Neuronetics (NASDAQ:STIM) Earns Buy Rating from Analysts at BTIG Research

Key Points

• BTIG Research initiated coverage on Neuronetics with a Buy rating and a $5.00 price target, implying more than 200% upside from the current share price.
• Despite the new bullish call, the broader analyst view remains cautious: MarketBeat shows a Hold consensus rating, with two Buy ratings and one Sell rating, and an average price target of $4.00.
• Neuronetics recently beat earnings expectations, reporting a smaller-than-expected quarterly loss and slightly higher revenue, while insider and institutional ownership remain notable at 8.4% and 53.6%, respectively.

Stock analysts at BTIG Research started coverage on shares of Neuronetics (NASDAQ:STIM - Get Free Report) in a report issued on Monday, Marketbeat Ratings reports. The brokerage set a "buy" rating and a $5.00 price target on the stock. BTIG Research's price target indicates a potential upside of 208.64% from the stock's current price.

Several other research firms have also recently weighed in on STIM. Wall Street Zen upgraded Neuronetics from a "sell" rating to a "hold" rating in a research report on Sunday, July 12th. Weiss Ratings reiterated a "sell (e+)" rating on shares of Neuronetics in a research note on Thursday, June 18th. Two equities research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Neuronetics has a consensus rating of "Hold" and an average price target of $4.00.

Neuronetics Stock Performance

Shares of STIM stock opened at $1.62 on Monday. Neuronetics has a 12-month low of $0.80 and a 12-month high of $4.85. The company has a market capitalization of $112.74 million, a PE ratio of -3.00 and a beta of 1.06. The firm has a 50 day moving average price of $1.39 and a two-hundred day moving average price of $1.52. The company has a quick ratio of 1.50, a current ratio of 1.67 and a debt-to-equity ratio of 3.59.

Neuronetics (NASDAQ:STIM - Get Free Report) last posted its earnings results on Tuesday, May 5th. The company reported ($0.16) EPS for the quarter, beating the consensus estimate of ($0.17) by $0.01. The company had revenue of $34.45 million for the quarter, compared to the consensus estimate of $34.17 million. Neuronetics had a negative return on equity of 139.83% and a negative net margin of 24.48%. As a group, analysts predict that Neuronetics will post -0.46 earnings per share for the current year.

Insider Buying and Selling at Neuronetics

In related news, major shareholder Jorey Chernett bought 100,000 shares of Neuronetics stock in a transaction dated Tuesday, May 19th. The shares were bought at an average cost of $1.17 per share, with a total value of $117,000.00. Following the acquisition, the insider owned 10,553,988 shares in the company, valued at $12,348,165.96. This trade represents a 0.96% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this link. Insiders own 8.40% of the company's stock.

Institutional Investors Weigh In On Neuronetics

Several institutional investors and hedge funds have recently bought and sold shares of STIM. David J Yvars Group boosted its position in Neuronetics by 22.1% during the 4th quarter. David J Yvars Group now owns 31,230 shares of the company's stock worth $43,000 after buying an additional 5,650 shares during the period. National Bank of Canada FI increased its position in Neuronetics by 27.5% in the 3rd quarter. National Bank of Canada FI now owns 31,880 shares of the company's stock valued at $87,000 after acquiring an additional 6,880 shares during the period. Royal Bank of Canada increased its position in Neuronetics by 17.7% in the 4th quarter. Royal Bank of Canada now owns 47,233 shares of the company's stock valued at $65,000 after acquiring an additional 7,099 shares during the period. Barclays PLC raised its stake in shares of Neuronetics by 19.2% during the fourth quarter. Barclays PLC now owns 61,606 shares of the company's stock valued at $85,000 after acquiring an additional 9,941 shares during the last quarter. Finally, Squarepoint Ops LLC raised its stake in shares of Neuronetics by 20.0% during the third quarter. Squarepoint Ops LLC now owns 62,458 shares of the company's stock valued at $171,000 after acquiring an additional 10,423 shares during the last quarter. Institutional investors own 53.59% of the company's stock.

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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