Neuronetics , Inc. (NASDAQ:STIM) director Robert Cascella has recently increased his stake in the company, according to the latest SEC filings. On August 14 and 15, Cascella purchased a total of 70,000 shares of Neuronetics common stock, spending $58,450. These transactions occurred at prices ranging from $0.79 to $0.88 per share.
The first transaction on August 14 involved the purchase of 35,000 shares at $0.79 each, followed by an additional 35,000 shares the next day at a slightly higher price of $0.88 per share. Following these purchases, Cascella now owns 314,098 shares of Neuronetics, reflecting his continued commitment to the company.
Neuronetics, based in Malvern, Pennsylvania, specializes in surgical and medical instruments and apparatus. The company's recent activities, including transactions by its directors, are closely watched by investors seeking insights into insider confidence and company performance.
Cascella's recent stock purchases come at a time when investors are keenly observing insider trading patterns for indications of a company's future prospects. His increased investment in Neuronetics is likely to be interpreted as a positive signal about the company's potential.
Investors and market watchers often look to the actions of company insiders such as directors and executives to gauge their belief in the company's future success. With this latest move, Cascella appears to be expressing confidence in Neuronetics' trajectory.
In other recent news, Neuronetics, a medical technology company, reported a second-quarter revenue of $16.5 million, falling short of both the firm's estimate by $2.2 million and the company's own guidance range. This shortfall was attributed to altered purchasing patterns due to a cyberattack at Change Health earlier in the year. Despite the sales miss, Neuronetics observed an 18% growth in the utilization of local consumables, indicating robust demand for its treatments.
In light of these financial results, William Blair downgraded Neuronetics' stock rating from Outperform to Market Perform. The company is also preparing for a merger with Greenbrook TMS, anticipated to generate revenue and cost synergies, pushing Neuronetics towards sustained profitability from 2025. Canaccord Genuity has adjusted its price target for Neuronetics shares to $3.00, while maintaining a Buy rating.
Additional recent developments include Neuronetics' investment in its Better Me Guarantee Program and the launch of a television advertising campaign in Tampa Bay, Florida, aiming to increase therapy awareness. Despite the challenges, Neuronetics maintains its full-year 2024 revenue guidance between $78 million and $80 million. These developments reflect the company's strategic steps to strengthen its position in the market.
InvestingPro Insights
As Neuronetics, Inc. (NASDAQ:STIM) catches the market's eye due to insider trading activity, a closer look at the company's financials and performance metrics from InvestingPro offers a nuanced perspective. According to recent data, Neuronetics has a market capitalization of $35.45 million, indicating its size within the medical instruments and apparatus sector. Despite a challenging period, with the stock experiencing a significant decline over the last three months, two analysts have revised their earnings upwards for the upcoming period, which could signal a turning point for the company's financial outlook.
While the director's recent stock purchases may reflect insider confidence, it's notable that Neuronetics has not been profitable over the last twelve months, and analysts do not anticipate the company will be profitable this year. This aligns with the company's reported operating income margin of -37.0% for the last twelve months as of Q2 2024. Additionally, the stock's price volatility is high, which may attract certain investors looking for potential short-term gains but could also indicate a higher risk profile.
InvestingPro data also reveals a gross profit margin of 75.91% for the last twelve months as of Q2 2024, suggesting that while the company faces challenges, it maintains a strong gross profit on its products. With the next earnings date set for November 5, 2024, investors will be watching closely to see if the company's strategic efforts can translate into improved financial performance.
For those seeking more in-depth analysis and additional metrics to inform their investment decisions, there are numerous other InvestingPro Tips available, providing a comprehensive view of Neuronetics' financial health and market position.
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