Bioventus Inc

Bioventus Inc. (NASDAQ: BVS) is a medical device company. The Company is focused on developing and commercializing clinically differentiated and minimally invasive treatments that engage and enhance the body's natural healing process. Its portfolio of products is grouped into three verticals: Pain Treatments, Surgical Solutions, and Restorative Therapies.

Recent Financial and Business Updates:

• Second Quarter Financial Overview:
  • Net sales amounted to USD 137.1 million, reflecting a decline of USD 3.3 million or 2.3% year-over-year as reported (2.3% constant currency). Excluding revenues from divested assets, underlying organic sales experienced a decrease of USD 0.5 million, equivalent to a 0.3% year-over-year decrease.
  • Net Loss from continuing operations stood at USD 4.7 million, in contrast to the Net Loss from continuing operations of USD 7.7 million recorded in the previous-year period.
  • Adjusted EBITDA reached USD 28.2 million, marking a notable increase of 26.1% compared to the USD 22.3 million reported in the prior-year period.
  • Loss per share of Class A common stock from continuing operations was USD 0.06, an improvement from the loss of USD 0.11 observed in the corresponding period of the previous year.
  • Non-GAAP earnings per share of Class A common stock from continuing operations reached USD 0.14, exhibiting growth from the USD 0.10 recorded in the same period of the previous year.
• In recent months, the Company has taken a series of strategic actions aimed at enhancing operational stability and strengthening its financial position. Noteworthy steps include:
  • Successfully completing the sale of the Wound Business, generating net proceeds of USD 31.0 million, which were allocated to debt repayment.
  • Retiring USD 60.3 million of the term loan and revolver.
  • As a result of these initiatives, the total net leverage ratio, calculated according to the Amended 2019 Credit Agreement, has been reduced to 4.33, a significant improvement compared to the figure of 5.50 recorded as of December 31, 2022.

 Technical Observation (on the daily chart)

The price of BVS stock has shown a consistent upward trend since making its 52-week low on March 31, 2023, with a correction of approximately 418.31%. The RSI (14 period) momentum indicator is in a downtrend with currently at a value of 52.69, with expectations of some consolidation. Moreover, the price is currently positioned above both the 21-day SMA and 50-day SMA trend-following indicators, which may act as dynamic short-term support levels.

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As per the above-mentioned price action, key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Watch’ rating has been given Bioventus Inc. (NASDAQ: BVS) at the current market price of USD 4.00 as of August 18, 2023, at 07:50 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 in 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 August 18, 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 

Note: Trading decisions require a thorough analysis by individual. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating the stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.