BTIG Research Reaffirms "Buy" Rating for Neuronetics (NASDAQ:STIM)

Key Points

• BTIG Research reaffirmed its “Buy” rating on Neuronetics and set a $6.00 price target, implying 104.78% upside from the prior close. Analysts overall give the stock a “Moderate Buy” consensus with an average target of $4.50.
• Neuronetics reported quarterly EPS of -$0.05, beating estimates of -$0.12, while revenue reached $41.57 million versus expectations of $40.17 million. Despite the earnings beat, the company remains unprofitable, with a negative net margin of 19.62%.
• Insider and institutional ownership activity was positive: a major shareholder bought 14,000 shares, while institutional investors—including National Bank of Canada and Barclays—raised their positions. Institutions own 53.59% of the company.

Neuronetics (NASDAQ:STIM - Get Free Report)'s stock had its "buy" rating reaffirmed by investment analysts at BTIG Research in a research note issued to investors on Wednesday, Benzinga reports. They currently have a $6.00 price target on the stock. BTIG Research's price target indicates a potential upside of 104.78% from the stock's previous close.

A number of other brokerages have also weighed in on STIM. Citigroup restated a "market outperform" rating on shares of Neuronetics in a research note on Tuesday, July 21st. Weiss Ratings reiterated a "sell (e+)" rating on shares of Neuronetics in a research report on Thursday, June 18th. Finally, Wall Street Zen raised shares of Neuronetics from a "sell" rating to a "hold" rating in a research note on Sunday, July 12th. Three research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $4.50.

Neuronetics Trading Up 1.7%

Shares of STIM opened at $2.93 on Wednesday. Neuronetics has a twelve month low of $0.80 and a twelve month high of $3.71. The stock has a market cap of $223.27 million, a PE ratio of -6.66 and a beta of 1.16. The company has a quick ratio of 1.69, a current ratio of 1.88 and a debt-to-equity ratio of 2.84. The business's 50-day moving average price is $2.33 and its 200-day moving average price is $1.73.

Neuronetics (NASDAQ:STIM - Get Free Report) last issued its quarterly earnings data on Tuesday, August 11th. The company reported ($0.05) EPS for the quarter, beating the consensus estimate of ($0.12) by $0.07. The company had revenue of $41.57 million during the quarter, compared to analysts' expectations of $40.17 million. Neuronetics had a negative net margin of 19.62% and a negative return on equity of 125.11%.

Insider Buying and Selling

In other news, major shareholder Jorey Chernett purchased 14,000 shares of the company's stock in a transaction on Friday, August 14th. The stock was acquired at an average price of $3.16 per share, with a total value of $44,240.00. Following the transaction, the insider directly owned 10,602,988 shares of the company's stock, valued at approximately $33,505,442.08. This represents a 0.13% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 8.40% of the stock is owned by corporate insiders.

Institutional Trading of Neuronetics

Large investors have recently modified their holdings of the business. National Bank of Canada FI raised its holdings in shares of Neuronetics by 27.5% during the third quarter. National Bank of Canada FI now owns 31,880 shares of the company's stock valued at $87,000 after acquiring an additional 6,880 shares in the last quarter. Royal Bank of Canada lifted its position in Neuronetics by 17.7% during the fourth quarter. Royal Bank of Canada now owns 47,233 shares of the company's stock valued at $65,000 after buying an additional 7,099 shares during the period. David J Yvars Group boosted its holdings in shares of Neuronetics by 35.7% during the 2nd quarter. David J Yvars Group now owns 27,550 shares of the company's stock valued at $36,000 after buying an additional 7,250 shares in the last quarter. Barclays PLC grew its position in shares of Neuronetics by 19.2% in the 4th quarter. Barclays PLC now owns 61,606 shares of the company's stock worth $85,000 after buying an additional 9,941 shares during the period. Finally, Squarepoint Ops LLC increased its stake in shares of Neuronetics by 20.0% in the 3rd quarter. Squarepoint Ops LLC now owns 62,458 shares of the company's stock worth $171,000 after acquiring an additional 10,423 shares in the last quarter. 53.59% of the stock is owned by institutional investors.

About Neuronetics

Neuronetics, Inc is a commercial‐stage medical technology company that develops and markets non-invasive neuromodulation therapies for psychiatric and neurological disorders. The company's flagship product, the NeuroStar Advanced Therapy System, uses repetitive transcranial magnetic stimulation (rTMS) to deliver targeted magnetic pulses to areas of the brain implicated in major depressive disorder (MDD). NeuroStar Advanced Therapy has received U.S. Food and Drug Administration clearance for the treatment of adults with treatment-resistant depression and is supported by a growing body of clinical evidence demonstrating its safety and efficacy.

Founded in 2003 and headquartered in Malvern, Pennsylvania, Neuronetics focuses on advancing clinical care through innovation in neurostimulation.

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