The technical picture for RXMD is promising, with the Ichiroku Cloud buy signal active right now after the stock has consolidated its strong November gains in the form of a symmetric triangle.
The big upside target here is at $0.07 and then $0.10.
The fundamental backdrop is extremely supportive as well. Recently, the company posted its Q3 data covering things through September, which showed consolidated quarterly year-over-year Revenue Growth of 91% to $10.14 million, gross margins expanding to 24.4% (versus Q2 22.7%, Q1 19.8%), and gross profit up 128% year-over-year to $2.47 million.
“Q3 set new records across basically all metrics. We saw accelerating growth in sales and prescriptions while continuing our strong multi-quarter trends of falling costs and expanding gross margins. Beyond the numbers, we are seeing a major positive impact from our recent Family Physicians Rx acquisition, and the Company is firing on all cylinders post-integration. Ultimately, this creates a very favorable backdrop for continued aggressive expansion in the months and quarters ahead as we prepare to launch several powerful new initiatives in Q4 and 2020.”
To follow that up, October sales and prescriptions filled set a new record performance pace for Q4 results.
The CEO , S. Parikh Mars, said: “The annualized pace we set in October equates to new records across the board as we continue to see broad-based top-line expansion on improving margins. Our $3.4 million in overall sales for October is an understatement because it leaves out the cash flows we took in during the month related to third-party billing activity. With all factors included, the number of gross billing would be closer to $4.2 million. And our 46k prescriptions filled puts Q4 on pace to handily supass our breakout Q3 performance already. Execution continues to be tremendous, and I am very proud of our talented and dedicated team.”