Is Neuronetics Inc. (STIM) Stock Cheap Or Risky?


As of Wednesday close, Neuronetics Inc.’s (NASDAQ:STIM) stock was down -$0.28, moving down -5.11 percent to $5.20. The average number of shares traded per day over the past five days has been 388,440 shares. 2 times new highs have been achieved over the past 5 days, with a $0.20 gain in that time frame. In the last twenty days, the average volume was 214,790, while in the previous 50 days, it was 169,506.

Since last month, STIM stock rose 60.00%. Shares of the company fell to $2.85 on 10/24/22, the lowest level in the past month. A 52-week high of $5.96 was reached on 11/18/22 after having rallying from a 52-week low of $1.98. Since the beginning of this year, STIM’s stock price has risen by 16.59% or $0.74, and marked a new high 8 times. However, the stock has declined by -12.75% since its 52-week high.

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STIM stock investors should be aware that Neuronetics Inc. (STIM) stock had its last reported insider trading activity 44 days ago on Oct 11. Furlong Stephen, the CFO of the company, disposed of 1,630 shares for $2.97 on Oct 11. It resulted in a $4,841 divestment by the insider. MACAN WILLIAM ANDREW sold 76 shares at an average price of $2.82 on Oct 10. The insider now owns 354,765 shares following the transaction. On Oct 07, Sr. VP, GC, CCO and Secretary MACAN WILLIAM ANDREW sold 1,547 shares at $2.93 apiece. The transaction was valued at $4,533.

Valuation Metrics

The stock’s beta is 2.04. Besides these, the trailing price-to-sales (P/S) ratio of 2.25, the price-to-book (PB) ratio of 2.22.

Financial Health

In the three months ended June 29, Neuronetics Inc.’s quick ratio stood at 3.70, while its current ratio was 4.00, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending June 29 was 0.43, and the total debt-to-equity ratio was 0.57. On the profitability front, the trailing twelve-month gross margin is 76.40% percent. In the year ended June 29, operating margins totaled -55.30%. Based on annual data, STIM earned $43.66 million in gross profit and brought in $55.31 million in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was -22.90%. Return on equity (ROE) for the past 12 months was -49.80%.

In Neuronetics Inc.’s quarter-end financial report for June 29, it reported total debt of $27.01 million. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. STIM’s revenue rose 16.36% to $16.33 million during the quarter, while net income inched up to $16.5 million. While analysts expected Neuronetics Inc. to report -$0.41 quarterly earnings, the actual figure was -$0.39 per share, beating the consensus estimate by 4.90%. During the quarter, the company generated -$7.07 million in EBITDA. The liabilities of Neuronetics Inc. were 56.24 million at the end of its most recent quarter ended June 29, and its total debt was $39.62 million. The value of shareholders’ equity is $27.22 million.

Technical Picture

This quick technical analysis looks at Neuronetics Inc.’s (STIM) price momentum. With a historical volatility rate of 91.25%, the RSI 9-day stood at 66.18% on 23 November.

With respect to its five-day moving average, the current Neuronetics Inc. price is up by +4.00% percent or $0.20. At present, STIM shares trade +52.49% above its 20-day simple moving average and +56.16% percent above its 100-day simple moving average. However, the stock is currently trading approximately +70.49% above its SMA50 and +65.08% above its SMA200.

Stochastic coefficient K was 77.98% and Stochastic coefficient D was 84.37%, while ATR was 0.46. Given the Stochastic reading of 71.80% for the 14-day period, the RSI (14) reading has been calculated as 69.02%. As of today, the MACD Oscillator reading stands at 0.16, while the 14-day reading stands at 0.64.

Analyst Ratings

Neuronetics Inc. downgraded its rating on Neuronetics Inc. (NASDAQ: STIM) to a Mkt perform in a note to investors on October 13, 2021. The analysts firm previously had an Outperform rating on the stock.


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