Wall Street analysts’ outlook for Eargo Inc. (EAR)

Eargo Inc. (NASDAQ: EAR) stock fell -17.10% on Monday to $12.07 against a previous-day closing price of $14.56. With 0.4 million shares changed hands, the volume of the stock remained heavier than its average volume of 88560.0 shares. During the session, the Medical Devices company that operates in wider Healthcare sector, reached to the highest price of $15.48 whereas the lowest price it dropped to was $12.07. The 52-week range on EAR shows that it touched its highest point at $116.80 and its lowest point at $9.60 during that stretch.

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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 EAR was up-trending over the past week, with a rise of 8.70%, but this was up by 2.29% over a month. Three-month performance dropped to -15.59% while six-month performance fell -24.60%. The stock lost -87.73% in the past year, while it has gained 4.96% so far this year. A look at the trailing 12-month EPS for EAR yields -80.92 with Next year EPS estimates of -31.50. For the next quarter, that number is -6.40. This implies an EPS growth rate of -416.80% for this year and 47.80% for next year.

Float and Shares Shorts:

At present, 20.72 million EAR shares are outstanding with a float of 3.62 million shares on hand for trading. On Dec 29, 2022, short shares totaled 0.22 million, which was 0.05% higher than short shares on Nov 29, 2022. In addition to Mr. Christian Gormsen as the firm’s CEO, Pres & Director, Mr. Adam Laponis serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 3.49% of EAR’s outstanding shares, institutional investors have minority control over the company. Other institutions hold — of EAR, in contrast to — held by mutual funds. Shares owned by individuals account for –.

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, EAR reported revenue of $7.25M and operating income of -$31.44M. The EBITDA in the recently reported quarter was -$30.09M and diluted EPS was -$16.40.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for EAR since 2 analysts follow the stock currently. There are 0 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 1 believe that the stock is worth HOLDING, 0 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 EAR analysts setting a high price target of $40.00 and a low target of $40.00, the average target price over the next 12 months is $40.00. Based on these targets, EAR could surge 231.4% to reach the target high and rise by 231.4% to reach the target low. Reaching the average price target will result in a growth of 231.4% 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. EAR will report FY 2022 earnings on 02/23/2024. Analysts have provided yearly estimates in a range of -$54.99 being high and -$65.81 being low. For EAR, this leads to a yearly average estimate of -$60.40. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Eargo Inc. surprised analysts by -$12.93 when it reported -$24.20 EPS against a consensus estimate of -$11.27. The surprise factor in the prior quarter was -$9.86. Based on analyst estimates, the high estimate for the next quarter is -$1.06 and the low estimate is -$11.89. The average estimate for the next quarter is thus -$6.47.

Summary of Insider Activity:

Insiders traded EAR stock several times over the past three months with 6 Buys and 4 Sells. In these transactions, 568,994 shares were bought while 3,370 shares were sold. The number of buy transactions has increased to 8 while that of sell transactions has risen to 22 over the past year. The total number of shares bought during that period was 588,142 while 43,623 shares were sold.

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