Analysts at Wall Street Zen have downgraded the stock rating of Brainsway Ltd. (NASDAQ:BWAY) from a “buy” to a “hold” in a note issued to investors on November 24, 2023. This decision reflects a cautious outlook amid varying assessments from other analysts following the company’s recent earnings report.
Analyst Ratings and Price Targets
Several financial institutions have recently adjusted their ratings and price targets for Brainsway. On November 13, 2023, HC Wainwright raised its target price from $17.00 to $18.00, maintaining a “buy” recommendation. Conversely, Weiss Ratings reiterated a “hold (c)” rating on the same day as Wall Street Zen’s downgrade. Furthermore, on November 12, 2023, Northland Securities increased their price objective from $19.00 to $23.00 and labeled the stock as “outperform.” Currently, two analysts rate the stock as a “buy,” while one has assigned it a “hold” rating.
According to data from MarketBeat, the overall consensus for Brainsway is a “Moderate Buy,” with an average target price set at $20.50.
Recent Earnings Results
Brainsway released its latest earnings results on November 11, 2023. The company reported earnings per share (EPS) of $0.08 for the quarter, falling short of the consensus estimate of $0.11 by $0.03. Despite this miss, Brainsway generated revenue of $13.51 million, surpassing analyst expectations of $13.04 million. The firm reported a return on equity of 9.46% and a net margin of 12.73%. Sell-side analysts anticipate that the company will achieve an EPS of $0.08 for the current fiscal year.
Institutional Investor Activity
Institutional investors have been actively adjusting their stakes in Brainsway. NewEdge Advisors LLC increased its holdings by 7.4% during the third quarter, now owning 28,629 shares valued at approximately $431,000. Similarly, Zuckerman Investment Group LLC raised its stake by 5.3%, holding 40,000 shares worth about $603,000. Other notable increases include Huntleigh Advisors Inc., which lifted its position by 5.7%, bringing its total to 77,416 shares valued at around $1,018,000.
During the second quarter, Raymond James Financial Inc. and Bank of America Corp DE also acquired new positions in Brainsway, worth approximately $85,000 and $107,000 respectively. Currently, institutional investors own approximately 30.11% of Brainsway’s stock.
Brainsway Ltd. specializes in developing and marketing noninvasive neurostimulation treatments for various mental health disorders, both in the United States and internationally. Its flagship product is the Deep Transcranial Magnetic Stimulation platform, which targets conditions such as major depressive disorders, anxiety, obsessive-compulsive disorders, and more.
As analysts continue to evaluate the company’s performance and market potential, investors are urged to monitor future developments closely.
