Nano-X Imaging Ltd.

Nano-X Imaging Ltd. (NASDAQ: NNOX) is involved in the production of medical imaging systems. The company provides the Nanox System, which is a blend of both hardware and software components. The company is in the process of creating a prototype for the Nanox.ARC, a medical imaging system featuring their innovative digital X-ray source. Additionally, Nano-X is developing Nanox. CLOUD, a complementary cloud-based software designed to facilitate the delivery of medical screening services.

Recent Financial and Business Updates:

• Second Quarter Income Statement Review:
  • During the three-month period ending on June 30, 2023, the company posted net loss of USD17.4 million, in contrast to net loss of USD19.6 million during the same three months ending on June 30, 2022, indicating a reduction of USD2.2 million.
  • In the comparable period, the company incurred an expense leading to a goodwill impairment of USD14.3 million, which was mostly offset by a decrease in other income of USD12.8 million, primarily due to a decrease in the company's earn-out liabilities.
  • For the three months ending on June 30, 2023, the company reported revenue of USD2.6 million, compared to USD2.2 million in the comparable period. During this period, the company continued to generate revenue primarily through the sale of teleradiology services and AI solutions.
• Balance Sheet Review:
  • Total current assets amounted to USD77.52 million as of June 30, 2023.
  • Total assets as of June 30, 2023, amounted to USD224.88 million.
  • Total liabilities and shareholders’ equity stood at USD224.88 million as of June 30, 2023.
• Agreement update:
  • NNOX has entered a manufacturing and supply deal with Varex Imaging Corporation (Nasdaq: VREX), a prominent manufacturer of X-ray imaging components.
  • Varex will provide X-ray tubes that incorporate Nanox's digital X-ray source for the Nanox.ARC system.
  • This agreement comes following Varex's assessment of Nanox's innovative digital X-ray source over recent months.

Technical Observation (on the daily chart)

The Relative Strength Index (RSI) over a 14-day period stands at 47.06, rising from oversold level. At the same time, the stock’s volume traded rose to 3.53 million on October 03, 2023. The current price is between both the 21-period SMA and 50-period SMA, with both acting as support and resistance levels respectively in the short to medium term. The current price is between an important range of USD 6.00 to USD 7.50, with a breakout on either side will decide the future medium to long term trend for the stock price.

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a “WATCH” rating is recommended for Nano-X Imaging Ltd. (NASDAQ: NNOX) at the price of USD 7.26 as on October 05, 2023, at 6:58 am PDT. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

How to Read the Charts?

The yellow colour line reflects the 21-period simple moving average (SMA) while the blue line indicates the 50- period simple moving average (SMA). SMA helps to identify existing price trends. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The orange colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

The red and green colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps with easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices. 

The reference date for all price data, currency, technical indicators, support, and resistance levels is October 05, 2023. The reference data in this report has been partly sourced from REFINITIV. 

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

RSI: Relative Strength Index

USD: United States dollar