Neuronetics, Inc. (NASDAQ:STIM) Sees Large Growth in Short Interest

Neuronetics, Inc. (NASDAQ:STIM) 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.

Wall Street Analysts Forecast Growth

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

Neuronetics Stock Up 1.6%

Shares of STIM traded up $0.03 during mid-day trading on Friday, reaching $1.97. 3,275,180 shares of the stock traded hands, compared to its average volume of 2,104,495. The firm has a market cap of $137.14 million, a price-to-earnings ratio of -3.35 and a beta of 0.87. The stock has a fifty day simple moving average of $1.44 and a 200 day simple moving average of $1.73. Neuronetics has a 12-month low of $0.80 and a 12-month high of $4.85. The company has a quick ratio of 1.87, a current ratio of 2.02 and a debt-to-equity ratio of 2.51.

Neuronetics (NASDAQ:STIM) last posted its quarterly earnings data on Tuesday, March 17th. The company reported ($0.10) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.12) by $0.02. The company had revenue of $41.78 million for the quarter, compared to analyst estimates of $40.84 million. Neuronetics had a negative net margin of 26.15% and a negative return on equity of 121.26%. Sell-side analysts expect that Neuronetics will post -0.49 EPS for the current fiscal year.

Insider Activity

In related news, Director Keith J. Sullivan sold 46,289 shares of the stock in a transaction that occurred 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 sale, the director owned 1,590,924 shares of the company’s stock, valued at approximately $2,131,838.16. This represents a 2.83% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, major shareholder Jorey Chernett bought 607,400 shares of the company’s stock in a transaction that occurred on Wednesday, March 18th. The shares were acquired at an average cost of $1.35 per share, with a total value of $819,990.00. Following the transaction, the insider owned 8,123,804 shares in the company, valued at approximately $10,967,135.40. This represents a 8.08% increase in their position. The SEC filing for this purchase provides additional information. Over the last quarter, insiders have bought 1,857,872 shares of company stock worth $2,431,406 and have sold 183,032 shares worth $269,588. Corporate insiders own 8.40% of the company’s stock.

Institutional Trading of Neuronetics

Hedge funds have recently made changes to their positions in the stock. Presidio Capital Management LLC acquired a new stake in shares of Neuronetics during the third quarter worth approximately $32,000. Intrua Financial LLC acquired a new stake in shares of Neuronetics during the third quarter worth approximately $33,000. Sherbrooke Park Advisers LLC acquired a new stake in shares of Neuronetics during the third quarter worth approximately $33,000. Raymond James Financial Inc. acquired a new stake in shares of Neuronetics during the second quarter worth approximately $37,000. Finally, Caption Management LLC acquired a new stake in shares of Neuronetics during the third quarter worth approximately $38,000. Institutional investors and hedge funds own 53.59% of the company’s stock.

Neuronetics Company Profile

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.