Neuronetics (NASDAQ:STIM) Announces Quarterly Earnings Results

Neuronetics (NASDAQ:STIM) announced its quarterly earnings results on Tuesday. The company reported ($0.05) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.12) by $0.07, FiscalAI reports. The firm had revenue of $41.57 million for the quarter, compared to analyst estimates of $40.17 million. Neuronetics had a negative net margin of 24.48% and a negative return on equity of 139.83%.

Here are the key takeaways from Neuronetics’ conference call:

• Revenue rose 9.1% to $41.6 million, while adjusted EBITDA improved to positive $0.3 million from negative $5.6 million a year ago. Net loss narrowed to $3.4 million, and cash used in operations and investing fell to $1.4 million.
• Greenbrook revenue increased 16.8% to $26.9 million, supported by provider growth, improved reimbursement and revenue-cycle management. Management said cash collections grew faster than revenue and identified further upside from increasing clinic occupancy, with roughly 40% of capacity still unused.
• Neuronetics is broadening NeuroStar’s commercial model to include outright purchases, lease financing and à la carte support alongside its traditional treatment-session model. Capital sales grew double digits, but session revenue declined double digits; management expects some near-term revenue volatility as customers shift among models.
• The company raised its full-year gross-margin outlook to 48%–50% and lowered operating-expense guidance to $95 million–$100 million, while narrowing revenue guidance to $160 million–$164 million. It expects cash flow from operations and investing of negative $10.5 million to negative $14.5 million for the year and limited net cash use in the second half.
• Management continues preparing Greenbrook for potential psychedelic treatment launches, particularly Compass Pathways’ COMP360, leveraging existing SPRAVATO infrastructure, trained staff and available clinic capacity. The company views its combination of TMS, SPRAVATO and future therapies as a potential differentiator in interventional psychiatry.

Neuronetics Stock Up 37.9%

STIM stock opened at $2.99 on Tuesday. Neuronetics has a 1-year low of $0.80 and a 1-year high of $4.00. The business’s 50 day simple moving average is $1.61 and its 200 day simple moving average is $1.55. The company has a current ratio of 1.67, a quick ratio of 1.50 and a debt-to-equity ratio of 3.59. The firm has a market capitalization of $208.21 million, a PE ratio of -5.53 and a beta of 1.03.

Analyst Ratings Changes

STIM has been the subject of a number of research reports. BTIG Research assumed coverage on Neuronetics in a report on Monday, July 20th. They set a “buy” rating and a $5.00 target price for the company. Wall Street Zen raised Neuronetics from a “sell” rating to a “hold” rating in a research report on Sunday, July 12th. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Neuronetics in a research note on Thursday, June 18th. Finally, Citigroup reiterated a “market outperform” rating on shares of Neuronetics in a report on Tuesday, July 21st. Three analysts have rated the stock with a Buy rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $4.00.

Insider Buying and Selling

In related news, major shareholder Jorey Chernett acquired 100,000 shares of the firm’s stock in a transaction on Tuesday, May 19th. The shares were purchased at an average cost of $1.17 per share, for a total transaction of $117,000.00. Following the completion of the acquisition, the insider directly owned 10,553,988 shares in the company, valued at approximately $12,348,165.96. This trade represents a 0.96% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is accessible through the SEC website. 8.40% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. boosted its position in shares of Neuronetics by 3.3% in the third quarter. Vanguard Group Inc. now owns 2,832,118 shares of the company’s stock valued at $7,732,000 after acquiring an additional 89,504 shares during the period. UBS Group AG raised its holdings in Neuronetics by 580.7% in the 3rd quarter. UBS Group AG now owns 2,164,831 shares of the company’s stock valued at $5,910,000 after buying an additional 1,846,801 shares during the last quarter. Lane Generational LLC bought a new position in Neuronetics during the 4th quarter worth $2,353,000. Balyasny Asset Management L.P. increased its stake in shares of Neuronetics by 6.5% in the second quarter. Balyasny Asset Management L.P. now owns 1,509,099 shares of the company’s stock valued at $5,267,000 after buying an additional 92,048 shares during the period. Finally, Wexford Capital LP increased its position in Neuronetics by 83.1% during the 3rd quarter. Wexford Capital LP now owns 1,177,225 shares of the company’s stock valued at $3,214,000 after purchasing an additional 534,155 shares during the period. 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.