FocalTherics (NASDAQ:FOCL) Cut to “Sell” at Wall Street Zen

Wall Street Zen downgraded shares of FocalTherics (NASDAQ:FOCL) from a hold rating to a sell rating in a research report released on Saturday.

Several other equities analysts have also issued reports on FOCL. Mizuho set a $15.00 target price on FocalTherics and gave the stock an “outperform” rating in a research report on Friday, July 17th. HC Wainwright reissued a “buy” rating and set a $10.00 price objective on shares of FocalTherics in a research note on Tuesday, June 2nd. Finally, Piper Sandler restated a “neutral” rating and set a $4.00 price objective on shares of FocalTherics in a report on Friday. One analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, FocalTherics has a consensus rating of “Hold” and a consensus price target of $7.75.

FocalTherics Stock Performance

Shares of FocalTherics stock opened at $4.36 on Friday. The company’s fifty day simple moving average is $5.38. The company has a quick ratio of 0.99, a current ratio of 1.34 and a debt-to-equity ratio of 1.79. The company has a market cap of $163.41 million, a PE ratio of -4.23 and a beta of -0.04. FocalTherics has a 52 week low of $1.30 and a 52 week high of $6.40.

FocalTherics (NASDAQ:FOCL) last announced its quarterly earnings data on Friday, August 14th. The company reported ($0.39) EPS for the quarter, missing analysts’ consensus estimates of ($0.20) by ($0.19). The company had revenue of $13.20 million for the quarter. FocalTherics had a negative return on equity of 175.45% and a negative net margin of 56.26%. As a group, research analysts forecast that FocalTherics will post -0.78 EPS for the current fiscal year.

Insider Buying and Selling

In other FocalTherics news, Director Joshua Levine acquired 10,000 shares of the firm’s stock in a transaction that occurred on Friday, August 14th. The stock was acquired at an average cost of $4.75 per share, for a total transaction of $47,500.00. Following the transaction, the director owned 45,000 shares of the company’s stock, valued at $213,750. This trade represents a 28.57% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Ryan Rhodes bought 21,000 shares of the company’s stock in a transaction on Friday, August 14th. The shares were bought at an average price of $4.75 per share, for a total transaction of $99,750.00. Following the completion of the acquisition, the chief executive officer directly owned 626,649 shares in the company, valued at approximately $2,976,582.75. This trade represents a 3.47% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last ninety days, insiders purchased 116,000 shares of company stock valued at $551,000. 10.10% of the stock is owned by company insiders.

Hedge Funds Weigh In On FocalTherics

A number of large investors have recently added to or reduced their stakes in the company. Rock Springs Capital Management LP lifted its position in shares of FocalTherics by 7.1% in the first quarter. Rock Springs Capital Management LP now owns 1,378,000 shares of the company’s stock worth $5,126,000 after purchasing an additional 91,500 shares in the last quarter. Flax Pond Capital LLC acquired a new stake in FocalTherics in the 4th quarter valued at $2,623,000. Leonteq Securities AG acquired a new stake in FocalTherics in the 4th quarter valued at $313,000. Kovack Advisors Inc. bought a new stake in FocalTherics during the 4th quarter worth about $53,000. Finally, Lido Advisors LLC bought a new stake in FocalTherics during the 1st quarter worth about $40,000. Institutional investors own 62.74% of the company’s stock.

Key FocalTherics News

Here are the key news stories impacting FocalTherics this week:

• Positive Sentiment: Company insiders collectively purchased 116,000 shares at $4.75 per share, representing approximately $551,000 of open-market buying. The purchases included CEO Ryan Rhodes, CFO Kenneth S. Mobeck, General Counsel Sanket Shah, SVP Steven Annen, and Directors Lance Willsey, Joshua Levine, Fran Schulz, and David R. Horn. The coordinated buying may suggest that management and directors view the recent weakness as an attractive entry point. FocalTherics insider transaction filing
• Positive Sentiment: Director Lance Willsey made the largest purchase, acquiring 50,000 shares for $237,500. CEO Ryan Rhodes also bought 21,000 shares for $99,750, while several other executives and directors increased their holdings by between 2.83% and 196.08%. FocalTherics director transaction filing
• Negative Sentiment: FocalTherics recently reported quarterly earnings of a $0.39-per-share loss, missing the consensus estimate for a $0.20 loss by $0.19. Revenue was $13.20 million, while the company posted a negative net margin of 56.26% and negative return on equity of 175.45%. Analysts expect a full-year loss of approximately $0.78 per share, which remains a key risk for the stock.

About FocalTherics

EDAP TMS SA, together with its subsidiaries, develops, produces, markets, distributes, and maintains a portfolio of minimally invasive medical devices for the treatment of urological diseases in Asia, France, the United States, and internationally. It operates in three segments: High Intensity Focused Ultrasound (HIFU), Extracorporeal ShockWave Lithotripsy (ESWL), and Distribution Services (DIST). The HIFU segment develops, manufactures, and markets medical devices based on HIFU technology for the minimally invasive treatment of urological and other clinical indications.