In the current Wall Street climate of ultra-bullish investing, some companies seem to be attracting a lot of attention despite dubious performance, while others are firing on all cylinders and failing to gain favor from investors; neither of these cases apply to ViewRay, Inc. (NASDAQ:VRAY).
Based in Ohio, ViewRay is a medical technology firm that specializes in developing advanced magnetic resonance imaging solutions. Trading on the Nasdaq as VRAY, shares of the company show the following performance as of late October:
* 4.03 percent gain over five days
* 21.01 percent monthly gain
* 47.36 percent gain over three months
* 122.68 percent year-to-date gain
* 156.25 percent overall gain
It is clear to see that VRAY has been kind to investors, and this performance, which is vastly superior to the overall healthcare sector, has been very well justified by the company’s financial and operational moves over the last few years.
Successful $50 Million VRAY Stock Sale
On October 24, ViewRay announced the successful completion of a $50 million sale of stock through a direct offering made to new and existing investors. Some of the parties in the securities purchase agreement include Kearny Venture Partners, venBIO, and Ghost Tree Capital; these are all venture capital firms dedicated to investing in up-and-coming healthcare technology companies.
A few days after the closing of the aforementioned stock purchase transaction, Bank of New York Mellon Corp. piled on more VRAY stock to boost its position from 109,348 to 174,324 shares. BNY Mellon is hardly the only high-profile VRAY investor; other names include Goldman Sachs and Charles Schwab. It stands to reason that these major shareholders may also increase their VRAY positions before the end of the year.
ViewRay CEO Chris Raanes has stated that the proceeds from this financing round will be applied towards marketing, production, and sales of the company’s top product, the MRIdian Linac radiotherapy system. Prospective investors should note that ViewRay is fairly advanced in terms of research and development, which means that the company is more likely to turn investments into solid opportunities for revenue creation and profit.