Accuray (ARAY) Upgraded at Zacks Investment Research

Zacks Investment Research upgraded shares of Accuray (NASDAQ:ARAY) from a strong sell rating to a hold rating in a research report released on Tuesday.

According to Zacks, “Accuray successfully rides on the market’s solid response to the Radixact platform. Recently, the Radixact X9 received the AERB approval for its sale in India. 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. These upgrades include integrated data management system (IDMS) and Accuray Precision Treatment Planning Software. On the flip side, the company lowered the EBITDA expectations largely due to strategic investments and lower-than-expected gross margins. Long sales and implementation cycle of the CyberKnife and TomoTherapy systems is a headwind, keeping margins under pressure. Furthermore, unfavorable product mix, declining service revenues, sluggish macro-economic conditions and pricing headwinds are major concerns. Accuray has underperformed the industry in the past three months.”

ARAY has been the topic of a number of other research reports. BidaskClub lowered Accuray from a hold rating to a sell rating in a report on Saturday, June 23rd. ValuEngine raised Accuray from a sell rating to a hold rating in a report on Friday, May 18th. Finally, Royal Bank of Canada set a $6.00 price objective on Accuray and gave the company a hold rating in a report on Tuesday, April 10th. Two analysts have rated the stock with a sell rating, four have issued a hold rating and three have issued a buy rating to the company. The company presently has a consensus rating of Hold and a consensus price target of $7.21.

Shares of ARAY opened at $4.05 on Tuesday. Accuray has a twelve month low of $3.60 and a twelve month high of $6.15. The company has a market capitalization of $348.98 million, a price-to-earnings ratio of -11.25 and a beta of 1.71. The company has a debt-to-equity ratio of 3.00, a quick ratio of 0.97 and a current ratio of 1.62.

Accuray (NASDAQ:ARAY) last announced its quarterly earnings data on Monday, April 30th. The medical equipment provider reported ($0.10) earnings per share for the quarter, missing the Zacks’ consensus estimate of ($0.05) by ($0.05). Accuray had a negative net margin of 7.00% and a negative return on equity of 52.91%. The business had revenue of $99.83 million during the quarter, compared to analysts’ expectations of $98.18 million. analysts expect that Accuray will post -0.29 EPS for the current year.

In other news, CFO Kevin Waters sold 14,265 shares of Accuray stock in a transaction that occurred on Tuesday, July 3rd. The shares were sold at an average price of $4.08, for a total transaction of $58,201.20. Following the completion of the sale, the chief financial officer now directly owns 313,995 shares in the company, valued at approximately $1,281,099.60. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CEO Joshua Levine sold 34,235 shares of Accuray stock in a transaction that occurred on Tuesday, July 3rd. The shares were sold at an average price of $4.08, for a total transaction of $139,678.80. Following the sale, the chief executive officer now owns 1,392,518 shares of the company’s stock, valued at $5,681,473.44. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 57,059 shares of company stock valued at $232,801. Insiders own 3.90% of the company’s stock.

Hedge funds have recently bought and sold shares of the company. Sei Investments Co. acquired a new stake in shares of Accuray during the 1st quarter valued at approximately $107,000. Element Capital Management LLC acquired a new stake in shares of Accuray during the 1st quarter valued at approximately $141,000. Redmile Group LLC acquired a new stake in shares of Accuray during the 1st quarter valued at approximately $145,000. Teacher Retirement System of Texas acquired a new stake in shares of Accuray during the 4th quarter valued at approximately $128,000. Finally, MetLife Investment Advisors LLC acquired a new stake in shares of Accuray during the 4th quarter valued at approximately $160,000. Institutional investors own 85.45% of the company’s stock.

About Accuray

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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