Market cap of Eargo Inc. [EAR] reaches 33.27M – now what?


Eargo Inc. [NASDAQ: EAR] stock went on an upward path that rose over 0.98% on Wednesday, amounting to a one-week price decrease of less than -12.46%. The company report on July 5, 2022 that Eargo Closes First Tranche Investment of $100 Million from Patient Square Capital.

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Eargo, Inc. (Nasdaq: EAR), a medical device company on a mission to improve the quality of life of people with hearing loss, today announced it has completed the issuance of $100 million aggregate principal amount of senior secured convertible notes to Patient Square Capital on June 28, 2022 (the “First Tranche Investment”).

The Company used approximately $16.3 million of the net proceeds to repay all existing third-party indebtedness and related pay-off expenses, and intends to use the remaining net proceeds for working capital purposes and to fund the Company’s general business requirements.

Over the last 12 months, EAR stock dropped by -97.80%. The one-year Eargo Inc. stock forecast points to a potential upside of 91.9. The average equity rating for EAR stock is currently 3.30, trading closer to a bullish pattern in the stock market.

The market cap for the stock reached $33.27 million, with 39.32 million shares outstanding and 33.97 million shares in the current float. Compared to the average trading volume of 1.04M shares, EAR stock reached a trading volume of 4663945 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Guru’s Opinion on Eargo Inc. [EAR]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for EAR shares is $10.50 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on EAR stock is a recommendation set at 3.30. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

William Blair have made an estimate for Eargo Inc. shares, keeping their opinion on the stock as Mkt Perform, with their previous recommendation back on September 23, 2021. The new note on the price target was released on September 23, 2021, representing the official price target for Eargo Inc. stock. Previously, the target price had yet another drop from $44 to $11, while JP Morgan kept a Underweight rating on EAR stock.

The Average True Range (ATR) for Eargo Inc. is set at 0.15, with the Price to Sales ratio for EAR stock in the period of the last 12 months amounting to 1.72. The Price to Book ratio for the last quarter was 0.80, with the Price to Cash per share for the same quarter was set at 2.28.

EAR Stock Performance Analysis:

Eargo Inc. [EAR] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -12.46. With this latest performance, EAR shares dropped by -34.03% in over the last four-week period, additionally sinking by -83.63% over the last 6 months – not to mention a drop of -97.80% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for EAR stock in for the last two-week period is set at 34.61, with the RSI for the last a single of trading hit 35.37, and the three-weeks RSI is set at 34.42 for Eargo Inc. [EAR]. The present Moving Average for the last 50 days of trading for this stock 1.6885, while it was recorded at 0.8043 for the last single week of trading, and 4.8868 for the last 200 days.

Insight into Eargo Inc. Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and Eargo Inc. [EAR] shares currently have an operating margin of -487.85 and a Gross Margin at +12.97. Eargo Inc.’s Net Margin is presently recorded at -491.11.

Return on Equity for this stock declined to -119.93, with Return on Assets sitting at -80.33.

Eargo Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.40 and a Current Ratio set at 1.50.

Eargo Inc. [EAR] Insider Position Details

There are presently around $18 million, or 61.70% of EAR stock, in the hands of institutional investors. The top three institutional holders of EAR stocks are: NEA MANAGEMENT COMPANY, LLC with ownership of 4,520,670, which is approximately 0% of the company’s market cap and around 0.10% of the total institutional ownership; NAN FUNG GROUP HOLDINGS LTD, holding 2,886,724 shares of the stock with an approximate value of $2.43 million in EAR stocks shares; and NEWTYN MANAGEMENT, LLC, currently with $1.64 million in EAR stock with ownership of nearly 56% of the company’s market capitalization.

Positions in Eargo Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 41 institutional holders increased their position in Eargo Inc. [NASDAQ:EAR] by around 3,560,450 shares. Additionally, 49 investors decreased positions by around 2,972,086 shares, while 12 investors held positions by with 14,598,982 shares. The mentioned changes placed institutional holdings at 21,131,518 shares, according to the latest SEC report filing. EAR stock had 14 new institutional investments in for a total of 448,026 shares, while 22 institutional investors sold positions of 1,101,194 shares during the same period.