Neuronetics (NASDAQ:STIM) Trading Down 2.8% - Here's What Happened

Key Points

• Shares fell 2.8% to about $1.39 midday on Wednesday with ~1.81M shares traded (down 22% vs. average); market cap is roughly $96.7M and the 50-/200‑day moving averages are $1.41 and $1.82.
• Analysts have cut targets and shifted ratings — Canaccord lowered its price target from $7 to $3 (retaining a Buy), others have moved to Sell, and the consensus rating is currently Hold with an average target of $3.00.
• The company remains unprofitable (quarterly EPS -$0.10, negative net margin -26.15% and ROE -121.26%) with debt/equity of 2.51, while insiders have been net buyers over the last 90 days (1.757M shares bought vs. 183k sold) despite some individual sales and purchases.

Neuronetics, Inc. (NASDAQ:STIM - Get Free Report)'s share price was down 2.8% during mid-day trading on Wednesday . The company traded as low as $1.3650 and last traded at $1.39. Approximately 1,808,719 shares were traded during mid-day trading, a decline of 22% from the average daily volume of 2,318,952 shares. The stock had previously closed at $1.43.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on STIM shares. Canaccord Genuity Group dropped their price target on shares of Neuronetics from $7.00 to $3.00 and set a "buy" rating on the stock in a research note on Thursday, March 19th. Wall Street Zen cut shares of Neuronetics from a "hold" rating to a "sell" rating in a research note on Saturday, March 21st. Finally, Weiss Ratings reiterated a "sell (e+)" rating on shares of Neuronetics in a research note on Thursday, January 22nd. One equities research analyst has rated the stock with a Buy rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $3.00.

Neuronetics Stock Down 2.8%

The company has a debt-to-equity ratio of 2.51, a quick ratio of 1.87 and a current ratio of 2.02. The company's fifty day moving average is $1.41 and its 200-day moving average is $1.82. The company has a market capitalization of $96.72 million, a PE ratio of -2.36 and a beta of 0.87.

Neuronetics (NASDAQ:STIM - Get Free Report) last announced its quarterly earnings data on Tuesday, March 17th. The company reported ($0.10) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.12) by $0.02. The business had revenue of $41.78 million during the quarter, compared to analyst estimates 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, analysts predict that Neuronetics, Inc. will post -1.13 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Keith J. Sullivan sold 46,289 shares of Neuronetics stock in a transaction on Thursday, March 19th. The stock was sold at an average price of $1.34, for a total transaction of $62,027.26. Following the completion of the sale, the director directly owned 1,590,924 shares in the company, valued at approximately $2,131,838.16. This trade represents a 2.83% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, major shareholder Jorey Chernett bought 169,472 shares of the firm's stock in a transaction dated Friday, March 20th. The shares were acquired at an average price of $1.41 per share, with a total value of $238,955.52. Following the completion of the transaction, 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 disclosure for this purchase is available in the SEC filing. Over the last 90 days, insiders purchased 1,757,872 shares of company stock valued at $2,273,406 and sold 183,032 shares valued at $269,588. 8.70% of the stock is owned by company insiders.

Institutional Trading of Neuronetics

Several institutional investors and hedge funds have recently made changes to their positions in the business. Presidio Capital Management LLC purchased a new stake in shares of Neuronetics during the third quarter worth about $32,000. Intrua Financial LLC acquired a new position in Neuronetics in the third quarter valued at approximately $33,000. Sherbrooke Park Advisers LLC acquired a new position in Neuronetics in the third quarter valued at approximately $33,000. Raymond James Financial Inc. acquired a new position in Neuronetics in the second quarter valued at approximately $37,000. Finally, Caption Management LLC acquired a new position in Neuronetics in the third quarter valued at approximately $38,000. 53.59% of the stock is currently owned by institutional investors.

About Neuronetics

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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