Avita Medical (NASDAQ:RCEL) Downgraded to "Sell" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Avita Medical from “hold” to “sell,” adding pressure to a stock that already has a mixed analyst outlook. The consensus rating remains “hold,” with an average target price of $7.25.
• Avita Medical shares opened at $4.61, near the lower end of their 12-month range of $3.22 to $7.12. The company has a market cap of about $141.9 million and a negative P/E ratio of -2.94.
• The company’s latest earnings showed EPS of -$0.35, in line with estimates, while revenue of $19.25 million beat expectations. Insider buying has also been notable, with Director Joseph Fralin Woody purchasing 10,000 shares in June.

Avita Medical (NASDAQ:RCEL - Get Free Report) was downgraded by analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a report released on Saturday.

A number of other research analysts have also issued reports on the stock. D. Boral Capital reiterated a "buy" rating and issued a $10.00 price objective on shares of Avita Medical in a report on Wednesday, April 8th. TD Cowen reissued a "buy" rating on shares of Avita Medical in a report on Tuesday, June 30th. Weiss Ratings restated a "sell (e+)" rating on shares of Avita Medical in a research report on Wednesday, June 24th. Finally, Lake Street Capital raised shares of Avita Medical from a "hold" rating to a "buy" rating and raised their price target for the company from $3.50 to $6.00 in a research note on Friday, May 15th. Four investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $7.25.

Avita Medical Price Performance

Shares of RCEL stock opened at $4.61 on Friday. Avita Medical has a twelve month low of $3.22 and a twelve month high of $7.12. The stock's fifty day simple moving average is $4.37 and its 200 day simple moving average is $4.31. The firm has a market capitalization of $141.88 million, a P/E ratio of -2.94 and a beta of 1.86.

Avita Medical (NASDAQ:RCEL - Get Free Report) last posted its earnings results on Thursday, May 14th. The company reported ($0.35) EPS for the quarter, meeting the consensus estimate of ($0.35). The firm had revenue of $19.25 million during the quarter, compared to the consensus estimate of $18.30 million. As a group, equities research analysts expect that Avita Medical will post -1.09 EPS for the current fiscal year.

Insider Activity at Avita Medical

In other news, Director Joseph Fralin Woody acquired 10,000 shares of Avita Medical stock in a transaction dated Tuesday, June 9th. The shares were bought at an average cost of $4.19 per share, with a total value of $41,900.00. Following the purchase, the director owned 102,761 shares in the company, valued at $430,568.59. This trade represents a 10.78% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at this hyperlink. Over the last 90 days, insiders have acquired 37,200 shares of company stock valued at $155,080. Corporate insiders own 2.24% of the company's stock.

Hedge Funds Weigh In On Avita Medical

Hedge funds and other institutional investors have recently bought and sold shares of the company. Deutsche Bank AG boosted its position in Avita Medical by 1,351.5% during the fourth quarter. Deutsche Bank AG now owns 7,896 shares of the company's stock valued at $27,000 after acquiring an additional 7,352 shares during the last quarter. Russell Investments Group Ltd. raised its position in shares of Avita Medical by 122.2% in the 4th quarter. Russell Investments Group Ltd. now owns 8,047 shares of the company's stock worth $28,000 after acquiring an additional 4,425 shares in the last quarter. Aristides Capital LLC bought a new position in shares of Avita Medical in the 4th quarter worth about $48,000. R Squared Ltd acquired a new position in shares of Avita Medical in the 1st quarter valued at about $57,000. Finally, The Manufacturers Life Insurance Company acquired a new position in shares of Avita Medical in the 2nd quarter valued at about $58,000. Institutional investors and hedge funds own 27.66% of the company's stock.

Avita Medical Company Profile

Avita Medical, Inc NASDAQ: RCEL is a regenerative medicine company focused on the development and commercialization of cell‐based therapies for acute and chronic wounds. Its flagship technology, the ReCell® Autologous Cell Harvesting Device, enables clinicians to create a suspension of a patient's own skin cells at the point of care. The system is designed to accelerate wound healing, minimize donor‐site requirements and reduce scarring for patients suffering from burns, traumatic wounds and a variety of surgical and reconstructive procedures.

Founded in 2009 and headquartered in Carlsbad, California, Avita Medical has secured regulatory clearances in key markets, including CE mark approval in the European Union and 510(k) clearance from the U.S.

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