Brainsway (NASDAQ:BWAY) Shares Down 6.8% - Here's Why

Key Points

• Brainsway shares fell 6.8% on Monday, trading as low as $13.92 before closing at $14.04. Trading volume was well below normal, with about 30,912 shares changing hands versus an average of 165,934.
• Analyst sentiment remains mixed but generally positive: one firm downgraded the stock to hold, while others reiterated or upgraded to buy. Overall, Brainsway has a consensus rating of Moderate Buy with an average target price of $16.00.
• The company recently reported better-than-expected quarterly results, posting EPS of $0.12 versus the $0.05 estimate and revenue of $15.53 million versus $14.63 million expected. Analysts currently forecast full-year EPS of $0.33.

Brainsway Ltd. Sponsored ADR (NASDAQ:BWAY - Get Free Report) shares dropped 6.8% on Monday . The stock traded as low as $13.92 and last traded at $14.0350. 30,912 shares changed hands during trading, a decline of 81% from the average session volume of 165,934 shares. The stock had previously closed at $15.06.

Wall Street Analyst Weigh In

BWAY has been the subject of a number of research reports. Zacks Research downgraded Brainsway from a "strong-buy" rating to a "hold" rating in a research note on Monday, May 11th. Weiss Ratings upgraded Brainsway from a "hold (c)" rating to a "buy (b-)" rating in a research report on Friday, April 24th. Wall Street Zen upgraded Brainsway from a "hold" rating to a "buy" rating in a research report on Saturday, June 13th. Finally, HC Wainwright reissued a "buy" rating and issued a $17.00 price target on shares of Brainsway in a report on Thursday, July 2nd. Three investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat.com, Brainsway currently has a consensus rating of "Moderate Buy" and an average target price of $16.00.

Brainsway Stock Down 6.3%

The firm's 50 day simple moving average is $15.20 and its 200 day simple moving average is $13.55. The company has a market cap of $566.07 million, a price-to-earnings ratio of 40.74 and a beta of 1.22.

Brainsway (NASDAQ:BWAY - Get Free Report) last issued its quarterly earnings data on Wednesday, May 13th. The company reported $0.12 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.05 by $0.07. Brainsway had a return on equity of 12.28% and a net margin of 15.68%.The business had revenue of $15.53 million during the quarter, compared to the consensus estimate of $14.63 million. Analysts anticipate that Brainsway Ltd. Sponsored ADR will post 0.33 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. Harel Insurance Investments & Financial Services Ltd. acquired a new position in shares of Brainsway during the first quarter valued at $40,000. Ballast Advisors LLC acquired a new stake in Brainsway in the first quarter worth about $55,000. Raymond James Financial Inc. acquired a new stake in Brainsway in the second quarter worth about $85,000. Bank of America Corp DE acquired a new stake in Brainsway in the third quarter worth about $107,000. Finally, Royal Bank of Canada grew its position in Brainsway by 1,145.9% in the 4th quarter. Royal Bank of Canada now owns 8,410 shares of the company's stock valued at $160,000 after buying an additional 7,735 shares in the last quarter. Institutional investors own 30.11% of the company's stock.

Brainsway Company Profile

Brainsway Ltd is a medical device company specializing in non-invasive neuromodulation therapies. Publicly traded on the NASDAQ under the symbol BWAY, the company develops and commercializes deep transcranial magnetic stimulation (Deep TMS) systems designed to treat a range of neuropsychiatric and neurological disorders. Brainsway's technology aims to offer an alternative or complement to traditional pharmacological therapies by targeting precise brain regions with its patented coil designs.

The company's flagship Deep TMS platform utilizes proprietary H-coil arrays engineered to reach deeper cortical structures than conventional TMS devices.

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