Neuronetics (NASDAQ:STIM) Stock Breaks Above 50-Day Moving Average - Time to Sell?

Key Points

• Neuronetics shares rose above their 50-day moving average, trading as high as $3.05 and last at $2.70; the 50-day average is $2.49.
• Third-quarter revenue increased 12.5% year over year to $41.96 million, beating estimates, while the $0.02-per-share loss was narrower than analysts expected.
• Analysts’ consensus rating is “Moderate Buy,” with an average price target of $4.67. Major shareholder Jorey Chernett also bought 18,000 shares for about $40,860 before the earnings release.

Neuronetics, Inc. (NASDAQ:STIM - Get Free Report) shares passed above its fifty day moving average during trading on Wednesday. The stock has a fifty day moving average of $2.49 and traded as high as $3.05. Neuronetics shares last traded at $2.70, with a volume of 5,458,097 shares changing hands.

Key Neuronetics News

Here are the key news stories impacting Neuronetics this week:

• Positive Sentiment: Neuronetics reported Q3 revenue of $41.96 million, up 12.5% year over year and ahead of analyst estimates of about $40.4 million. Its net loss narrowed to $1.7 million, and its loss per share of $0.02 was better than the consensus estimate of a $0.09 loss and the year-ago loss of $0.13 per share. Neuronetics Q3 2026 results
• Positive Sentiment: Major shareholder Jorey Chernett purchased 18,000 shares for about $40,860, adding modestly to an already substantial holding. The buying may be viewed as a confidence signal, though the transaction occurred before the earnings release. Shareholder purchase report
• Neutral Sentiment: The company disclosed inducement awards for 14 non-executive employees. Equity-based awards can support hiring and retention, while potentially diluting shareholders; the announcement does not specify the award details in the provided report. Inducement grant announcement

Wall Street Analyst Weigh In

Several research firms have recently weighed in on STIM. B. Riley Financial began coverage on Neuronetics in a research report on Friday, September 11th. They set a "buy" rating for the company. Wall Street Zen upgraded Neuronetics from a "sell" rating to a "hold" rating in a research note on Sunday, July 12th. BTIG Research restated a "buy" rating and issued a $6.00 target price on shares of Neuronetics in a research note on Thursday, September 17th. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Neuronetics in a research report on Monday, September 14th. Finally, Citigroup reaffirmed a "market outperform" rating on shares of Neuronetics in a research note on Tuesday, July 21st. Four research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Neuronetics currently has an average rating of "Moderate Buy" and an average target price of $4.67.

Neuronetics Stock Up 19.5%

The firm's 50-day simple moving average is $2.49 and its 200 day simple moving average is $1.88. The company has a debt-to-equity ratio of 2.84, a quick ratio of 1.69 and a current ratio of 1.88. The stock has a market capitalization of $205.73 million, a P/E ratio of -6.14 and a beta of 1.36.

Neuronetics (NASDAQ:STIM - Get Free Report) last announced its quarterly earnings data on Wednesday, November 4th. The company reported ($0.02) earnings per share for the quarter, beating the consensus estimate of ($0.09) by $0.07. The company had revenue of $41.96 million during the quarter, compared to analysts' expectations of $40.42 million. Neuronetics had a negative return on equity of 125.11% and a negative net margin of 19.62%. As a group, research analysts expect that Neuronetics, Inc. will post -0.33 EPS for the current year.

Insider Buying and Selling at Neuronetics

In related news, major shareholder Jorey Chernett purchased 18,000 shares of the stock in a transaction on Friday, October 30th. The shares were purchased at an average price of $2.27 per share, with a total value of $40,860.00. Following the transaction, the insider directly owned 10,620,988 shares of the company's stock, valued at $24,109,642.76. This trade represents a 0.17% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 8.40% of the stock is owned by company insiders.

Institutional Investors Weigh In On Neuronetics

Several large investors have recently made changes to their positions in STIM. T3 Companies LLC bought a new stake in Neuronetics during the third quarter worth $88,000. Engineers Gate Manager LP bought a new position in shares of Neuronetics in the 2nd quarter valued at about $74,000. Squarepoint Ops LLC grew its position in shares of Neuronetics by 151.5% in the 2nd quarter. Squarepoint Ops LLC now owns 94,616 shares of the company's stock valued at $123,000 after acquiring an additional 57,000 shares during the period. Hsbc Holdings PLC bought a new position in shares of Neuronetics in the 2nd quarter valued at about $50,000. Finally, Madryn Asset Management LP acquired a new position in shares of Neuronetics during the 2nd quarter worth about $24,102,634. Institutional investors and hedge funds own 53.59% of the company's stock.

About Neuronetics

Neuronetics, Inc is a medical technology company that develops and commercializes noninvasive treatments for psychiatric and neurological disorders. Its primary product is NeuroStar TMS Therapy, which uses transcranial magnetic stimulation to deliver targeted magnetic pulses to areas of the brain associated with mood regulation.

NeuroStar TMS Therapy is cleared by the U.S. Food and Drug Administration for treating major depressive disorder in adults and adolescents, obsessive-compulsive disorder, and depression with anxious distress.

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