RadNet $RDNT Stock In Uptrend Channel

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Radnet $RDNT stock is showing excellent relative strength as it trades above its 200 day moving average in an uptrend channel. Investors are adding the stock to their watch lists in hopes of taking a candle over candle entry in the stock.

RadNet stock chart on March 12 2023 in uptrend channel
RadNet stock chart on March 12, 2023, in uptrend channel

RadNet is a medical diagnostic imaging company that provides outpatient diagnostic imaging services, including magnetic resonance imaging (MRI), computed tomography (CT), positron emission tomography (PET), nuclear medicine, mammography, ultrasound, and X-ray services. They operate imaging centers throughout the United States and offer diagnostic imaging services to patients, physicians, and healthcare providers. Additionally, RadNet operates a national network of radiologists who provide diagnostic interpretations and consultations to their customers. RadNet uses artificial intelligence with its Enhanced Breast Cancer Detection mammography tool, also known as EBCD, to detect cancer.

RadNet upgraded at Raymond James

RadNet was upgraded to Outperform from Market Perform with a $30 price target on March 3, 2023 by Raymond James analyst John Ransom. In a research note, the analyst informs investors that the company’s Q4 results exceeded expectations and that management gave additional context on the artificial intelligence segment. The upgrade is based on a core business that is supported by structural tailwinds, the removal of the AI overhang due to improved strategic visibility, and a fair valuation that leaves plenty of room for growth if the stock can establish a reputation as a reliable compounder.

RadNet Reports Fourth Quarter 2022 Results

On February 28, 2023, RadNet reported Q4 adjusted EPS of 11c versus the consensus estimate of 15c. The company reported Q4 revenue of $383.9M versus the consensus estimate of $347.27M.

CEO Howard Berger said, “I am very pleased with our strong performance in Q4, which enabled us to exceed our 2022 full-year revised guidance ranges for Revenue and Adjusted EBITDA. Contributing to our record Revenue and Adjusted EBITDA in the quarter was a combination of high procedural demand for our services and improving conditions in our labor markets…At year-end 2022, we had a cash balance of over $127M and our net debt leverage ratio remained under 3.5 times Adjusted EBITDA. Our Days Sales Outstanding remained low at 39 days as of December 31, 2022, helping to contribute to our strong cash flow in the quarter and throughout 2022. Moving into 2023, the demand for diagnostic imaging remains robust and is growing. Our solid financial position and operating model have presented us with targeted opportunities to expand our business, particularly through the construction of new centers to meet the growing demand and utilization in strategic markets. Currently, we have over a dozen centers in various stages of construction and development, and we believe these sites should be positive contributors to our performance in 2023…Based upon early adoption data from several of our east coast markets, we are anticipating our losses from AI in 2023 to significantly narrow as a result of EBCD revenue, and we project our AI segment to be profitable in 2024.”

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