Zacks Investment Research lowered shares of Accuray (NASDAQ:ARAY) from a buy rating to a hold rating in a research note issued to investors on Tuesday.
According to Zacks, “Accuray has underperformed its industry in a year's time. 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. On the flip side, 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. Cutthroat competition in the niche space adds to woes.”
A number of other research analysts have also recently weighed in on the company. BidaskClub cut Accuray from a buy rating to a hold rating in a report on Thursday, February 8th. Royal Bank of Canada set a $6.00 target price on Accuray and gave the company a hold rating in a report on Wednesday, January 24th. JPMorgan Chase & Co. cut Accuray from a neutral rating to an underweight rating and set a $6.00 target price on the stock. in a report on Wednesday, December 13th. Finally, Lake Street Capital began coverage on Accuray in a report on Thursday, November 30th. They issued a buy rating and a $10.00 target price on the stock. One research analyst has rated the stock with a sell rating, four have assigned a hold rating and three have assigned a buy rating to the company’s stock. Accuray currently has a consensus rating of Hold and an average target price of $7.21.
Accuray (NASDAQ:ARAY) last issued its earnings results on Tuesday, January 23rd. The medical equipment provider reported ($0.06) earnings per share for the quarter, beating the Zacks’ consensus estimate of ($0.11) by $0.05. Accuray had a negative return on equity of 44.66% and a negative net margin of 6.09%. The firm had revenue of $100.33 million for the quarter, compared to analysts’ expectations of $90.31 million. During the same quarter last year, the firm earned ($0.11) earnings per share. The firm’s revenue for the quarter was up 14.7% compared to the same quarter last year. analysts anticipate that Accuray will post -0.19 earnings per share for the current year.
A number of large investors have recently added to or reduced their stakes in the business. BlackRock Inc. raised its position in Accuray by 18.3% in the fourth quarter. BlackRock Inc. now owns 7,353,564 shares of the medical equipment provider’s stock valued at $31,621,000 after purchasing an additional 1,138,095 shares during the period. Neuberger Berman Group LLC raised its position in Accuray by 9.9% in the third quarter. Neuberger Berman Group LLC now owns 5,272,695 shares of the medical equipment provider’s stock valued at $21,091,000 after purchasing an additional 473,008 shares during the period. Vident Investment Advisory LLC raised its position in Accuray by 75.4% in the third quarter. Vident Investment Advisory LLC now owns 4,899,643 shares of the medical equipment provider’s stock valued at $19,599,000 after purchasing an additional 2,106,215 shares during the period. Renaissance Technologies LLC raised its position in Accuray by 8.3% in the fourth quarter. Renaissance Technologies LLC now owns 4,554,000 shares of the medical equipment provider’s stock valued at $19,582,000 after purchasing an additional 347,500 shares during the period. Finally, Heartland Advisors Inc. raised its position in Accuray by 16.6% in the fourth quarter. Heartland Advisors Inc. now owns 3,396,140 shares of the medical equipment provider’s stock valued at $14,603,000 after purchasing an additional 484,500 shares during the period. 82.00% of the stock is currently owned by institutional investors.
Accuray Incorporated designs, develops, and sells radiosurgery and radiation therapy systems for the treatment of tumors in the body. The company offers the CyberKnife System, a robotic stereotactic radiosurgery and stereotactic body radiation therapy system used for the treatment of various types of cancer and tumors in the body.
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