DYNT Stock: Here’s Why Dynatronics Is Soaring

Dynatronics Corporation (NASDAQ: DYNT) is having an incredible start to the premarket trading session this morning, and for good reason. The company announced late yesterday the expansion of its relationship with one of its largest customers. 

Here’s what’s going on. 

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Dynatronics Announces Expanded Relationship

As mentioned above, Dynatronics is having an incredibly strong start to the trading session this morning after announcing the expansion of a relationship. In a press release issued early this morning, the company announced that its wholly-owned subsidiary, known as Bird & Cronin, has renewed its purchase agreement with Intalere. 

In the release, the company said that the partnership now extends through January of 2024. 

DYNT went on to explain that Bird & Cronin has been an Intalere preferred provider for more than 20 years. As a result of the partnership, Intalere members will receive a negotiated price on the company’s full line of orthopedic solutions for spine, upper, and lower extremities. This includes key products like the Sprint air walker boot and U2 wrist brace. 

This is huge news considering the more than 100,000 members associated with Intalere including healthcare organizations all over the country. In fact, Intalere members make almost $9 billion in purchases on an annual basis. 

Management Commentary

In a statement, John Krier, CEO at DYNT, had the following to offer:

The twenty-plus year relationship with Intalere has allowed Bird & Cronin to provide healthcare providers with Bird & Cronin’s high-quality products at the right cost. 

Our employees are excited to support Intalere’s mission and empower administrators, supply chain teams, and clinicians to focus on patients through the utilization of Bird & Cronin bracing and support products.

What Analysts Think About DYNT Stock

According to TipRanks, analysts seem to love DYNT stock. At the moment, there are two analysts covering the stock, both of which rate it a Buy. Price targets range from $2 per share to $2.10 per share, with a median of $2.05 per share, representing the potential for more than 60% gains from yesterday’s closing price. 

Nonetheless, the analyst opinions don’t take today’s news into account. As such, upon review, I’m expecting for price targets to come in even higher.  

Risks to Consider Before Buying DYNT Stock

If you’re thinking about buying DYNT stock, you’ll have to be willing to accept risk. After all, there’s no such thing as a risk-free investment. When it comes to DYNT, the most significant risks to consider include:

  • Penny Stock. DYNT is a penny stock. As such, the stock experiences high levels of volatility, making entrance and exit decisions difficult. 
  • Profitability. To date, Dynatronics has yet to turn a profit. That means that the company must rely on the money it has in the bank to survive. If those funds don’t prove to be enough, it may look to public markets as a way to raise funds, leading to the dilution of existing shareholder value and likely significant declines. 
  • Speculation. Any investment in any company that’s not profitable is a speculative bet. All told, speculation only increases the risks associated with investing. 

Final Thoughts

Sure, there are risks to consider before diving into DYNT stock. Nonetheless, the stock seems to be a promising investment opportunity at the moment. With the continued relationship with Intalere, chances are that revenue will continue on the upward trend, pushing the company closer and closer to profitability. All in all, DYNT stock is one to watch closely. 

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