Is NeuroMetrix Inc. (NASDAQ:NURO) living on borrowed time?


Shares of NeuroMetrix, Inc. (NASDAQ:NURO) are currently poised at -0.49% from the open today and are trading at $4.05. More than 46,957 shares have exchanged hands compared to an average trading volume of 203.38K. At the current pps, the market cap stands at $5.14M. The stock prices of NeuroMetrix, Inc. (NASDAQ:NURO) are currently trading at -10.00% below its 52 week high and 962.43% above its 52 week low.

NeuroMetrix, Inc. (NASDAQ:NURO) has been in the news for all the right reasons. Recently, NeuroMetrix, Inc. (NASDAQ:NURO) announced the launch of LivingQuell, a blog that will serve as an online resource for people affected by chronic pain – as well as the rapidly growing user base of the company’s Quell(R) Wearable Pain Relief Technology(TM).

NeuroMetrix, Inc. (NASDAQ:NURO) is all set to announce its earnings on Apr 20/b. As per Zack’s analyst ratings, NeuroMetrix, Inc. (NASDAQ:NURO) currently has an average brokerage rating of 1. On a scale of 1 to 5, a rating of 1 or 2 would indicate a buy, and a rating of 4 or 5 would signify a sell recommendation. A rating of 3 would indicate a hold on the stock. The consensus target price on (NASDAQ:NURO) is $16 with a high of $16 and a low of $16.

Let’s take a look at the technical analysis.

The Barchart Technical Opinion rating is a 64% Sell with a Strengthening short term outlook on maintaining the current direction. Longer term, the trend strength is Weak. Long term indicators fully support a continuation of the trend.

The Exponential Moving Average (EMA) is similar to a simple moving average (average price over a set period) but it utilizes a weighting factor that exponentially declines from the most recent data point (recent prices are weighted higher than oil prices). EMA analysis compares the short term (5 days and 13 days), intermediate term (20 days) and long term (50 days) EMA’s. The respective EMA’s will give bullish signals when trading above trailing EMA’s and below the current price and vice versa. EMA alerts include crossovers (i.e the 5 day EMA crosses above/below the 20 day EMA) and EMA convergencies (5 day EMA equivalent to 13 day EMA). Currently, the 5 day EMA 4.00 is lower than the last trade price suggesting a short term bullish pattern building up. Long term, the 50 day EMA 4.67 is higher than current trading price depicting a bearish pattern.

The relative strength index (RSI) is a momentum oscillator that is able to measure the velocity and magnitude of stock price changes. Momentum is calculated as the ratio of positive price changes to negative price changes. The RSI analysis compares the current RSI against neutral(50), oversold (30) and overbought (70) conditions. Alerts will inform you when stocks recede from oversold/overbought levels or breakthrough neutral (50). The current RSI is 42.34 suggesting a bearish price action.

As such, while we believe NeuroMetrix, Inc. (NASDAQ:NURO) represents a compelling growth story exposed to several secularly attractive markets, it would be interesting to see how it fairs for long-term investors.

Neurometrix is a medical device company establishing a new standard of care through the design, development and sale of proprietary products used to diagnose neuropathies. Neuropathies are diseases of the peripheral nerves and parts of the spine that frequently are caused by or associated with diabetes, low back pain and carpal tunnel syndrome, as well as other clinical disorders.