The shares of Asensus Surgical (NYSEMKT:ASXC) are heating up again among penny stock investors. The ASXC stock price increased as much as 8% in pre-market trading on Wednesday morning after new analyst coverage was announced.
Asensus Surgical is a company pioneering “a new standard of surgery for increased control, less variability and consistently superior outcomes.” The company’s offerings are aimed at integrating machine learning and automated intelligence to improve surgical outcomes. Specifically, Asensus’ focus is on laparoscopic surgical procedures.
Today’s move is just the latest in the up-and-down price action on ASXC stock. A year ago, shares were 33 cents a piece. By the end of 2020, investors pushed that to 63 cents. A thrilling bull run in January and February peaked at $6.95 a share on Feb. 10 before a pullback to $4.15 on March 19. But that was nothing. By April 20, the share price bottomed at $1.48. It’s clawed back in the past month to yesterday’s close at $2.03.
Analysts at H.C. Wainwright initiated coverage on ASXC stock today with a “buy” rating. The coverage comes less than two weeks after Asensus released its first-quarter results, reporting revenue of $2.1 million as compared to $600,000 in the three months ended March 31, 2020. Revenue in the first quarter of 2021 included $1.3 million in its Senhance Surgical System sales, $400,000 in instruments and accessories, and $400,000 in services.
ASXC Stock Roller Coaster Buoyed by Product News
On Jan. 19, the company announced that it had received CE Mark approval for the intelligent surgical unit (ISU) that enables machine vision capabilities on its Senhance System. On March 3, the company announced it had received an additional U.S. FDA clearance for that platform. This clearance will allow for the system’s indication expansion in general surgery in the U.S.
Given the impact the pandemic has had on elective surgical procedures, investors seem to be betting on a significant surge in demand in the coming months.
As with any penny stock, the best strategy is to gather the available data and if you still like the company, stay in the trade until there’s a compelling reason to sell your shares.
On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, including previous stints with Bloomberg News and as a buyside equity research editor.