Insider Buying: Neuronetics (NASDAQ:STIM) Major Shareholder Buys 100,000 Shares of Stock

Key Points

• Major insider buy: Jorey Chernett acquired 100,000 shares of Neuronetics (NASDAQ:STIM) on April 20 at an average price of $1.58, raising their direct stake to about 9.88 million shares (a ~1.02% increase); this follows a series of large purchases in March, bringing recent insider buys to roughly 1.86 million shares.
• Market and analyst context: STIM shares rose about 5.7% to $1.59 on the report, the company has a market cap near $110 million and reported negative EPS, and analysts have a consensus "Hold" rating with an average price target of $3.00.

Neuronetics, Inc. (NASDAQ:STIM - Get Free Report) major shareholder Jorey Chernett acquired 100,000 shares of Neuronetics stock in a transaction on Monday, April 20th. The stock was purchased at an average cost of $1.58 per share, with a total value of $158,000.00. Following the purchase, the insider directly owned 9,878,988 shares of the company's stock, valued at approximately $15,608,801.04. This trade represents a 1.02% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is accessible through this link. Major shareholders that own more than 10% of a company's stock are required to disclose their sales and purchases with the SEC.

Jorey Chernett also recently made the following trade(s):

• On Friday, March 20th, Jorey Chernett acquired 169,472 shares of Neuronetics stock. The stock was purchased at an average cost of $1.41 per share, with a total value of $238,955.52.
• On Thursday, March 19th, Jorey Chernett acquired 450,000 shares of Neuronetics stock. The stock was purchased at an average cost of $1.33 per share, with a total value of $598,500.00.
• On Wednesday, March 18th, Jorey Chernett bought 607,400 shares of Neuronetics stock. The stock was bought at an average price of $1.35 per share, for a total transaction of $819,990.00.
• On Tuesday, March 17th, Jorey Chernett bought 531,000 shares of Neuronetics stock. The stock was bought at an average price of $1.16 per share, for a total transaction of $615,960.00.

Neuronetics Stock Up 5.7%

Shares of STIM stock traded up $0.09 during trading hours on Wednesday, reaching $1.59. The company had a trading volume of 1,422,167 shares, compared to its average volume of 2,129,640. The business has a fifty day simple moving average of $1.41 and a 200-day simple moving average of $1.78. The company has a market cap of $110.28 million, a price-to-earnings ratio of -2.69 and a beta of 0.87. Neuronetics, Inc. has a 12 month low of $0.80 and a 12 month high of $4.85. The company has a debt-to-equity ratio of 2.51, a current ratio of 2.02 and a quick ratio of 1.87.

Neuronetics (NASDAQ:STIM - Get Free Report) last issued its quarterly earnings results on Tuesday, March 17th. The company reported ($0.10) EPS for the quarter, topping analysts' consensus estimates of ($0.12) by $0.02. The business had revenue of $41.78 million for the quarter, compared to analyst estimates of $40.84 million. Neuronetics had a negative return on equity of 121.26% and a negative net margin of 26.15%. On average, research analysts expect that Neuronetics, Inc. will post -0.49 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Neuronetics

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Caitong International Asset Management Co. Ltd grew its position in Neuronetics by 2,667.0% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 69,756 shares of the company's stock worth $96,000 after buying an additional 67,235 shares in the last quarter. Aristides Capital LLC purchased a new position in Neuronetics during the fourth quarter worth about $188,000. Invesco Ltd. grew its position in Neuronetics by 80.0% during the fourth quarter. Invesco Ltd. now owns 58,940 shares of the company's stock worth $81,000 after buying an additional 26,194 shares in the last quarter. XTX Topco Ltd grew its position in Neuronetics by 992.6% during the fourth quarter. XTX Topco Ltd now owns 314,194 shares of the company's stock worth $434,000 after buying an additional 285,438 shares in the last quarter. Finally, Caption Management LLC grew its position in Neuronetics by 571.4% during the fourth quarter. Caption Management LLC now owns 92,501 shares of the company's stock worth $128,000 after buying an additional 78,723 shares in the last quarter. 53.59% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

STIM has been the subject of a number of recent research reports. Canaccord Genuity Group decreased their target price on Neuronetics from $7.00 to $3.00 and set a "buy" rating for the company in a research report on Thursday, March 19th. Wall Street Zen upgraded Neuronetics from a "sell" rating to a "hold" rating in a research report on Saturday. Finally, Weiss Ratings reiterated a "sell (e+)" rating on shares of Neuronetics in a research report on Thursday, January 22nd. One investment analyst has rated the stock with a Buy rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $3.00.

Neuronetics Company Profile

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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