Zacks Investment Research cut shares of Accuray (NASDAQ:ARAY) from a buy rating to a hold rating in a report published on Wednesday morning.
According to Zacks, “Over the past year, Accuray has underperformed the broader industry, courtesy of cutthroat competition in the niche space. Long sales and implementation cycles of the CyberKnife and TomoTherapy systems is a headwind. This is will keep margins under pressure. Fluctuations in currency exchange rates will continue to adversely impact Accuray’s backlog. Furthermore, unfavorable product mix, declining service revenues, sluggish macro-economic conditions and pricing headwinds are major concerns. However, Accuray rides on the market’s solid response to the Radixact platform. Growing adoption of non-surgical treatment options, successful execution of restructuring plans and accretive acquisitions are other positives. A series of software upgradation has been another growth driver for Accuray. These upgrades include integrated data management system (IDMS) and Accuray Precision Treatment Planning Software. “
Other equities research analysts also recently issued research reports about the stock. Royal Bank of Canada set a $6.00 price objective on shares of Accuray and gave the stock a hold rating in a report on Wednesday, January 24th. BidaskClub downgraded shares of Accuray from a buy rating to a hold rating in a report on Thursday, February 8th. JPMorgan Chase & Co. downgraded shares of Accuray from a neutral rating to an underweight rating and set a $6.00 price objective for the company. in a report on Wednesday, December 13th. Finally, Lake Street Capital assumed coverage on shares of Accuray in a report on Thursday, November 30th. They issued a buy rating and a $10.00 price objective for the company. One research analyst has rated the stock with a sell rating, four have issued a hold rating and four have issued a buy rating to the company’s stock. The company has an average rating of Hold and an average target price of $7.13.
Accuray (NASDAQ:ARAY) last released its quarterly earnings results on Tuesday, January 23rd. The medical equipment provider reported ($0.06) EPS for the quarter, topping the consensus estimate of ($0.11) by $0.05. The business had revenue of $100.33 million during the quarter, compared to analyst estimates of $90.31 million. Accuray had a negative net margin of 6.09% and a negative return on equity of 44.66%. The company’s quarterly revenue was up 14.7% on a year-over-year basis. During the same quarter in the prior year, the firm earned ($0.11) earnings per share. research analysts expect that Accuray will post -0.19 earnings per share for the current year.
In related news, CFO Kevin Waters sold 7,154 shares of the company’s stock in a transaction dated Friday, December 1st. The shares were sold at an average price of $5.06, for a total value of $36,199.24. Following the completion of the sale, the chief financial officer now owns 335,087 shares of the company’s stock, valued at $1,695,540.22. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Joshua Levine sold 17,093 shares of the company’s stock in a transaction dated Friday, December 1st. The shares were sold at an average price of $4.86, for a total transaction of $83,071.98. Following the completion of the sale, the chief executive officer now directly owns 1,435,428 shares of the company’s stock, valued at $6,976,180.08. The disclosure for this sale can be found here. Insiders sold 26,413 shares of company stock valued at $129,798 in the last ninety days. Corporate insiders own 3.90% of the company’s stock.
A number of hedge funds and other institutional investors have recently modified their holdings of the business. MetLife Investment Advisors LLC acquired a new stake in Accuray in the 4th quarter valued at about $160,000. Two Sigma Investments LP lifted its holdings in Accuray by 189.5% in the 4th quarter. Two Sigma Investments LP now owns 404,736 shares of the medical equipment provider’s stock valued at $1,740,000 after acquiring an additional 264,941 shares during the last quarter. Two Sigma Advisers LP lifted its holdings in Accuray by 15.4% in the 4th quarter. Two Sigma Advisers LP now owns 148,930 shares of the medical equipment provider’s stock valued at $640,000 after acquiring an additional 19,900 shares during the last quarter. Goldman Sachs Group Inc. lifted its holdings in Accuray by 22.4% in the 4th quarter. Goldman Sachs Group Inc. now owns 126,726 shares of the medical equipment provider’s stock valued at $545,000 after acquiring an additional 23,189 shares during the last quarter. Finally, Deutsche Bank AG lifted its holdings in Accuray by 142.0% in the 4th quarter. Deutsche Bank AG now owns 181,513 shares of the medical equipment provider’s stock valued at $778,000 after acquiring an additional 106,501 shares during the last quarter. 84.99% of the stock is owned by institutional investors.
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Accuray Company Profile
Accuray Incorporated is a radiation oncology company. The Company develops, manufactures and markets medical devices used in radiation therapy for the treatment of cancer patients. Its products include the CyberKnife Systems, the TomoTherapy Systems, and the Radixact Delivery Treatment Platform. Its technologies, the CyberKnife and TomoTherapy Systems, are designed to deliver treatments, including stereotactic radiosurgery (SRS), stereotactic body radiation therapy (SBRT), intensity modulated radiation therapy (IMRT), image guided radiation therapy (IGRT) and adaptive radiation therapy.
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