Neonode (NASDAQ:NEON) Stock Price Passes Above 200 Day Moving Average After Earnings Miss

Key Points

• Neonode Inc.'s share price surpassed its 200-day moving average following an earnings report, despite posting a loss per share of ($0.12), which missed the consensus estimate by ($0.02).
• The company experienced a negative return on equity of 38.24% and a net margin of 317.26%, while generating revenue of $0.60 million, slightly exceeding analyst expectations.
• Hedge funds have recently increased their holdings in Neonode, with institutional investors owning 11.63% of the stock, reflecting growing interest despite a downgrade in its rating from "hold" to "sell" by Wall Street Zen.

Neonode Inc. (NASDAQ:NEON - Get Free Report)'s stock price crossed above its 200-day moving average during trading on Thursday following a stronger than expected earnings report. The stock has a 200-day moving average of $13.83 and traded as high as $23.00. Neonode shares last traded at $21.56, with a volume of 199,204 shares.

The electronics maker reported ($0.12) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.10) by ($0.02). The business had revenue of $0.60 million during the quarter, compared to the consensus estimate of $0.57 million. Neonode had a negative return on equity of 40.64% and a negative net margin of 241.38%.

Wall Street Analyst Weigh In

Separately, Wall Street Zen cut Neonode from a "hold" rating to a "sell" rating in a research note on Thursday, May 22nd. One equities research analyst has rated the stock with a Buy rating, Based on data from MarketBeat.com, the company presently has an average rating of "Buy" and a consensus target price of $16.50.

Institutional Trading of Neonode

Several large investors have recently bought and sold shares of NEON. Geode Capital Management LLC lifted its holdings in shares of Neonode by 87.6% during the second quarter. Geode Capital Management LLC now owns 269,840 shares of the electronics maker's stock valued at $6,882,000 after purchasing an additional 125,970 shares during the last quarter. Northern Trust Corp lifted its position in Neonode by 654.4% in the 4th quarter. Northern Trust Corp now owns 158,709 shares of the electronics maker's stock valued at $1,306,000 after acquiring an additional 137,671 shares in the last quarter. Goldman Sachs Group Inc. bought a new position in Neonode in the 1st quarter valued at approximately $393,000. Jane Street Group LLC lifted its position in Neonode by 137.1% in the 1st quarter. Jane Street Group LLC now owns 47,320 shares of the electronics maker's stock valued at $385,000 after acquiring an additional 27,358 shares in the last quarter. Finally, OMERS ADMINISTRATION Corp bought a new position in Neonode in the 1st quarter valued at approximately $234,000. 11.63% of the stock is owned by institutional investors.

Neonode Stock Performance

The firm has a market capitalization of $370.23 million, a P/E ratio of -30.85 and a beta of 0.77. The firm has a 50-day moving average of $22.87 and a 200-day moving average of $14.10.

Neonode Company Profile

Neonode Inc, together with its subsidiaries, develops optical sensing solutions for contactless touch, touch, and gesture sensing in the United States, Japan, South Korea, Germany, Switzerland, France, Sweden, China, and internationally. It also offers software solutions for machine perception to detect and track persons and objects in video streams from cameras and other types of imagers.