Ekso Bionics Holdings Inc (NASDAQ: EKSO) has taken a significant hit ever since it reported a net loss in Q1. Revenue lagging estimates all but compounded the stock’s woes fuelling a sell-off that has since plunged the stock to where it started the year at. It now appears the stock might as well have hit the floor and likely to bottom out.
Ekso Bionics Holdings Inc Price Analysis
The stock has since bounced off the $1.40 support level waiting to see if it will re-rate higher as a bounce-back play. Revenue growth in the recent quarter, as well as expansion in gross margins, are some of the positives that continue to affirm investor confidence in the stock.
A decline in operating expenses is another development that should continue to prop the stock’s market sentiments. The Company has also closed a $10 million public offering gaining access to much-needed finances for pursuing strategic initiatives.
While bears remain in control given the underlying long-term bear trend, Ekso Bionics could bounce back having hit a key support level. Above the $1.30 level, the stock remains well supported for further upside action.
Ekso Bionics may have to rise and find support above the $2 mark, to avert further slides in continuation of the long-term bear trend. Below the crucial resistance level, the stock remains vulnerable to further drops. A break of the $1.30 support level, could result in bears pushing the stock even lower.
About Ekso Bionics Holdings Inc
Ekso Bionics Holdigns Inc is a company focused on the development of exoskeletons used on the healthcare industrial and military sectors. Its lead product is the Ekso GT bionic suit, designed to enable mobility for people with spinal cord injuries and hemiplegia.
Ekso Bionics is fresh from closing a $10 million public offering whereby it issued 6.7 million shares priced at $1.50 a share. The Company intends to use net proceeds from the offering for general corporate purposes. In addition, the exoskeleton giant is considering potential acquisitions that will help strengthen its core business.
The filling of the public offering came on the heels of the Company delivering what it says was a record-breaking quarter, in revenue generation. Revenues in the quarter increased by 44% to $3.6 million up from $2.5 million generated the previous year. However, they missed consensus estimates by 9.08%. Gross margin in the quarter expanded to 44% from 30% the previous year.
“We are very pleased with the continued momentum generated by our commercial strategy, which reflects a growing level of adoption and awareness for our innovative EksoHealth and EksoWorks exoskeletons. As we continue strengthening our sales performance, we are also pleased that our strategic focus on reducing our cost structure resulted in significantly improved year-over-year operating margins,” said CEO Jack Peurach.
According to the CEO, focus going forward is on building a deeper global customer pipeline through an expanded sale network. The Company is also planning to deliver the highest levels of customer support.
Ekso Bionics Exoskeleton Gaining Traction
Separately, the Company’s exoskeleton solutions are drawing immense interest around the world, pointing to a bright future going forward. The National University of Health System in Singapore has already commenced studies on how the Company’s exoskeleton technology can help improve mobility and rehabilitation outcomes.
The studies should go a long way in supporting the Ekso Bionics expansion plan in the Asia Pacific. The Company’s exoskeleton solutions are already deployed in Singapore, Hong Kong, and Australia. The solutions have also helped patients make more than 100 million steps in rehabilitation institutions around the world.
“The core mission of Ekso is to help people re-learn how to stand and walk after a stroke or spinal cord injury. We want the EksoGT systems to be widely accessible to people who never thought they could walk or stand up again,” commented Ms. Lim Chwee Foon, President, Asia Pacific, and Ekso Bionics. “This will serve as a solid platform for our growth in Asia.”
While Ekso underperformed in the second quarter, after a stellar performance in the first quarter, the stock has once again shown signs of bottoming out. The stock appears to have hit the floor and found support at the $1.30 mark. Revenue growth, as well as margin expansion, are some of the developments that look set to fuel a rally from current lows.
We will be updating our subscribers as soon as we know more. For the latest updates on EKSO, sign up below!
Disclosure: We have no position in EKSO and have not been compensated for this article.