NeuroPace (NASDAQ:NPCE) Shares Down 5.8% - What's Next?

Key Points

• NeuroPace shares fell 5.8% on Tuesday, trading as low as $16.23 on volume well below average. The stock had closed at $17.12 in the prior session.
• Analyst sentiment remains mixed but leans positive: Wells Fargo upgraded the stock to strong-buy and HC Wainwright lifted its price target to $20, while Weiss Ratings reiterated a sell rating. MarketBeat shows a consensus rating of Moderate Buy with an average target price of $18.83.
• The company recently beat quarterly earnings expectations, reporting EPS of -$0.13 versus the expected -$0.19 and revenue of $22.0 million versus $21.65 million expected. Despite the beat, NeuroPace still posted negative margins and the stock carries a relatively high debt-to-equity ratio of 4.08.

Shares of NeuroPace, Inc. (NASDAQ:NPCE - Get Free Report) traded down 5.8% on Tuesday . The company traded as low as $16.23 and last traded at $16.1230. 56,448 shares traded hands during trading, a decline of 72% from the average session volume of 200,108 shares. The stock had previously closed at $17.12.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on NPCE shares. Wells Fargo & Company upgraded shares of NeuroPace to a "strong-buy" rating in a research report on Wednesday, March 18th. HC Wainwright increased their target price on shares of NeuroPace from $19.00 to $20.00 and gave the company a "buy" rating in a research report on Friday, May 15th. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of NeuroPace in a research note on Wednesday, June 24th. Two equities research analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $18.83.

NeuroPace Stock Performance

The company has a quick ratio of 4.35, a current ratio of 5.38 and a debt-to-equity ratio of 4.08. The stock has a fifty day moving average of $16.35 and a 200-day moving average of $15.63. The stock has a market cap of $546.80 million, a PE ratio of -24.72 and a beta of 1.88.

NeuroPace (NASDAQ:NPCE - Get Free Report) last posted its quarterly earnings data on Tuesday, May 12th. The company reported ($0.13) EPS for the quarter, beating the consensus estimate of ($0.19) by $0.06. NeuroPace had a negative return on equity of 108.20% and a negative net margin of 21.67%.The firm had revenue of $22.00 million during the quarter, compared to the consensus estimate of $21.65 million. On average, equities analysts forecast that NeuroPace, Inc. will post -0.54 EPS for the current year.

Hedge Funds Weigh In On NeuroPace

Several institutional investors have recently bought and sold shares of NPCE. Divisadero Street Capital Management LP boosted its holdings in shares of NeuroPace by 20.9% in the third quarter. Divisadero Street Capital Management LP now owns 292,792 shares of the company's stock valued at $3,019,000 after acquiring an additional 50,672 shares in the last quarter. Jump Financial LLC lifted its position in NeuroPace by 223.6% in the second quarter. Jump Financial LLC now owns 40,474 shares of the company's stock valued at $451,000 after purchasing an additional 27,965 shares during the period. Rhumbline Advisers boosted its holdings in NeuroPace by 114.5% in the 2nd quarter. Rhumbline Advisers now owns 36,956 shares of the company's stock valued at $412,000 after purchasing an additional 19,729 shares in the last quarter. Man Group plc increased its position in NeuroPace by 9.7% during the 4th quarter. Man Group plc now owns 21,626 shares of the company's stock worth $334,000 after purchasing an additional 1,920 shares during the period. Finally, Price T Rowe Associates Inc. MD increased its position in NeuroPace by 23.0% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 14,836 shares of the company's stock worth $230,000 after purchasing an additional 2,778 shares during the period. 78.83% of the stock is owned by institutional investors and hedge funds.

About NeuroPace

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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