MYO

Myomo ($MYO) Director Makes $167,500 Stock Purchase Following 34% Share Price Plunge

05/14/2025 12:30

Medical wearable robotics company Myomo ($MYO) is drawing attention after director Thomas Kirk made a significant stock purchase following a sharp price decline. According to SEC filings, Kirk purchased 50,000 shares at $3.35 per share on May 12, representing a total investment of approximately $167,500. This transaction occurred immediately after Myomo's stock plummeted 34% in a single day, from $4.88 to $3.20 on May 9. This purchase marks Kirk's second stock acquisition this year, having previously bought 7,400 shares at $5.00 on March 14. Notably, his buying stands in contrast to selling activity by other executives, as CEO Harry Kovelman and CCO Micah Mitchell sold 30,000 and 48,000 shares respectively in March. Myomo develops wearable robotic technology for individuals with neuromuscular disorders and upper-limb paralysis. Its flagship product, MyoPro, has established itself as the only marketed device in the U.S. that uses non-invasive sensors to restore functionality to weakened or paralyzed arms. The company has been focusing on expanding its product line with enhanced versions such as MyoPro 2 and MyoPro2+, emphasizing technological innovation. Financially, the company continues to face challenges. Myomo reported trailing twelve-month revenue of $32.55 million with a net loss of $6.18 million and a profit margin of -19%. However, its Q4 2024 results announced in March showed record quarterly revenue of $12.1 million and a reduced net loss of $300,000, signaling potential financial improvement. The company maintains a relatively stable liquidity position with $24.87 million in cash reserves. The stock has experienced significant volatility this year. After reaching nearly $7 in early January 2025, it has since declined by more than 50% to current levels around $3.20. The sudden 34% drop on May 9 particularly shocked investors. While the specific cause of this steep decline remains unclear, broader market uncertainties and diminished investor appetite for small-cap stocks may have contributed. Myomo is scheduled to host its first-ever Investor & Analyst Day on June 18 at its new corporate headquarters and manufacturing facility in Burlington, Massachusetts. The event is expected to showcase recent achievements, upcoming milestones, performance metrics, product innovations, and growth strategies. Industry experts view Myomo's products positively for their unique position in the specialized medical device market, though they note that achieving consistent profitability remains crucial. According to P&S Intelligence, the global medical wearable robotics market is projected to grow from $2.2 billion in 2023 to $6 billion by 2030, representing a compound annual growth rate of 15.7%. Director Kirk's substantial stock purchase can be interpreted as a signal that insiders believe in the company's long-term value during this period of price decline. Generally, insider purchases, particularly by board members, are considered strong indicators that they view the stock as undervalued. Investors should pay close attention to Myomo's next quarterly results and the strategies to be unveiled at the June Investor Day. Additionally, any further insider trading patterns following the steep price decline could provide important investment signals. The next earnings announcement is expected in early August, when reaching breakeven and maintaining growth momentum will be critical factors for evaluation.

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