Wall Street Zen Downgrades Avita Medical (NASDAQ:RCEL) to Sell

Key Points

• Avita Medical has been downgraded from a "hold" to a "sell" rating by Wall Street Zen, reflecting a negative outlook on the stock's performance.
• The company reported a loss of $0.38 EPS in its most recent quarterly earnings, significantly missing the consensus estimate of ($0.26).
• Institutional investors have shown increased interest in Avita Medical, with several firms making substantial adjustments to their holdings during the past quarters.

Wall Street Zen downgraded shares of Avita Medical (NASDAQ:RCEL - Free Report) from a hold rating to a sell rating in a research note published on Saturday.

A number of other equities research analysts have also recently issued reports on the stock. D. Boral Capital cut their price objective on shares of Avita Medical from $19.00 to $18.00 and set a "buy" rating for the company in a research note on Friday, August 8th. BTIG Research lowered shares of Avita Medical from a "neutral" rating to a "sell" rating and set a $3.00 price target for the company. in a report on Friday, August 8th. Two research analysts have rated the stock with a sell rating, one has given a hold rating and three have assigned a buy rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $12.40.

Avita Medical Trading Up 4.6%

Shares of Avita Medical stock traded up $0.25 during trading on Friday, reaching $5.77. The company's stock had a trading volume of 190,303 shares, compared to its average volume of 272,633. Avita Medical has a 52-week low of $3.60 and a 52-week high of $14.16. The company has a market cap of $153.64 million, a price-to-earnings ratio of -2.93 and a beta of 1.63. The firm's 50-day moving average is $5.47 and its two-hundred day moving average is $7.48. The company has a quick ratio of 1.72, a current ratio of 0.58 and a debt-to-equity ratio of 9.39.

Avita Medical (NASDAQ:RCEL - Get Free Report) last announced its quarterly earnings data on Thursday, August 7th. The company reported ($0.38) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.26) by ($0.12). Avita Medical had a negative net margin of 68.87% and a negative return on equity of 1,272.91%. The business had revenue of $18.42 million during the quarter, compared to analysts' expectations of $34.27 million. On average, sell-side analysts anticipate that Avita Medical will post -0.95 earnings per share for the current year.

Institutional Trading of Avita Medical

Several institutional investors have recently bought and sold shares of RCEL. BNP Paribas Financial Markets purchased a new stake in shares of Avita Medical during the 4th quarter valued at about $38,000. CWM LLC grew its holdings in shares of Avita Medical by 1,099.5% in the first quarter. CWM LLC now owns 4,918 shares of the company's stock valued at $40,000 after purchasing an additional 4,508 shares in the last quarter. GAMMA Investing LLC boosted its stake in Avita Medical by 688.9% during the first quarter. GAMMA Investing LLC now owns 6,374 shares of the company's stock worth $52,000 after buying an additional 5,566 shares during the period. Meeder Asset Management Inc. purchased a new position in Avita Medical during the first quarter worth $53,000. Finally, Russell Investments Group Ltd. lifted its position in shares of Avita Medical by 48.0% during the fourth quarter. Russell Investments Group Ltd. now owns 7,164 shares of the company's stock worth $92,000 after purchasing an additional 2,324 shares during the last quarter. 27.66% of the stock is owned by hedge funds and other institutional investors.

Avita Medical Company Profile

AVITA Medical, Inc, together with its subsidiaries, operates as a regenerative medicine company in the United States and internationally. The company's lead product is the RECELL System, a cell harvesting device used for the treatment of thermal burn wounds, full-thickness skin defects, and repigmentation of stable depigmented vitiligo lesions.