CeriBell (NASDAQ:CBLL) Shares Gap Down Following Weak Earnings

CeriBell, Inc. (NASDAQ:CBLL)’s stock price gapped down prior to trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $28.27, but opened at $22.05. CeriBell shares last traded at $27.6950, with a volume of 230,483 shares changing hands.

The company reported ($0.55) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.51) by ($0.04). The business had revenue of $29.34 million for the quarter, compared to analysts’ expectations of $29.18 million. CeriBell had a negative return on equity of 44.85% and a negative net margin of 64.73%.

Wall Street Analyst Weigh In

CBLL has been the topic of several recent research reports. TD Cowen boosted their price target on CeriBell from $29.00 to $33.00 and gave the company a “buy” rating in a research report on Friday, October 2nd. Raymond James Financial reaffirmed a “strong-buy” rating and set a $29.00 price objective on shares of CeriBell in a research report on Thursday, September 3rd. Canaccord Genuity Group boosted their target price on CeriBell from $25.00 to $26.00 and gave the company a “buy” rating in a report on Tuesday, August 11th. Barclays upgraded CeriBell to a “neutral” rating in a research note on Tuesday, August 18th. Finally, Weiss Ratings upgraded CeriBell from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Friday, October 16th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $27.00.

Insiders Place Their Bets

In related news, CRO Joseph S. Manni sold 1,361 shares of the firm’s stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $24.02, for a total value of $32,691.22. Following the completion of the sale, the executive owned 55,956 shares in the company, valued at $1,344,063.12. This trade represents a 2.37% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, VP David Foehr sold 9,255 shares of CeriBell stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $24.25, for a total value of $224,433.75. Following the completion of the sale, the vice president directly owned 34,144 shares in the company, valued at $827,992. This represents a 21.33% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 174,905 shares of company stock valued at $4,312,995. Corporate insiders own 17.70% of the company’s stock.

Institutional Trading of CeriBell

Several hedge funds have recently modified their holdings of the business. BlackRock Inc. purchased a new stake in shares of CeriBell in the second quarter valued at approximately $37,657,000. Bank of New York Mellon Corp purchased a new position in CeriBell in the second quarter worth $17,437,000. TimesSquare Capital Management LLC purchased a new position in CeriBell in the second quarter worth $15,182,000. KCM Capital Inc raised its position in CeriBell by 40.0% in the first quarter. KCM Capital Inc now owns 1,400,000 shares of the company’s stock worth $25,662,000 after acquiring an additional 400,000 shares in the last quarter. Finally, Bank of America Corp DE acquired a new stake in CeriBell in the second quarter valued at $4,619,000.

CeriBell Stock Down 2.9%

The company has a market capitalization of $1.05 billion, a PE ratio of -15.56 and a beta of 0.86. The firm’s 50-day simple moving average is $25.06 and its 200 day simple moving average is $20.85. The company has a debt-to-equity ratio of 0.16, a quick ratio of 8.79 and a current ratio of 9.18.

CeriBell Company Profile

CeriBell, Inc is a medical technology company that develops artificial intelligence-enabled neurological diagnostic products. Its technology is designed to help healthcare professionals rapidly identify and monitor seizures, including nonconvulsive seizures that may be difficult to recognize through a standard clinical examination.

The company’s primary product is the Ceribell Rapid Response EEG system, a portable electroencephalography platform that combines a wireless EEG recorder, a simplified disposable headband, and software-based analysis tools.