NeuroPace (NASDAQ:NPCE) Sets New 12-Month High - Still a Buy?

Key Points

• 52-week high: Shares of NeuroPace hit a new 52-week high of $19.21 (last ~ $18.92) and carry a MarketBeat consensus rating of Moderate Buy with an average target of $18.67 amid mixed analyst opinions (2 Strong Buy, 4 Buy, 1 Hold, 1 Sell).
• Earnings beat but still unprofitable: Q results topped estimates (EPS -$0.08 vs -$0.14; revenue $26.59M vs $24.79M) yet the company remains unprofitable (net margin -21.47%, ROE -105.67%) and analysts expect FY EPS of about -0.51.
• Financial and ownership profile: NeuroPace shows strong liquidity (quick ratio 4.33, current ratio 5.28) but high leverage (debt/equity 3.09), a market cap of ~$655M, and heavy institutional ownership (~78.83%).

Shares of NeuroPace, Inc. (NASDAQ:NPCE - Get Free Report) hit a new 52-week high during trading on Thursday . The stock traded as high as $19.21 and last traded at $18.9240, with a volume of 118178 shares trading hands. The stock had previously closed at $18.12.

Analysts Set New Price Targets

A number of analysts have recently issued reports on the stock. HC Wainwright raised their price target on shares of NeuroPace from $18.00 to $19.00 and gave the company a "buy" rating in a report on Tuesday, January 27th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of NeuroPace in a report on Friday, March 27th. UBS Group reaffirmed a "buy" rating on shares of NeuroPace in a report on Wednesday, January 14th. Wall Street Zen downgraded shares of NeuroPace from a "buy" rating to a "hold" rating in a report on Sunday, March 15th. Finally, Wells Fargo & Company raised shares of NeuroPace to a "strong-buy" rating in a report on Wednesday, March 18th. Two investment analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $18.67.

NeuroPace Stock Performance

The company has a quick ratio of 4.33, a current ratio of 5.28 and a debt-to-equity ratio of 3.09. The company has a market cap of $654.90 million, a PE ratio of -29.23 and a beta of 1.92. The business's fifty day moving average is $14.81 and its 200-day moving average is $14.81.

NeuroPace (NASDAQ:NPCE - Get Free Report) last posted its quarterly earnings data on Tuesday, March 3rd. The company reported ($0.08) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.14) by $0.06. The company had revenue of $26.59 million for the quarter, compared to the consensus estimate of $24.79 million. NeuroPace had a negative net margin of 21.47% and a negative return on equity of 105.67%. As a group, research analysts predict that NeuroPace, Inc. will post -0.51 EPS for the current fiscal year.

Hedge Funds Weigh In On NeuroPace

Large investors have recently added to or reduced their stakes in the company. Legal & General Group Plc lifted its holdings in NeuroPace by 86.0% during the second quarter. Legal & General Group Plc now owns 2,679 shares of the company's stock valued at $30,000 after purchasing an additional 1,239 shares in the last quarter. Quantbot Technologies LP purchased a new position in NeuroPace during the second quarter valued at approximately $35,000. Quarry LP lifted its holdings in NeuroPace by 94.9% during the third quarter. Quarry LP now owns 3,845 shares of the company's stock valued at $40,000 after purchasing an additional 1,872 shares in the last quarter. SG Americas Securities LLC purchased a new position in NeuroPace during the fourth quarter valued at approximately $118,000. Finally, New York State Common Retirement Fund lifted its holdings in NeuroPace by 755.6% during the fourth quarter. New York State Common Retirement Fund now owns 7,700 shares of the company's stock valued at $119,000 after purchasing an additional 6,800 shares in the last quarter. Hedge funds and other institutional investors own 78.83% of the company's stock.

NeuroPace Company Profile

NeuroPace, Inc is a medical device company based in Mountain View, California, that develops innovative neuromodulation systems for the treatment of neurological disorders. Founded in the late 1990s out of research at Stanford University, the company's mission centers on delivering closed-loop, “smart” therapies that monitor and respond to electrical activity in the brain. In 2020, NeuroPace completed its initial public offering and now trades on the NASDAQ under the ticker NPCE.

The company's flagship product, the RNS® System, is an implantable device designed for adults with medically refractory focal epilepsy.

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