Short Interest in Neuronetics, Inc. (NASDAQ:STIM) Rises By 16.4%

Key Points

• Short interest in Neuronetics rose 16.4% in April to 10,912,723 shares — roughly 17.2% of the float with a short-interest ratio of 4.5 days, signaling increased bearish positioning.
• Major shareholder Jorey Chernett bought 100,000 shares at $1.58 on April 20, and insiders have net purchased significantly over the past three months (1,857,872 shares bought vs 183,032 sold), with insiders owning 8.40% of the stock.
• Neuronetics remains unprofitable (Q1 EPS -$0.10, revenue $41.78M), has a market cap of about $118.3M, and faces mixed analyst sentiment with a consensus target of $3.00.

Neuronetics, Inc. (NASDAQ:STIM - Get Free Report) was the target of a large increase in short interest in the month of April. As of April 15th, there was short interest totaling 10,912,723 shares, an increase of 16.4% from the March 31st total of 9,377,645 shares. Approximately 17.2% of the company's shares are short sold. Based on an average trading volume of 2,414,608 shares, the short-interest ratio is currently 4.5 days.

Insider Activity at Neuronetics

In related news, major shareholder Jorey Chernett purchased 100,000 shares of the business's stock in a transaction on Monday, April 20th. The shares were bought at an average price of $1.58 per share, with a total value of $158,000.00. Following the completion of the purchase, the insider directly owned 9,878,988 shares in the company, valued at approximately $15,608,801.04. This trade represents a 1.02% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Keith J. Sullivan sold 46,289 shares of Neuronetics stock in a transaction on Thursday, March 19th. The shares were sold at an average price of $1.34, for a total transaction of $62,027.26. Following the completion of the transaction, the director owned 1,590,924 shares in the company, valued at approximately $2,131,838.16. This trade represents a 2.83% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders purchased 1,857,872 shares of company stock worth $2,431,406 and sold 183,032 shares worth $269,588. 8.40% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Neuronetics

A number of large investors have recently modified their holdings of STIM. HighTower Advisors LLC boosted its holdings in Neuronetics by 260.7% in the 3rd quarter. HighTower Advisors LLC now owns 577,069 shares of the company's stock worth $1,575,000 after acquiring an additional 417,087 shares during the period. Bridgeway Capital Management LLC grew its position in Neuronetics by 35.6% in the fourth quarter. Bridgeway Capital Management LLC now owns 95,205 shares of the company's stock valued at $131,000 after acquiring an additional 25,000 shares in the last quarter. Invesco Ltd. raised its stake in shares of Neuronetics by 80.0% during the fourth quarter. Invesco Ltd. now owns 58,940 shares of the company's stock valued at $81,000 after purchasing an additional 26,194 shares during the period. Caption Management LLC acquired a new position in shares of Neuronetics during the third quarter worth $38,000. Finally, Raymond James Financial Inc. acquired a new position in shares of Neuronetics during the second quarter worth $37,000. Institutional investors and hedge funds own 53.59% of the company's stock.

Neuronetics Stock Performance

Shares of STIM stock opened at $1.70 on Thursday. The company has a current ratio of 2.02, a quick ratio of 1.87 and a debt-to-equity ratio of 2.51. The company has a market cap of $118.29 million, a PE ratio of -2.88 and a beta of 0.87. The company's fifty day simple moving average is $1.42 and its 200-day simple moving average is $1.73. Neuronetics has a 52 week low of $0.80 and a 52 week high of $4.85.

Neuronetics (NASDAQ:STIM - Get Free Report) last announced its quarterly earnings results on Tuesday, March 17th. The company reported ($0.10) earnings per share for the quarter, topping analysts' consensus estimates of ($0.12) by $0.02. Neuronetics had a negative net margin of 26.15% and a negative return on equity of 121.26%. The firm had revenue of $41.78 million during the quarter, compared to analysts' expectations of $40.84 million. As a group, equities research analysts anticipate that Neuronetics will post -0.49 EPS for the current year.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on the company. Weiss Ratings reiterated a "sell (e+)" rating on shares of Neuronetics in a report on Thursday, January 22nd. Canaccord Genuity Group dropped their price target on Neuronetics from $7.00 to $3.00 and set a "buy" rating for the company in a research note on Thursday, March 19th. Finally, Wall Street Zen upgraded Neuronetics from a "sell" rating to a "hold" rating in a report on Saturday, April 18th. One research analyst has rated the stock with a Buy rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $3.00.

About Neuronetics

Neuronetics, Inc is a commercial‐stage medical technology company that develops and markets non-invasive neuromodulation therapies for psychiatric and neurological disorders. The company's flagship product, the NeuroStar Advanced Therapy System, uses repetitive transcranial magnetic stimulation (rTMS) to deliver targeted magnetic pulses to areas of the brain implicated in major depressive disorder (MDD). NeuroStar Advanced Therapy has received U.S. Food and Drug Administration clearance for the treatment of adults with treatment-resistant depression and is supported by a growing body of clinical evidence demonstrating its safety and efficacy.

Founded in 2003 and headquartered in Malvern, Pennsylvania, Neuronetics focuses on advancing clinical care through innovation in neurostimulation.

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