Profound Medical (NASDAQ:PROF) Shares Cross Above Fifty Day Moving Average - Should You Sell?

Key Points

• Profound Medical shares rose above their 50-day moving average, reaching $6.63 and last trading at $6.57, compared with a 50-day average of $6.23.
• Analyst views are mixed, but the stock has a consensus “Moderate Buy” rating and an average price target of $11.50; Raymond James issued a “Strong Buy” rating with an $11 target.
• The company reported weaker-than-expected quarterly results, including an EPS loss of $0.26 versus estimates of $0.22 and revenue of $2.48 million versus expectations of $4.75 million, while maintaining deeply negative profitability metrics.

Shares of Profound Medical (NASDAQ:PROF - Get Free Report) crossed above its 50 day moving average during trading on Friday. The stock has a 50 day moving average of $6.23 and traded as high as $6.63. Profound Medical shares last traded at $6.57, with a volume of 475,434 shares trading hands.

Analyst Ratings Changes

Several research firms have recently issued reports on PROF. Wall Street Zen upgraded shares of Profound Medical from a "sell" rating to a "hold" rating in a report on Saturday, October 10th. Weiss Ratings cut shares of Profound Medical from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Friday, October 23rd. Finally, Raymond James Financial upgraded shares of Profound Medical from an "outperform" rating to a "strong-buy" rating and set a $11.00 price target on the stock in a report on Monday, July 27th. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $11.50.

Profound Medical Price Performance

The stock's 50-day moving average price is $6.23 and its 200 day moving average price is $6.69. The firm has a market capitalization of $240.21 million, a PE ratio of -6.70 and a beta of 0.75.

Profound Medical (NASDAQ:PROF - Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The company reported ($0.26) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.22) by ($0.04). Profound Medical had a negative net margin of 171.57% and a negative return on equity of 63.03%. The firm had revenue of $2.48 million during the quarter, compared to analysts' expectations of $4.75 million. Equities research analysts forecast that Profound Medical will post -0.79 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in PROF. Royal Bank of Canada lifted its holdings in shares of Profound Medical by 4.2% during the first quarter. Royal Bank of Canada now owns 493,060 shares of the company's stock worth $3,195,000 after purchasing an additional 19,842 shares during the period. Concurrent Investment Advisors LLC purchased a new position in Profound Medical during the second quarter worth approximately $144,000. HB Wealth Management LLC acquired a new stake in shares of Profound Medical in the first quarter valued at about $194,000. Finally, Annis Gardner Whiting Capital Advisors LLC purchased a new stake in Profound Medical during the 1st quarter worth approximately $259,000. Hedge funds and other institutional investors own 47.86% of the company's stock.

About Profound Medical

Profound Medical Corp. is a medical-technology company focused on developing and commercializing minimally invasive, incision-free treatments for prostate disease. The company's flagship platform, TULSA-PRO, combines magnetic resonance imaging (MRI) with robotic-controlled transurethral ultrasound to ablate targeted prostate tissue while enabling physicians to monitor treatment in real time.

TULSA-PRO is primarily used for the treatment of localized prostate cancer and other prostate conditions, including benign prostatic hyperplasia.

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