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Inari Medical - AI Stock Analysis

Analysis generated May 22, 2024

Inari Medical is a company specializing in the medical technology field focusing on treatments for venous diseases. The company is renowned for its innovative and minimally invasive products designed to address two main conditions: venous thromboembolism and deep vein thrombosis. Inari Medical has been growing steadily, leveraging its technological expertise to gain a significant market share in the healthcare sector.

Fundamental Analysis

Let's delve into the financial health of Inari Medical. The revenue for the last quarter was $143M. This indicates a growth of 10.58% compared to the previous quarter and a year-over-year growth of 22.37%, suggesting a positive trajectory in the company's sales performance.

However, the net income reveals some concerning trends. The net income for the last quarter was $24M, representing a substantial decrease of 418.80% compared to the previous quarter. Compared to the same quarter last year, the net income decreased by 991.16%. Such significant declines in net income indicate severe profitability issues, raising red flags for potential investors.

Similarly, EBITDA for the last quarter was $14M, showing a decrease of 2,514.97% compared to the previous quarter and a 844.80% decline year-over-year. The sharp decline of EBITDA points to deteriorating operational performance, which could also negatively impact investor sentiment.

Additionally, there has been insider selling of stock in the past few months. Insider selling is often seen as a bearish signal because it may indicate that those close to the company are not confident in future performance.

Technical Analysis

Today's stock price of Inari Medical stands at $47.67. This marks an increase of 25.68% compared to a month ago, indicating a strong short-term positive trend. However, over the long term, there is a decrease of 23.40% compared to a year ago, which could suggest potential issues in the longer horizon.

The moving averages corroborate a short-term bullish trend. The current SMA10 is $46.11, which is higher than the previous SMA10 of $45.72. The upward trend in the simple moving average indicates a potential continuation of the price increase. The RSI (Relative Strength Index) is sitting at 45, indicating a neutral condition at the moment.

Alternative Data Analysis

In the realm of alternative data, Inari Medical has 38 open positions according to job boards, and this number has remained stable recently. A stable number of job postings is generally a good sign of a stable business operation. However, the business outlook has declined by 28% in the last few months, a worrisome trend that could suggest future headwinds.

Customer acquisition is also a critical area. The company has an estimate of 17,000 visitors to its webpage, but this number is down by 35% in the last couple of months—a concerning sign that could indicate a decline in potential customer interest. On the bright side, customer engagement on social media shows 960 followers on their Instagram page, with an increase of 9% recently, suggesting a mild increase in interest. Twitter followers stand at 4,200 with no meaningful change in recent months.

AltIndex's AI score gives Inari Medical a score of 62, which is typically interpreted as a "buy" signal. This score was derived using fundamental, technical, and alternative data analysis.

Conclusion and Recommendation

Inari Medical presents a mixed bag for potential investors. On the one hand, the company boasts strong revenue growth and a positive short-term stock price trend. On the other hand, significant declines in net income and EBITDA raise concerns about its financial health. The insider selling and decreasing business outlook metrics exacerbate these worries.

However, the bullish short-term technical indicators and a relatively favorable AI score could imply that current market movements are favorable. The deteriorating customer acquisition metrics highlight future risks that cannot be ignored.

Recommendation: Given the positive short-term signals but significant long-term financial and operational concerns, a cautious buy or even maintaining a hold position may be prudent until clearer trends emerge. It's advisable for investors to keep a close watch on Q4 results and any new strategic moves by the company to address its profitability issues.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.