CeriBell (NASDAQ:CBLL) Shares Gap Down Following Weak Earnings

Key Points

• CeriBell shares opened sharply lower after quarterly EPS of ($0.55) missed estimates of ($0.51); revenue of $29.34 million slightly beat forecasts.
• Analysts’ average rating is Moderate Buy, with an average price target of $27; recent recommendations range from Strong Buy to Sell.
• Company insiders sold 174,905 shares worth about $4.31 million during the last quarter, while insiders retain 17.7% of the stock.

CeriBell, Inc. (NASDAQ:CBLL - Get Free Report)'s stock price gapped down before the market opened on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $28.27, but opened at $22.05. CeriBell shares last traded at $27.6950, with a volume of 230,483 shares traded.

The company reported ($0.55) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.51) by ($0.04). CeriBell had a negative net margin of 64.73% and a negative return on equity of 44.85%. The company had revenue of $29.34 million during the quarter, compared to analyst estimates of $29.18 million.

Analyst Ratings Changes

A number of analysts recently weighed in on the stock. BTIG Research restated a "buy" rating on shares of CeriBell in a research note on Wednesday. Barclays upgraded shares of CeriBell to a "neutral" rating in a report on Tuesday, August 18th. Raymond James Financial reissued a "strong-buy" rating and issued a $29.00 price objective on shares of CeriBell in a research report on Thursday, September 3rd. Weiss Ratings upgraded shares of CeriBell from a "sell (e+)" rating to a "sell (d-)" rating in a report on Friday, October 16th. Finally, Canaccord Genuity Group lifted their price objective on shares of CeriBell from $25.00 to $26.00 and gave the stock a "buy" rating in a research report on Tuesday, August 11th. One research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $27.00.

Insiders Place Their Bets

In other CeriBell news, CTO Raymond Woo sold 4,887 shares of the stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $24.33, for a total value of $118,900.71. Following the transaction, the chief technology officer directly owned 203,118 shares in the company, valued at $4,941,860.94. This represents a 2.35% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Xingjuan Chao sold 39,540 shares of the business's stock in a transaction that occurred on Wednesday, September 2nd. The stock was sold at an average price of $24.61, for a total transaction of $973,079.40. Following the sale, the chief executive officer owned 767,191 shares of the company's stock, valued at $18,880,570.51. This represents a 4.90% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 174,905 shares of company stock worth $4,312,995. 17.70% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On CeriBell

Several large investors have recently bought and sold shares of the stock. Squarepoint Ops LLC acquired a new stake in shares of CeriBell in the 2nd quarter valued at about $638,000. Wellington Management Group LLP increased its position in CeriBell by 5.5% during the second quarter. Wellington Management Group LLP now owns 87,698 shares of the company's stock worth $1,706,000 after buying an additional 4,572 shares during the period. Formula Growth Ltd. acquired a new position in CeriBell during the second quarter worth approximately $603,000. Bank of America Corp DE purchased a new stake in CeriBell in the second quarter valued at approximately $4,619,000. Finally, PDT Partners LLC purchased a new stake in CeriBell in the second quarter valued at approximately $1,026,000.

CeriBell Price Performance

The firm has a market capitalization of $1.05 billion, a price-to-earnings ratio of -15.56 and a beta of 0.86. The company has a fifty day moving average price of $25.06 and a two-hundred day moving average price of $20.85. The company has a quick ratio of 8.79, a current ratio of 9.18 and a debt-to-equity ratio of 0.16.

About CeriBell

CeriBell, Inc is a medical technology company that develops artificial intelligence-enabled neurological diagnostic products. Its technology is designed to help healthcare professionals rapidly identify and monitor seizures, including nonconvulsive seizures that may be difficult to recognize through a standard clinical examination.

The company's primary product is the Ceribell Rapid Response EEG system, a portable electroencephalography platform that combines a wireless EEG recorder, a simplified disposable headband, and software-based analysis tools.

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