Stock Trade of the Week: BioTelemetry (BEAT)

BioTelemetry (Nasdaq: BEAT) — is a medical technology company that provides remote cardiac monitoring, remote blood glucose monitoring, core lab services for clinical trials, and original equipment manufacturing services for healthcare and clinical research. The company is headquartered in Malvern, Pennsylvania and was founded in 1994.

BioTelemetry has seen earnings grow by an average of 48% per year over the last three years while sales have grown at a rate of 36%. In the most recent quarter, earnings increased by 8% while revenues increased by 10%.

The management efficiency ratings for the company are above average as well with a return on equity of 24.8% and a profit margin of 17.2%.

One of the more interesting aspects of the analysis on BioTelemetry is the sentiment toward the stock, specifically the analysts’ ratings.

There are only five analysts following the stock at this time.

All five have the stock rated as a “buy”, but the small total is surprising for a company with a market cap of $2 billion and average daily trading volume of 576,000 shares.

The short interest ratio is currently at 4.65 and that is up from 3.51 at the end of April.

It is also the highest reading on the ratio since the end of January.

Looking at the chart we see that the stock is hitting two layers of support. The 104-week moving average is currently at $46.21 and should help support the stock. The last time the stock was near its 104-week was in early 2016. There is also a trend line that connects the lows from the fall of 2017, the spring of 2018, and the current price level.

Suggested strategy: Buy EXPD with a maximum entry price of $48.50. I would set a target of at least $65 over the next six to nine months. I would suggest a stop loss at the $43.50 level.

— Rick Pendergraft

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