Neuronetics (NASDAQ:STIM) Releases Earnings Results, Beats Expectations By $0.01 EPS

Neuronetics (NASDAQ:STIM) posted its quarterly earnings results on Tuesday. The company reported ($0.16) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.17) by $0.01, FiscalAI reports. Neuronetics had a negative return on equity of 121.26% and a negative net margin of 26.15%.The firm had revenue of $34.45 million for the quarter, compared to the consensus estimate of $34.17 million.

Here are the key takeaways from Neuronetics’ conference call:

• New CEO Dan Reuvers began a listening tour and outlined a strategy to broaden NeuroStar’s go-to-market, tighten clinic execution, and evaluate the business structure with an open mind to actions that could unlock shareholder value.
• Q1 results: total revenue $34.5M (+8% YoY), NeuroStar revenue down 3% while system shipments rose 10% (34 systems), and Greenbrook clinic revenue up 15% driven by SPRAVATO; gross margin fell to 46.9% due to revenue mix, but adjusted EBITDA improved to -$6.6M.
• Cash and liquidity tightened—total cash $19M (down from $34.1M), Q1 operating cash use $9.4M—management says current plan provides runway through the year but will continue evaluating the balance sheet and financing options.
• Management is taking cost actions expected to deliver ~$2.5M–$3M of annualized savings (net benefits starting in Q3), improving collections and operational efficiency in clinics, and piloting expanded commercial models for NeuroStar to drive growth.
• Company amended its debt (one?time $5M principal payment to Perceptive) to reduce interest/covenant pressure and highlighted potential upside if Compass/psilocybin therapy is approved, though timing and reimbursement remain uncertain.

Neuronetics Price Performance

STIM stock traded up $0.37 during midday trading on Tuesday, hitting $2.39. 3,998,775 shares of the stock were exchanged, compared to its average volume of 2,133,197. The stock’s 50-day moving average price is $1.44 and its 200-day moving average price is $1.72. The stock has a market cap of $165.95 million, a price-to-earnings ratio of -4.04 and a beta of 1.13. Neuronetics has a fifty-two week low of $0.80 and a fifty-two week high of $4.85. The company has a debt-to-equity ratio of 2.51, a quick ratio of 1.87 and a current ratio of 2.02.

Analyst Ratings Changes

A number of research firms recently weighed in on STIM. Wall Street Zen upgraded Neuronetics from a “sell” rating to a “hold” rating in a research note on Saturday, April 18th. Canaccord Genuity Group decreased their price target on Neuronetics from $7.00 to $3.00 and set a “buy” rating on the stock in a research note on Thursday, March 19th. Finally, Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Neuronetics in a report on Thursday, January 22nd. One analyst has rated the stock with a Buy rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Neuronetics presently has a consensus rating of “Hold” and an average target price of $3.00.

Insider Buying and Selling at Neuronetics

In related news, Director Keith J. Sullivan sold 46,289 shares of Neuronetics stock in a transaction on Thursday, March 19th. The stock was sold at an average price of $1.34, for a total transaction of $62,027.26. Following the completion of the transaction, the director directly owned 1,590,924 shares of the company’s stock, valued at approximately $2,131,838.16. The trade was a 2.83% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, major shareholder Jorey Chernett acquired 607,400 shares of Neuronetics stock in a transaction that occurred on Wednesday, March 18th. The shares were purchased at an average cost of $1.35 per share, with a total value of $819,990.00. Following the completion of the acquisition, the insider owned 8,123,804 shares of the company’s stock, valued at $10,967,135.40. The trade was a 8.08% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last ninety days, insiders have purchased 1,857,872 shares of company stock valued at $2,431,406 and have sold 183,032 shares valued at $269,588. Insiders own 8.40% of the company’s stock.

Hedge Funds Weigh In On Neuronetics

A number of institutional investors have recently made changes to their positions in the stock. Invesco Ltd. raised its holdings in shares of Neuronetics by 80.0% in the fourth quarter. Invesco Ltd. now owns 58,940 shares of the company’s stock worth $81,000 after acquiring an additional 26,194 shares during the last quarter. XTX Topco Ltd raised its holdings in shares of Neuronetics by 992.6% in the fourth quarter. XTX Topco Ltd now owns 314,194 shares of the company’s stock worth $434,000 after acquiring an additional 285,438 shares during the last quarter. Caption Management LLC raised its holdings in shares of Neuronetics by 571.4% in the fourth quarter. Caption Management LLC now owns 92,501 shares of the company’s stock worth $128,000 after acquiring an additional 78,723 shares during the last quarter. Bridgeway Capital Management LLC raised its holdings in shares of Neuronetics by 35.6% in the fourth quarter. Bridgeway Capital Management LLC now owns 95,205 shares of the company’s stock worth $131,000 after acquiring an additional 25,000 shares during the last quarter. Finally, FourWorld Capital Management LLC raised its holdings in shares of Neuronetics by 64.0% in the fourth quarter. FourWorld Capital Management LLC now owns 931,250 shares of the company’s stock worth $1,285,000 after acquiring an additional 363,250 shares during the last quarter. 53.59% of the stock is owned by institutional investors and hedge funds.

About Neuronetics

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.