Neuronetics (NASDAQ:STIM) Rating Lowered to “Sell” at Wall Street Zen

Neuronetics (NASDAQ:STIM) was downgraded by investment analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Saturday.

Other research analysts have also recently issued reports about the stock. Weiss Ratings reiterated a “sell (e+)” rating on shares of Neuronetics in a report on Thursday, January 22nd. Canaccord Genuity Group cut their price objective on Neuronetics from $7.00 to $3.00 and set a “buy” rating on the stock in a research report on Thursday. One analyst has rated the stock with a Buy rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $3.00.

Neuronetics Stock Performance

Shares of STIM stock opened at $1.45 on Friday. The company has a market cap of $100.46 million, a price-to-earnings ratio of -2.46 and a beta of 0.87. Neuronetics has a 52 week low of $0.80 and a 52 week high of $5.05. The firm has a 50 day moving average of $1.60 and a 200-day moving average of $2.01. The company has a quick ratio of 1.87, a current ratio of 2.02 and a debt-to-equity ratio of 2.51.

Neuronetics (NASDAQ:STIM) last posted its quarterly earnings results on Tuesday, March 17th. The company reported ($0.10) earnings per share for the quarter, beating the consensus estimate of ($0.12) by $0.02. The firm had revenue of $41.78 million during the quarter, compared to the consensus estimate of $40.84 million. Neuronetics had a negative net margin of 26.15% and a negative return on equity of 121.26%. On average, equities analysts forecast that Neuronetics will post -1.13 earnings per share for the current year.

Insider Activity

In other news, CEO Keith J. Sullivan sold 40,976 shares of the business’s stock in a transaction on Tuesday, February 10th. The shares were sold at an average price of $1.55, for a total transaction of $63,512.80. Following the completion of the transaction, the chief executive officer directly owned 1,567,012 shares in the company, valued at $2,428,868.60. The trade was a 2.55% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, major shareholder Jorey Chernett bought 607,400 shares of Neuronetics stock in a transaction that occurred on Wednesday, March 18th. The shares were acquired at an average price of $1.35 per share, with a total value of $819,990.00. Following the completion of the transaction, the insider owned 8,123,804 shares of the company’s stock, valued at $10,967,135.40. This represents a 8.08% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last 90 days, insiders acquired 1,588,400 shares of company stock valued at $2,034,450 and sold 104,307 shares valued at $164,097. 9.80% of the stock is owned by company insiders.

Hedge Funds Weigh In On Neuronetics

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Presidio Capital Management LLC purchased a new position in Neuronetics in the third quarter worth $32,000. Intrua Financial LLC purchased a new stake in shares of Neuronetics during the third quarter valued at approximately $33,000. Sherbrooke Park Advisers LLC bought a new stake in Neuronetics in the 3rd quarter worth $33,000. Police & Firemen s Retirement System of New Jersey bought a new stake in shares of Neuronetics in the second quarter worth about $34,000. Finally, Raymond James Financial Inc. purchased a new stake in Neuronetics in the 2nd quarter worth approximately $37,000. Hedge funds and other institutional investors own 53.59% of the company’s stock.

Key Headlines Impacting Neuronetics

Here are the key news stories impacting Neuronetics this week:

• Positive Sentiment: Major insider buying: Jorey Chernett (a major shareholder) increased his stake with multiple purchases over March 17–19 totaling roughly 1.59M shares across filings, boosting ownership and signaling insider confidence. SEC Form 4 filing Investing.com coverage
• Positive Sentiment: Q4 results modestly beat expectations: EPS of ($0.10) vs. (~$0.12) est. and revenue $41.8M vs. $40.8M expected — a near‑term operational positive but the company remains unprofitable. Earnings call transcript
• Neutral Sentiment: Mixed analyst and institutional profile: MarketBeat notes one Buy and one Sell rating, a consensus “Hold,” active institutional turnover, and wide variance in targets — underlines divergent views and liquidity sensitivity for this small‑cap stock. MarketBeat coverage
• Negative Sentiment: Price‑target reduction from Canaccord: Canaccord cut its target from $7 to $3 (still a Buy), narrowing perceived upside and likely weighing on sentiment despite the maintained rating. Benzinga report
• Negative Sentiment: Short‑term sell pressure / headline reaction: AAII and other outlets highlighted a multi‑percent intraday decline (around 5%), attributing it to the mix of analyst action, profit‑taking after recent moves, and the company’s continued negative margins and leverage. AAII article

Neuronetics Company Profile

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.