NEW YORK (TheStreet) -- Shares of Stereotaxis (STXS) are soaring on heavy trading volume, up 23.38% to $1.90 today, after announcing that it has received 510(k) clearance by the FDA for its Vdrive(R) with V-CAS(TM) Catheter Advancement System in the U.S.
The Missouri-based manufacturer of robotic systems and instruments for use primarily by electrophysiologists for the treatment of abnormal heart rhythms known as cardiac arrhythmias, said it is the third Vdrive system product to be cleared for market entry.
The company also announced that it has received regulatory approval of its Odyssey(R) product line by the Japan Pharmaceuticals and Medical Devices Agency, the country's equivalent to the FDA.
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About 2.32 million shares changed hands by 12:03 p.m. in New York, compared to the average of 103,643 shares.
Separately, TheStreet Ratings team rates STEREOTAXIS INC as a Sell with a ratings score of E+. TheStreet Ratings Team has this to say about their recommendation:
"We rate STEREOTAXIS INC (STXS) a SELL. This is based on some significant below-par investment measures, which should drive this stock to significantly underperform the majority of stocks that we rate. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and generally disappointing historical performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Net operating cash flow has decreased to -$2.34 million or 43.67% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- STXS's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 59.12%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- STEREOTAXIS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, STEREOTAXIS INC reported poor results of -$5.70 versus -$1.60 in the prior year.
- STXS, with its decline in revenue, underperformed when compared the industry average of 7.2%. Since the same quarter one year prior, revenues fell by 18.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- The gross profit margin for STEREOTAXIS INC is currently very high, coming in at 75.55%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, STXS's net profit margin of 0.24% significantly trails the industry average.
- You can view the full analysis from the report here: STXS Ratings Report