Stephen Furlong, the Executive Vice President, Chief Financial Officer, and Treasurer of Neuronetics , Inc. (NASDAQ:STIM), a company specializing in surgical and medical instruments and apparatus, has recently sold shares of the company's common stock. The transaction, which took place on October 8, 2024, involved the sale of 1,368 shares at a weighted average price of $0.82 per share, resulting in a total value of approximately $1,121.
The sale was executed in multiple transactions with prices ranging from $0.78 to $0.83. The transactions were non-discretionary and were carried out to satisfy Furlong's tax withholding obligations upon the vesting of a portion of a restricted stock unit award.
Following the sale, Furlong's ownership in Neuronetics stands at 497,408 shares of common stock. The company, based in Malvern, Pennsylvania, is known for its innovative approach to medical device development and has a strong presence in the healthcare sector.
Investors and shareholders of Neuronetics can request full information regarding the number of shares sold at each separate price within the specified range by contacting the company or the SEC staff.
The sale was reported in accordance with the Securities Exchange Act of 1934, and the filing was signed by Patrick Devine, acting as Attorney-in-Fact for Stephen Furlong.
In other recent news, Neuronetics, a medical device company, reported a second-quarter revenue of $16.5 million, falling short of expectations due to altered purchasing patterns influenced by the Change Health cyberattack. Despite this setback, the company saw an 18% growth in the utilization of local consumables, indicating a robust demand for its treatments. William Blair downgraded Neuronetics' stock rating from Outperform to Market Perform following these financial results.
In a significant development, Neuronetics is preparing for a merger with Greenbrook TMS, which is expected to generate revenue and cost synergies, propelling the company towards sustained profitability from 2025. This merger is anticipated to streamline operations, potentially extend insurance payor contracts to other customers, and boost brand recognition for NeuroStar TMS therapy.
Simultaneously, Neuronetics is investing in its Better Me Guarantee Program and launching a television advertising campaign in Tampa Bay, Florida, to increase therapy awareness. Despite the challenges, the company reaffirmed its full-year 2024 revenue guidance, which remains set between $78 million and $80 million. These recent developments reflect the strategic steps Neuronetics is taking to navigate current challenges, aiming to achieve positive cash flow in 2025.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on Neuronetics' financial situation and market performance. The company's market capitalization stands at $26.05 million, reflecting its current valuation in the medical instruments sector.
Neuronetics has experienced significant stock price volatility recently. While the stock has shown a strong return of 17.95% over the last month, it has fallen dramatically by 78.75% over the past six months. This volatility aligns with an InvestingPro Tip indicating that the stock generally trades with high price volatility.
Despite the recent insider sale by CFO Stephen Furlong, it's worth noting that two analysts have revised their earnings upwards for the upcoming period, according to an InvestingPro Tip. This could suggest some optimism about the company's near-term prospects.
However, investors should be aware that Neuronetics is currently not profitable, with a negative operating income of $26.66 million in the last twelve months as of Q2 2024. The company's revenue for the same period was $72.06 million, with a revenue growth of 6.22%.
For those interested in a more comprehensive analysis, InvestingPro offers 10 additional tips for Neuronetics, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.