Zacks Investment Research Upgrades Obalon Therapeutics (NASDAQ:OBLN) to Buy

Zacks Investment Research upgraded shares of Obalon Therapeutics (NASDAQ:OBLN) from a hold rating to a buy rating in a report issued on Wednesday morning, Zacks.com reports. Zacks Investment Research currently has $2.00 price objective on the stock.

According to Zacks, “Obalon Therapeutics, Inc. is a medical device company. It focused on developing and commercializing medical devices to treat obese and overweight. The company’s product consists of Obalon balloon system, the first swallowable, gas-filled intragastric balloon designed to provide progressive and sustained weight loss in obese patients. Obalon Therapeutics, Inc. is based in San Diego, California. “

Other equities research analysts also recently issued research reports about the company. Northland Securities restated a hold rating on shares of Obalon Therapeutics in a research report on Wednesday, July 24th. ValuEngine upgraded Obalon Therapeutics from a hold rating to a buy rating in a research report on Wednesday, September 4th. Three investment analysts have rated the stock with a hold rating and three have given a buy rating to the stock. The stock has a consensus rating of Buy and a consensus target price of $16.90.

NASDAQ OBLN traded up $0.05 during trading hours on Wednesday, reaching $1.68. 198,449 shares of the stock traded hands, compared to its average volume of 816,048. The stock has a 50 day simple moving average of $1.99 and a two-hundred day simple moving average of $1.47. Obalon Therapeutics has a 1 year low of $1.53 and a 1 year high of $34.00. The company has a debt-to-equity ratio of 0.09, a current ratio of 1.69 and a quick ratio of 1.48. The company has a market cap of $9.31 million, a price-to-earnings ratio of -0.09 and a beta of -4.86.

Obalon Therapeutics (NASDAQ:OBLN) last released its quarterly earnings results on Wednesday, July 24th. The company reported ($0.25) earnings per share for the quarter, beating the Zacks’ consensus estimate of ($0.27) by $0.02. Obalon Therapeutics had a negative return on equity of 253.79% and a negative net margin of 425.36%. The business had revenue of $0.39 million for the quarter, compared to the consensus estimate of $1.82 million. On average, sell-side analysts forecast that Obalon Therapeutics will post -13.1 EPS for the current fiscal year.

In related news, major shareholder Interwest Partners X. Lp acquired 25,000 shares of the firm’s stock in a transaction dated Tuesday, August 6th. The shares were purchased at an average price of $4.00 per share, for a total transaction of $100,000.00. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Kim P. Kamdar acquired 12,500 shares of the firm’s stock in a transaction dated Tuesday, August 6th. The stock was bought at an average price of $4.00 per share, for a total transaction of $50,000.00. The disclosure for this purchase can be found here. Insiders have acquired 45,000 shares of company stock worth $180,000 in the last 90 days. Company insiders own 14.30% of the company’s stock.

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Jane Street Group LLC purchased a new position in shares of Obalon Therapeutics in the second quarter worth about $33,000. Vanguard Group Inc. increased its holdings in shares of Obalon Therapeutics by 132.0% in the second quarter. Vanguard Group Inc. now owns 473,870 shares of the company’s stock worth $331,000 after buying an additional 269,582 shares during the period. Finally, Hoylecohen LLC increased its holdings in shares of Obalon Therapeutics by 95.4% in the second quarter. Hoylecohen LLC now owns 204,850 shares of the company’s stock worth $143,000 after buying an additional 100,000 shares during the period. Hedge funds and other institutional investors own 91.76% of the company’s stock.

Obalon Therapeutics Company Profile

Obalon Therapeutics, Inc, a vertically integrated medical device company, focuses on developing and commercializing medical devices to treat people who are obese and overweight. The company offers the Obalon balloon system designed to provide weight loss in obese patients. Obalon Therapeutics, Inc was founded in 2008 and is headquartered in Carlsbad, California.

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