Analysts have assigned a consensus rating of “Moderate Buy” to NeuroPace, Inc. (NASDAQ:NPCE), as reported by MarketBeat. This assessment comes from a review of eight brokerages currently monitoring the company. Among these, one analyst suggested a sell recommendation, another recommended holding, while six analysts endorsed buying the stock.
The average twelve-month price target for NeuroPace among these analysts stands at $18.50. Various research firms have recently provided insights into the stock’s performance. For instance, on November 5, 2023, Leerink Partners reaffirmed an “outperform” rating and set a price objective of $19.00. Conversely, Weiss Ratings issued a “sell (e+)” rating on December 15, 2023, indicating a more cautious outlook.
JPMorgan Chase & Co. adjusted its target for NeuroPace from $18.00 to $20.00 with an “overweight” rating noted in a report dated December 10, 2023. Similarly, Wells Fargo & Company raised its price target from $15.00 to $16.00, also giving the stock an “overweight” designation. In a more optimistic assessment, UBS Group lifted its target from $18.00 to $22.00 with a “buy” rating, reflecting a growing confidence in the company’s future.
Recent Financial Performance
NeuroPace recently released its quarterly earnings report on November 4, 2023. The company reported earnings per share of ($0.11), surpassing analyst expectations of ($0.20) by $0.09. Revenue for the quarter reached $27.35 million, significantly higher than the projected $24.64 million. Despite this positive earnings surprise, the company recorded a negative net margin of 25.28% and a negative return on equity of 136.60%. Analysts predict that NeuroPace will report a loss of ($1.00) earnings per share for the current year.
Institutional Investor Activity
A number of hedge funds and institutional investors have recently adjusted their stakes in NeuroPace. Ameritas Investment Partners Inc., for example, increased its position by 83.6% in the second quarter, acquiring an additional 1,118 shares to bring its total to 2,455 shares valued at approximately $27,000. Legal & General Group Plc also expanded its holdings by 86.0%, now owning 2,679 shares worth about $30,000.
Quantbot Technologies LP entered a new position in NeuroPace during the same quarter, investing nearly $35,000. Quarry LP boosted its stake by 94.9% in the third quarter, acquiring an additional 1,872 shares to reach a total of 3,845 shares valued at approximately $40,000. Additionally, Police & Firemen’s Retirement System of New Jersey increased its holdings by 72.0%, now owning 6,371 shares valued at around $71,000. Notably, institutional investors collectively hold 78.83% of NeuroPace’s stock.
NeuroPace, based in Mountain View, California, specializes in developing innovative neuromodulation systems aimed at treating neurological disorders. Founded in the late 1990s from research conducted at Stanford University, the company focuses on delivering closed-loop, “smart” therapies that monitor and respond to brain activity. NeuroPace launched its initial public offering in 2020 and trades under the ticker NPCE. Its flagship product, the RNS® System, is designed for adults suffering from medically refractory focal epilepsy.
As NeuroPace continues to navigate its market position, the analysts’ ratings and institutional interest suggest a cautiously optimistic outlook for the company’s future growth.
