CeriBell (NASDAQ:CBLL) Shares Gap Up - Time to Buy?

Key Points

• CeriBell shares opened higher, rising from a previous close of $23.63 to $24.42 before trading around $23.96. The stock has a consensus “Moderate Buy” rating and an average price target of $24.40.
• Analysts remain generally optimistic, with price targets ranging from $26 to $30, although Barclays downgraded the stock to “neutral” and Weiss Ratings maintained a sell view.
• The company exceeded revenue expectations with quarterly revenue of $28.10 million but missed on earnings, reporting a $0.51-per-share loss. Insiders have also sold 391,901 shares worth about $8.5 million over the past three months.

CeriBell, Inc. (NASDAQ:CBLL - Get Free Report)'s share price gapped up prior to trading on Tuesday . The stock had previously closed at $23.63, but opened at $24.42. CeriBell shares last traded at $23.9550, with a volume of 5,977 shares changing hands.

Analyst Ratings Changes

A number of equities research analysts recently commented on CBLL shares. Canaccord Genuity Group raised their price objective on shares of CeriBell from $25.00 to $26.00 and gave the stock a "buy" rating in a report on Tuesday, August 11th. Raymond James Financial reaffirmed a "strong-buy" rating and issued a $29.00 target price on shares of CeriBell in a research note on Thursday, September 3rd. Barclays raised CeriBell to a "neutral" rating in a research note on Tuesday, August 18th. BTIG Research restated a "buy" rating and issued a $30.00 price target on shares of CeriBell in a report on Friday. Finally, Weiss Ratings cut CeriBell from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Friday, August 28th. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $24.40.

CeriBell Stock Down 1.1%

The stock's fifty day moving average price is $21.20 and its 200-day moving average price is $19.67. The company has a quick ratio of 8.79, a current ratio of 9.18 and a debt-to-equity ratio of 0.16. The company has a market capitalization of $923.73 million, a price-to-earnings ratio of -13.64 and a beta of 0.95.

CeriBell (NASDAQ:CBLL - Get Free Report) last released its earnings results on Monday, August 10th. The company reported ($0.51) earnings per share for the quarter, missing analysts' consensus estimates of ($0.47) by ($0.04). CeriBell had a negative net margin of 64.73% and a negative return on equity of 44.85%. The business had revenue of $28.10 million during the quarter, compared to the consensus estimate of $27.28 million. On average, sell-side analysts predict that CeriBell, Inc. will post -1.96 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CEO Xingjuan Chao sold 39,540 shares of the company's stock in a transaction dated 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 in the company, valued at approximately $18,880,570.51. This represents a 4.90% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CFO Scott Blumberg sold 33,512 shares of the stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $25.03, for a total value of $838,805.36. Following the transaction, the chief financial officer directly owned 148,121 shares of the company's stock, valued at $3,707,468.63. This trade represents a 18.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 391,901 shares of company stock worth $8,542,455 over the last three months. Company insiders own 17.70% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the stock. Squarepoint Ops LLC acquired a new stake in shares of CeriBell in the 2nd quarter valued at approximately $638,000. California State Teachers Retirement System increased its holdings in CeriBell by 409.5% during the second quarter. California State Teachers Retirement System now owns 7,352 shares of the company's stock worth $143,000 after buying an additional 5,909 shares during the last quarter. Wellington Management Group LLP increased its holdings 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 last quarter. Formula Growth Ltd. bought a new stake in CeriBell during the second quarter worth $603,000. Finally, Bank of America Corp DE acquired a new stake in CeriBell in the second quarter valued at $4,619,000.

About CeriBell

Ceribell, Inc NASDAQ: CBLL is a medical technology company focused on improving the detection and management of seizures and other neurological conditions in hospital settings. Its products are designed to make electroencephalography (EEG) more accessible at the point of care, particularly in emergency departments, intensive care units and other settings where conventional EEG testing may be delayed or difficult to obtain.

The company's primary offering is the Ceribell Rapid Response EEG system, which combines a portable EEG recorder, a simplified electrode headband and software for acquiring and reviewing brain-wave data.

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