Neuronetics (NASDAQ:STIM) Stock Rating Upgraded by Wall Street Zen

Key Points

• Wall Street Zen upgraded Neuronetics (NASDAQ:STIM) from "sell" to "hold", leaving the stock with an overall MarketBeat consensus of "Hold" and an average target price of $3.00 amid mixed broker views.
• In its latest quarter Neuronetics reported EPS of ($0.10) beating estimates and revenue of $41.78M, but the company remains unprofitable with a negative ROE and net margin and analysts expect about ($1.13) EPS for the fiscal year.
• Major insider buying: shareholder Jorey Chernett purchased 607,400 shares at $1.35 (~$820K), boosting insider ownership (insiders bought ~1.76M shares and own 8.70% overall) which may signal confidence despite recent director sales.

Neuronetics (NASDAQ:STIM - Get Free Report) was upgraded by investment analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a research report issued on Saturday.

Several other brokerages have also issued reports on STIM. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Neuronetics in a research report on Thursday, January 22nd. Canaccord Genuity Group reduced their target price on Neuronetics from $7.00 to $3.00 and set a "buy" rating on the stock in a research report on Thursday, March 19th. One equities research analyst has rated the stock with a Buy rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Neuronetics currently has an average rating of "Hold" and an average target price of $3.00.

Neuronetics Trading Up 1.4%

Shares of NASDAQ STIM opened at $1.42 on Friday. The company has a debt-to-equity ratio of 2.51, a current ratio of 2.02 and a quick ratio of 1.87. The stock has a market capitalization of $98.80 million, a P/E ratio of -2.41 and a beta of 0.87. Neuronetics has a 1-year low of $0.80 and a 1-year high of $4.85. The business has a fifty day moving average price of $1.40 and a 200 day moving average price of $1.81.

Neuronetics (NASDAQ:STIM - Get Free Report) last issued its quarterly earnings data on Tuesday, March 17th. The company reported ($0.10) earnings per share for the quarter, topping analysts' consensus estimates of ($0.12) by $0.02. The firm had revenue of $41.78 million during the quarter, compared to analysts' expectations of $40.84 million. Neuronetics had a negative return on equity of 121.26% and a negative net margin of 26.15%. Equities research analysts expect that Neuronetics will post -1.13 EPS for the current fiscal year.

Insider Transactions at Neuronetics

In other news, major shareholder Jorey Chernett acquired 607,400 shares of the business's stock in a transaction dated Wednesday, March 18th. The shares were acquired at an average cost of $1.35 per share, with a total value of $819,990.00. Following the completion of the acquisition, the insider owned 8,123,804 shares of the company's stock, valued at approximately $10,967,135.40. This trade represents a 8.08% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this link. Also, Director Keith J. Sullivan sold 46,289 shares of the stock in a transaction dated Thursday, March 19th. The shares were sold at an average price of $1.34, for a total value of $62,027.26. Following the completion of the transaction, the director directly owned 1,590,924 shares in the company, valued at $2,131,838.16. This represents a 2.83% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders bought 1,757,872 shares of company stock worth $2,273,406 and sold 183,032 shares worth $269,588. 8.70% of the stock is currently owned by corporate insiders.

Institutional Trading of Neuronetics

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Presidio Capital Management LLC acquired a new stake in Neuronetics during the third quarter worth about $32,000. Intrua Financial LLC acquired a new stake in Neuronetics during the third quarter worth about $33,000. Sherbrooke Park Advisers LLC acquired a new stake in Neuronetics during the third quarter worth about $33,000. Raymond James Financial Inc. acquired a new stake in Neuronetics during the second quarter worth about $37,000. Finally, Caption Management LLC acquired a new stake in Neuronetics during the third quarter worth about $38,000. 53.59% of the stock is owned by institutional investors and hedge funds.

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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