Zacks Investment Research Lowers Accuray (ARAY) to Hold

Accuray (NASDAQ:ARAY) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Wednesday.

According to Zacks, “Over the past year, Accuray has underperformed the broader industry. However, the company reported impressive second quarter of fiscal 2018 results. Also, the company reiterated its guidance for fiscal 2018. 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. Accuray’s significant international presence helps broaden its customer base. On the flip side, long sales and implementation cycles of the CyberKnife and TomoTherapy systems is a headwind. 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.”

A number of other research analysts also recently issued reports on ARAY. BidaskClub downgraded Accuray from a “buy” rating to a “hold” rating in a research note on Thursday, February 8th. Royal Bank of Canada set a $6.00 price objective on Accuray and gave the company a “hold” rating in a research note on Wednesday, January 24th. JPMorgan Chase & Co. downgraded Accuray from a “neutral” rating to an “underweight” rating and set a $6.00 price objective for the company. in a research note on Wednesday, December 13th. Lake Street Capital began coverage on Accuray in a research note on Thursday, November 30th. They set a “buy” rating and a $10.00 price objective for the company. Finally, Cowen reiterated a “buy” rating and set a $9.00 price objective on shares of Accuray in a research note on Friday, October 27th. One research analyst has rated the stock with a sell rating, four have given a hold rating and four have given a buy rating to the stock. Accuray presently has an average rating of “Hold” and a consensus price target of $7.13.

Accuray (NASDAQ:ARAY) traded up $0.05 during midday trading on Wednesday, hitting $5.10. 637,500 shares of the stock traded hands, compared to its average volume of 1,280,753. Accuray has a 12-month low of $3.60 and a 12-month high of $6.15. The stock has a market cap of $435.00, a price-to-earnings ratio of -17.59 and a beta of 1.76. The company has a quick ratio of 0.99, a current ratio of 1.54 and a debt-to-equity ratio of 2.66.

Accuray (NASDAQ:ARAY) last released its quarterly earnings results on Tuesday, January 23rd. The medical equipment provider reported ($0.06) EPS for the quarter, beating the Thomson Reuters’ consensus estimate of ($0.11) by $0.05. Accuray had a negative net margin of 6.09% and a negative return on equity of 44.66%. The firm had revenue of $100.33 million during the quarter, compared to analyst estimates of $90.31 million. During the same quarter in the prior year, the firm earned ($0.11) EPS. The business’s revenue for the quarter was up 14.7% compared to the same quarter last year. analysts forecast that Accuray will post -0.19 EPS for the current fiscal year.

In other Accuray news, CEO Joshua Levine sold 17,093 shares of the company’s stock in a transaction that occurred on Friday, December 1st. The stock was sold at an average price of $4.86, for a total value of $83,071.98. Following the completion of the transaction, the chief executive officer now directly owns 1,435,428 shares in the company, valued at approximately $6,976,180.08. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Kevin Waters sold 7,154 shares of the company’s stock in a transaction that occurred on Friday, December 1st. The stock was sold at an average price of $5.06, for a total value of $36,199.24. Following the completion of the transaction, the chief financial officer now owns 335,087 shares of the company’s stock, valued at $1,695,540.22. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 26,413 shares of company stock valued at $129,798. 3.90% of the stock is currently owned by corporate insiders.

Hedge funds have recently bought and sold shares of the business. Aperio Group LLC bought a new position in Accuray in the 3rd quarter worth approximately $111,000. Teacher Retirement System of Texas bought a new position in Accuray in the 4th quarter worth approximately $128,000. Bank of Nova Scotia bought a new position in Accuray in the 2nd quarter worth approximately $168,000. AHL Partners LLP boosted its stake in Accuray by 28.4% in the 2nd quarter. AHL Partners LLP now owns 39,823 shares of the medical equipment provider’s stock worth $189,000 after purchasing an additional 8,817 shares during the period. Finally, UBS Asset Management Americas Inc. boosted its stake in Accuray by 253.5% in the 2nd quarter. UBS Asset Management Americas Inc. now owns 41,697 shares of the medical equipment provider’s stock worth $198,000 after purchasing an additional 29,900 shares during the period. Institutional investors and hedge funds own 80.49% of the company’s stock.

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About Accuray

Accuray Incorporated is a radiation oncology company. The Company develops, manufactures and markets medical devices used in radiation therapy for the treatment of cancer patients. Its products include the CyberKnife Systems, the TomoTherapy Systems, and the Radixact Delivery Treatment Platform. Its technologies, the CyberKnife and TomoTherapy Systems, are designed to deliver treatments, including stereotactic radiosurgery (SRS), stereotactic body radiation therapy (SBRT), intensity modulated radiation therapy (IMRT), image guided radiation therapy (IGRT) and adaptive radiation therapy.

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