Penumbra Inc. (NYSE:PEN) – Sell or Short Recommendation – $43.25 PT

March 16, 2016 concludes the 180-day lockup period on Penumbra Incorporated. We highlighted this event, along with additional analyses of the recent IPO Penumbra on our IPO Insights platform.

When the lockup period ends for PEN, its pre-IPO shareholders, directors and executives will have the chance to sell their 26 million shares.

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The potential for a sudden increase in stock available in the open market may cause a significant decrease in PEN share price.

Business Summary: Manufacturer of Medical Devices that Address Certain Vascular Conditions

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Penumbra Inc. designs, develops, manufactures and sells medical devices domestically and internationally. The company’s Source includes neurovascular access devices under the brand names Velocity, PXSLIM, DDc, BENCHMARK, Select, Neuron, and Neuron MAX; and aspiration-based thrombectomy systems and accessories under the brand name Penumbra System, in addition to a stent retriever for certain thrombectomy procedures called 3D. Its Penumbra Coil 400 and SMART Coil are neurovascular embolization coiling systems that treat aneurysms and neurovascular lesions. Its other devices are under the brand names Liberty Stent, RUBY Coil, POD, and Indigo System. The company sells its products through its salesforce and distributors to hospitals in the neuro and peripheral vascular markets. Penumbra, Inc. was founded in 2004 and is headquartered in Alameda, California.

Penumbra will announce fourth quarter and full year 2015 financial results on March 8. Net income for the third quarter of 2015 was $0.9 million versus $0.2 million the same period in 2014.

Solid Financial Performance Further Supports Possible Insider Selling Come Lockup Expiration

For the third quarter of 2015, Penumbra reported the following financial results: