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In a recent transaction, KCK LTD., a significant shareholder in NeuroPace Inc (NASDAQ:NPCE), sold a portion of its holdings in the company. On October 22, KCK LTD. sold 4,082 shares of NeuroPace common stock at a price of $6.0885 per share, totaling $24,853. Following this transaction, the company retains ownership of 5,494,983 shares. The sale was disclosed in a Form 4 filing with the Securities and Exchange Commission, signed by Raphael Metz, the Corporate Secretary of KCK LTD.
In other recent news, NeuroPace, a medical device company, has announced a 17% revenue increase in Q2 2024, totaling $19.3 million. This growth is primarily attributed to a 21% surge in sales of its Responsive Neurostimulation (RNS) system, excluding contributions from the NAUTILUS study. The company's strategy to expand RNS system adoption in level four centers and strategic partnerships were key contributors to this increase.
NeuroPace also announced the appointment of Amy Treadwell as Vice President of Human Resources, alongside Brett Wingeier as Vice President of Research and Development, and Katie Keller as Vice President of Marketing. These strategic additions to the leadership team are seen as pivotal for the company's plans to expand the adoption of its RNS therapy.
Looking ahead, NeuroPace forecasts its 2024 revenues to be between $76 million and $78 million, with a gross margin of 72% to 74%. Operating expenses for the year are projected to be between $80 million and $84 million. The company anticipates a 16% to 19% growth rate in 2024, primarily due to increased RNS system sales. These recent developments highlight NeuroPace's strategic efforts to drive growth and innovation.
InvestingPro Insights
The recent sale by KCK LTD. comes at a time when NeuroPace Inc (NASDAQ:NPCE) is facing some market challenges. According to InvestingPro data, the stock has experienced significant volatility, with a 16.78% decline in the past month and a more substantial 56.49% drop over the last six months. This aligns with an InvestingPro Tip indicating that the stock has "taken a big hit over the last six months" and is currently "trading near its 52-week low."
Despite these headwinds, NeuroPace has shown strong revenue growth, with a 30.75% increase in the last twelve months as of Q2 2024, reaching $71.82 million. The company also maintains a healthy gross profit margin of 74.15%. However, an InvestingPro Tip cautions that analysts do not anticipate the company will be profitable this year, which is reflected in the negative operating income of -$24.78 million for the same period.
For investors considering NeuroPace's potential, it's worth noting that the stock is trading at a high Price / Book multiple of 17.25, suggesting a premium valuation despite recent price declines. This information, along with 11 additional InvestingPro Tips, provides a more comprehensive view of NeuroPace's financial health and market position. For those seeking a deeper analysis, InvestingPro offers a wealth of additional insights to inform investment decisions.
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