In a recent transaction on August 20, Glenn P. Muir, a director at Neuronetics , Inc. (NASDAQ:STIM), a company known for its medical instruments and apparatus, has increased his stake in the company. Muir purchased 25,000 shares of common stock at a price of $1.00 per share, totaling an investment of $25,000.
This purchase reflects a notable addition to Muir's holdings in the company, bringing his total ownership to 239,818 shares of Neuronetics' common stock. The transaction was publicly filed and came to light through the company's latest SEC filing.
Neuronetics, Inc., based in Malvern, Pennsylvania, operates within the healthcare sector, focusing on innovative medical solutions. The company's commitment to advancing technologies in the medical field is reflected in its product offerings and continuous research and development efforts.
Investors and market watchers often keep a close eye on insider transactions, as they can provide insights into how the company's leadership views the stock's value and future prospects. Muir's recent acquisition of additional shares could be interpreted as a sign of confidence in the company's trajectory.
For those following Neuronetics' stock performance, this insider activity may be of interest as it adds to the overall picture of the company's financial health and insider sentiment. As always, investors are encouraged to consider the broader market context and individual investment goals when assessing the significance of insider transactions.
In other recent news, Neuronetics experienced a downgrade in its stock rating from Outperform to Market Perform by William Blair, following a reported sales miss in the second quarter. The company's sales came in at $16.5 million, falling short of the firm's estimate by $2.2 million and Neuronetics' own guidance range of $18 million to $19 million. This shortfall was attributed to altered purchasing patterns due to the Change Health cyberattack earlier in the year.
In parallel, the company is preparing for a merger with Greenbrook TMS, which is expected 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.
Despite the financial challenges in the second quarter, Neuronetics observed an 18% growth in utilization of local consumables, indicating robust demand for its treatments. The company also reported a backlog of patient demand, with motor threshold tests increasing by double digits.
In an effort to increase therapy awareness, Neuronetics is investing in its Better Me Guarantee Program and launching a television advertising campaign in Tampa Bay, Florida. These developments come as the company continues to navigate current challenges, with the goal of achieving positive cash flow in 2025.
InvestingPro Insights
As Neuronetics, Inc. (NASDAQ:STIM) garners attention with insider buying activity, real-time data and analysis from InvestingPro offer additional context to the company's financial situation. Glenn P. Muir's recent investment coincides with some intriguing metrics and insights.
InvestingPro data shows that Neuronetics has a market capitalization of $30.14 million, reflecting the size of the company in the competitive medical instruments sector. Despite this, the company's P/E ratio stands at -0.89, suggesting that investors are currently valuing the company's earnings negatively. This is further supported by the adjusted P/E ratio over the last twelve months as of Q2 2024, which slightly worsened to -0.98.
On the performance front, Neuronetics has experienced a significant return over the last week, with a 22.91% price total return. However, this short-term gain contrasts with longer-term challenges, as the stock has seen a substantial decline over the last six months, with a price total return of -68.08%. This volatility is a critical aspect for investors to consider, as noted in one of the InvestingPro Tips, which highlights the stock's high price volatility.
Another InvestingPro Tip indicates that analysts do not expect the company to be profitable this year. This aligns with the company's negative operating income margin of -37.0% over the last twelve months as of Q2 2024, emphasizing the challenges Neuronetics faces in reaching profitability.
For investors intrigued by the recent insider buying and considering Neuronetics as a potential addition to their portfolios, it's worth noting that InvestingPro provides a wealth of additional tips—there are 13 more listed on the platform—which can offer further guidance on the company's valuation and performance.
The insights from InvestingPro, combined with the insider buying activity, may help investors better understand the company's current financial health and potential future direction. For more detailed analysis and tips, investors can visit InvestingPro's dedicated page for Neuronetics at https://www.investing.com/pro/STIM.
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