Is InMode Ltd. (INMD) positioned for future growth?

InMode Ltd. (NASDAQ: INMD) stock jumped 0.03% on Monday to $34.32 against a previous-day closing price of $34.31. With 1.01 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.35 million shares. During the session, the Medical Devices company that operates in wider Healthcare sector, reached to the highest price of $35.09 whereas the lowest price it dropped to was $34.00. The 52-week range on INMD shows that it touched its highest point at $54.68 and its lowest point at $20.60 during that stretch. It currently has a 1-year price target of $50.40. Beta for the stock currently stands at 2.17.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of INMD was up-trending over the past week, with a rise of 4.95%, but this was down by -2.56% over a month. Three-month performance surged to 5.34% while six-month performance rose 20.42%. The stock lost -24.19% in the past year, while it has lost -3.87% so far this year. A look at the trailing 12-month EPS for INMD yields 2.06 with Next year EPS estimates of 2.64. For the next quarter, that number is 0.67. This implies an EPS growth rate of 115.20% for this year and 14.09% for next year. EPS is expected to grow by 33.20% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 225.40%.

Float and Shares Shorts:

At present, 82.31 million INMD shares are outstanding with a float of 69.17 million shares on hand for trading. On Dec 29, 2022, short shares totaled 4.84 million, which was 5.82% higher than short shares on Nov 29, 2022. In addition to Mr. Yair Malca as the firm’s Chief Financial Officer, Mr. Alon Yaari serves as its VP of Operations.

Institutional Ownership:

Through their ownership of 58.78% of INMD’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 40.91% of INMD, in contrast to 14.36% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in INMD with 3.42% of the stake, Acadian Asset Management LLC holds 2,836,906 shares worth 2,836,906. A second-largest stockholder of INMD, Renaissance Technologies LLC, holds 2,297,662 shares, controlling over 2.77% of the firm’s shares. Meitav Mutual Funds Ltd. is the third largest shareholder in INMD, holding 1,631,056 shares or 1.96% stake. With a 0.61% stake in INMD, the Wasatch Small Cap Value Fund is the largest stakeholder. A total of 504,895 shares are owned by the mutual fund manager. The LO Funds – Golden Age, which owns about 0.60% of INMD stock, is the second-largest Mutual Fund holder. It holds 500,000 shares valued at 17.85 million. Putnam Small Cap Growth Fund holds 0.56% of the stake in INMD, owning 466,698 shares worth 16.66 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Sep 29, 2022, INMD reported revenue of $113.55M and operating income of $49.20M. The EBITDA in the recently reported quarter was $49.36M and diluted EPS was $0.52.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for INMD since 5 analysts follow the stock currently. There are 3 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 0 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With INMD analysts setting a high price target of $60.00 and a low target of $44.00, the average target price over the next 12 months is $50.40. Based on these targets, INMD could surge 74.83% to reach the target high and rise by 28.21% to reach the target low. Reaching the average price target will result in a growth of 46.85% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. INMD will report FY 2022 earnings on 02/08/2024. Analysts have provided yearly estimates in a range of $2.38 being high and $2.29 being low. For INMD, this leads to a yearly average estimate of $2.31. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. InMode Ltd. surprised analysts by $0.07 when it reported $0.66 EPS against a consensus estimate of $0.58. The surprise factor in the prior quarter was $0.08. Based on analyst estimates, the high estimate for the next quarter is $0.74 and the low estimate is $0.63. The average estimate for the next quarter is thus $0.67.

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