RA Medical Systems Inc (NYSEAMERICAN: RMED) stock price rallied 21% premarket despite not releasing any critical news before the open.
However, the rally could have been triggered by HC Wainwright & Co. initial coverage of the stock, where its analysts issued a buy rating on the stock with a price target of $12.
Ra Medical is considered a low stock float given that the number of its outstanding shares is 6.7 million, which could make it the target of a short squeeze given that it once traded above $9.
The last significant announcement from Ra Medical was in August when it reported its second-quarter results where it generated net revenues of $1.0 million made up of $0.7 million in service and other revenues, while $0.3 million was from product sales.
The medical device company reported a net loss of $5.2 million in Q2 2021 compared to a $10.2 million net loss in Q2 2020. In addition, the firm was able to reduce its selling, general and administrative expenses during Q2.
Ra medical also reported its six-month results where it made net sales worth $2.1 million, a slight drop to the $2.3 million in net sales generated in Q2 2020.
However, the firm reduced its selling, general and administrative costs to $7.9 million compared to last year’s $14.2 million, which improved performance.
Today’s rally can be attributed to investors flocking to Ra Medical after analysts started covering its stocks with a positive outlook and a buy rating.
Meanwhile, Ra Medical shares should break above the next resistance level at $3.65 to rise to new highs. However, investors could also look to short the stock if it bounces off the resistance level and heads lower.
*This is not investment advice.
RA Medical stock price.
Ra Medical Systems stock price rallied 21% premarket to trade at $3.63, rising from Wednesday’s closing price of $3.00.
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