Zynex, Inc. (NASDAQ:ZYXI) released its quarterly earnings on October 8, 2023, revealing a loss of $0.41 earnings per share (EPS). This figure fell short of analysts’ expectations, which had projected a loss of $0.19 EPS, according to Zacks Investment Research. The company also reported a negative return on equity of 78.54% and a net margin of 19.79%.
Following the earnings announcement, Zynex’s stock experienced a slight decline, trading down 0.5% to $0.57 during the trading hours on the same day. The volume of shares exchanged reached 1,051,659, significantly higher than its average volume of 229,613. Over the past twelve months, the stock has fluctuated between a low of $0.51 and a high of $8.72. Currently, Zynex’s market capitalization stands at $17.12 million, with a price-to-earnings ratio of -0.60.
Analyst Reactions and Market Sentiment
In light of Zynex’s disappointing earnings, several analysts have reassessed their ratings on the stock. HC Wainwright downgraded Zynex from a “buy” to a “neutral” rating in a report issued on August 1, 2023. Weiss Ratings followed suit, issuing a “sell (d-)” rating just a few days later. Conversely, LADENBURG THALM/SH raised its rating from “neutral” to “buy,” setting a price target of $3.70.
Currently, one analyst has assigned a Buy rating to Zynex, while two have rated it as Hold and one has issued a Sell rating. According to data from MarketBeat.com, the consensus rating for Zynex is “Hold,” with an average price target of $4.90.
Institutional Investors Adjust Holdings
Recent trading activity has seen several institutional investors and hedge funds modify their stakes in Zynex. Goldman Sachs Group Inc. increased its holdings by 118.2% during the first quarter, acquiring an additional 92,463 shares, bringing its total to 170,718 shares valued at approximately $376,000. Jane Street Group LLC also boosted its position by 239.9%, now owning 53,377 shares worth around $117,000.
Other notable transactions include XTX Topco Ltd, which purchased a new position valued at approximately $47,000, and Marshall Wace LLP, acquiring shares worth about $131,000. Hedge funds collectively hold 29.68% of Zynex’s stock, reflecting significant institutional interest despite the recent downturn in performance.
Zynex, Inc. specializes in designing, manufacturing, and marketing medical devices intended to treat chronic and acute pain. Their product lineup includes the NexWave, a dual-channel device, and the NeuroMove, which utilizes electromyography and electric stimulation technology.
As Zynex navigates its current challenges, the focus will remain on how it adapts to market pressures and potential recovery strategies moving forward.
