Insider Buying: Neuronetics (NASDAQ:STIM) Major Shareholder Buys $238,955.52 in Stock

Key Points

• Major shareholder Jorey Chernett bought about 1.76 million Neuronetics shares over Mar 17–20 (including 169,472 shares on Mar 20 for $238,955.52), spending roughly $2.27 million and increasing his holding to 8,743,276 shares (a 1.98% rise).
• The stock jumped 11.4% to $1.62 intraday after the disclosures, but Neuronetics remains unprofitable with negative margins, a market cap near $112 million, and mixed analyst ratings with a consensus price target of $3.00.

Neuronetics, Inc. (NASDAQ:STIM - Get Free Report) major shareholder Jorey Chernett acquired 169,472 shares of the stock in a transaction dated Friday, March 20th. The shares were purchased at an average cost of $1.41 per share, with a total value of $238,955.52. Following the completion of the purchase, the insider owned 8,743,276 shares of the company's stock, valued at approximately $12,328,019.16. The trade was a 1.98% increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Major shareholders that own at least 10% of a company's stock are required to disclose their transactions with the SEC.

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

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

Neuronetics Trading Up 11.4%

Shares of STIM traded up $0.17 during mid-day trading on Monday, hitting $1.62. 813,658 shares of the company's stock traded hands, compared to its average volume of 2,085,627. The company has a quick ratio of 1.87, a current ratio of 2.02 and a debt-to-equity ratio of 2.51. The firm has a market capitalization of $111.89 million, a P/E ratio of -2.74 and a beta of 0.87. The business's 50-day moving average price is $1.60 and its 200-day moving average price is $2.01. Neuronetics, Inc. has a 1 year low of $0.80 and a 1 year high of $5.05.

Neuronetics (NASDAQ:STIM - Get Free Report) last released its quarterly earnings results on Tuesday, March 17th. The company reported ($0.10) earnings per share for the quarter, beating the consensus estimate of ($0.12) by $0.02. The business had revenue of $41.78 million for the quarter, compared to analysts' expectations of $40.84 million. Neuronetics had a negative net margin of 26.15% and a negative return on equity of 121.26%. As a group, sell-side analysts forecast that Neuronetics, Inc. will post -1.13 EPS for the current fiscal year.

Institutional Trading of Neuronetics

A number of hedge funds and other institutional investors have recently modified their holdings of STIM. Presidio Capital Management LLC purchased a new position in Neuronetics during the 3rd quarter valued at about $32,000. Intrua Financial LLC purchased a new stake in Neuronetics in the third quarter worth about $33,000. Sherbrooke Park Advisers LLC bought a new position in shares of Neuronetics during the third quarter valued at approximately $33,000. Police & Firemen s Retirement System of New Jersey bought a new position in shares of Neuronetics during the second quarter valued at approximately $34,000. Finally, Raymond James Financial Inc. purchased a new position in shares of Neuronetics during the second quarter valued at approximately $37,000. 53.59% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

STIM has been the topic of several research analyst reports. Weiss Ratings reiterated a "sell (e+)" rating on shares of Neuronetics in a research report on Thursday, January 22nd. Wall Street Zen lowered shares of Neuronetics from a "hold" rating to a "sell" rating in a report on Saturday. Finally, Canaccord Genuity Group cut their price objective on Neuronetics from $7.00 to $3.00 and set a "buy" rating on the stock in a research report on Thursday. One analyst has rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Neuronetics presently has an average rating of "Hold" and a consensus 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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