Shares of Zynex closed 10.1% higher on Monday after the medical device manufacturer announced its plans to repurchase $10 million worth of shares.
Don't Miss Our Christmas Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Zynex (ZYXI) said that the repurchase program will commence immediately and is set to expire on Sep. 8, or before the buyback limit of $10 million is reached.
The company’s CEO Thomas Sandgaard said, “this buyback program authorization reflects the board’s confidence in both our short-term prospects and our long term growth strategy.” He added that, “the buyback program represents an attractive opportunity to deploy capital in a way that will benefit stockholders.”
Last month, Zynex reported lower-than-expected 4Q results. The company reported 4Q earnings of $0.05 per share, which missed consensus estimates by a cent and fell 44.4% year-over-year. Revenues of $25.6 million grew 81% year-over-year but missed analysts’ expectations of $25.8 million. (See Zynex stock analysis on TipRanks)
Following the 4Q miss, B.Riley Financial analyst Marc Wiesenberger downgraded the stock to Hold from Buy and lowered the price target to $19 (17% upside potential) from $23. In a note to investors, the analyst said that the company provided a “wider than normal” FY21 guidance range. The analyst further lowered his FY21 estimates, given “deteriorating profitability and increased uncertainty.”
Overall, the Street has a Moderate Buy consensus rating based on 1 Buy and 3 Holds. The average analyst price target of $21.63 implies upside potential of over 33% to current levels. Shares have gained about 14.6% in one year.
Related News:
Dycom Plans $150M Share Buyback After 4Q Sales Beat; Stock Jumps 12.4%
CMC Materials Bumps Up Quarterly Dividend By 5%, Boosts Share Buyback Plan
Henry Schein Reinstates Share Buyback Plan; Street Sees 30% Upside