10 Worst Middle East and Africa Stocks To Buy According to Short Sellers

5. InMode (NASDAQ:INMD)  

Short Interest as % of Shares Outstanding: 8.04%

Number of Hedge Fund Investors in Q2 2024: 14

InMode (NASDAQ:INMD), an Israeli company, specializes in developing, manufacturing, and marketing cutting-edge medical technologies, with a focus on radio-frequency (RF) technology. The company has 10 patented innovations designed to enhance minimally invasive procedures and improve traditional surgical techniques across various medical fields. InMode’s (NASDAQ:INMD) technologies are widely used by professionals in plastic surgery, gynecology, dermatology, ENT, and ophthalmology. These products enable doctors to perform procedures with greater precision, shorter recovery times, and less invasiveness compared to conventional surgeries.

On July 17, InMode (NASDAQ:INMD) received FDA 510(k) clearance for its Morpheus8 technology, making it the first fractional RF micro-needling device approved for soft tissue contraction. This clearance expands the Morpheus8 Applicators’ use in dermatologic procedures requiring soft tissue coagulation or hemostasis. InMode (NASDAQ:INMD) has also introduced the IgniteRF and OptimasMAX platforms that use Morpheus8 handpieces for minimally invasive RF and intense pulsed light skin treatments. These developments are expected to drive higher adoption of Morpheus8, increasing the company’s earnings potential. With over 2.5 million procedures performed globally and strong consumer demand, these advancements solidify InMode’s (NASDAQ:INMD) leadership in the market and are poised to boost its financial performance and market share.

InMode (NASDAQ:INMD) is implementing a multifaceted strategy to drive sales, focusing on its new systems like the Optimus Max and IgniteRF platforms, which offer advanced technology and user-friendly features. These systems complement existing platforms such as BodyTite, FaceTite, and NeckTite, providing doctors with a versatile suite of tools. The company is also offering selective trade-in programs for customers with fully paid-off systems, encouraging upgrades to Optimus Max. InMode (NASDAQ:INMD) is leveraging a large sales team and distributor network across 96 countries to drive international sales. The company is actively combating counterfeit products, particularly Chinese copies of popular systems like Morpheus8, through legal action.

InMode (NASDAQ:INMD) is trading at 9.43 times its earnings, a 57.10% discount to the sector median of 21.97. While 8.04% of the company’s shares are shorted, 14 hedge funds have maintained a bullish sentiment on the stock as of the second quarter with stakes worth $117.68 million. Renaissance Technologies is the largest shareholder in the company and holds stocks worth $37.72 million as of June 30.