Neuronetics (NASDAQ:STIM) Stock Breaks Above 50-Day Moving Average – Time to Sell?

Neuronetics, Inc. (NASDAQ:STIM)’s stock price passed above its 50 day moving average during trading on Wednesday. The stock has a 50 day moving average of $2.49 and traded as high as $3.05. Neuronetics shares last traded at $2.70, with a volume of 5,458,097 shares trading hands.

Key Headlines Impacting Neuronetics

Here are the key news stories impacting Neuronetics this week:

• Positive Sentiment: Neuronetics reported Q3 revenue of $41.96 million, up 12.5% year over year and ahead of analyst estimates of about $40.4 million. Its net loss narrowed to $1.7 million, and its loss per share of $0.02 was better than the consensus estimate of a $0.09 loss and the year-ago loss of $0.13 per share. Neuronetics Q3 2026 results
• Positive Sentiment: Major shareholder Jorey Chernett purchased 18,000 shares for about $40,860, adding modestly to an already substantial holding. The buying may be viewed as a confidence signal, though the transaction occurred before the earnings release. Shareholder purchase report
• Neutral Sentiment: The company disclosed inducement awards for 14 non-executive employees. Equity-based awards can support hiring and retention, while potentially diluting shareholders; the announcement does not specify the award details in the provided report. Inducement grant announcement

Analyst Ratings Changes

A number of analysts have recently issued reports on STIM shares. B. Riley Financial started coverage on Neuronetics in a research report on Friday, September 11th. They issued a “buy” rating for the company. Wall Street Zen raised Neuronetics from a “sell” rating to a “hold” rating in a report on Sunday, July 12th. BTIG Research restated a “buy” rating and issued a $6.00 price target on shares of Neuronetics in a research note on Thursday, September 17th. Citigroup reaffirmed a “market outperform” rating on shares of Neuronetics in a report on Tuesday, July 21st. Finally, Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Neuronetics in a research report on Monday, September 14th. Four equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $4.67.

Neuronetics Stock Performance

The firm has a market cap of $205.73 million, a price-to-earnings ratio of -6.14 and a beta of 1.36. The stock’s 50 day moving average is $2.49 and its 200 day moving average is $1.88. The company has a current ratio of 1.88, a quick ratio of 1.69 and a debt-to-equity ratio of 2.84.

Neuronetics (NASDAQ:STIM) last issued its quarterly earnings results on Wednesday, November 4th. The company reported ($0.02) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.09) by $0.07. Neuronetics had a negative return on equity of 125.11% and a negative net margin of 19.62%. The company had revenue of $41.96 million for the quarter, compared to analyst estimates of $40.42 million. Analysts anticipate that Neuronetics, Inc. will post -0.33 earnings per share for the current year.

Insider Transactions at Neuronetics

In other Neuronetics news, major shareholder Jorey Chernett bought 18,000 shares of the stock in a transaction on Friday, October 30th. The stock was purchased at an average price of $2.27 per share, with a total value of $40,860.00. Following the completion of the purchase, the insider owned 10,620,988 shares in the company, valued at $24,109,642.76. The trade was a 0.17% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through the SEC website. 8.40% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Neuronetics

A number of hedge funds have recently made changes to their positions in the stock. T3 Companies LLC bought a new stake in shares of Neuronetics during the 3rd quarter valued at approximately $88,000. Engineers Gate Manager LP acquired a new position in Neuronetics during the 2nd quarter worth approximately $74,000. Squarepoint Ops LLC increased its position in Neuronetics by 151.5% during the 2nd quarter. Squarepoint Ops LLC now owns 94,616 shares of the company’s stock worth $123,000 after purchasing an additional 57,000 shares in the last quarter. Hsbc Holdings PLC bought a new position in Neuronetics in the 2nd quarter valued at approximately $50,000. Finally, Madryn Asset Management LP bought a new position in Neuronetics in the 2nd quarter valued at approximately $24,102,634. 53.59% of the stock is currently owned by institutional investors and hedge funds.

About Neuronetics

Neuronetics, Inc is a medical technology company that develops and commercializes noninvasive treatments for psychiatric and neurological disorders. Its primary product is NeuroStar TMS Therapy, which uses transcranial magnetic stimulation to deliver targeted magnetic pulses to areas of the brain associated with mood regulation.

NeuroStar TMS Therapy is cleared by the U.S. Food and Drug Administration for treating major depressive disorder in adults and adolescents, obsessive-compulsive disorder, and depression with anxious distress.