However, the company's stock is trading near its 52-week low, which may present a potential entry point for value investors. For those keen on exploring further, there are additional insights available, with 10 more InvestingPro Tips listed on the platform for InMode, providing a deeper dive into the company's financial health and stock performance.
For more detailed analysis and tips, interested parties can visit InMode's page on InvestingPro: https://www.investing.com/pro/INMD.
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