ReShape Lifesciences Inc. (NASDAQ: RSLS) is a medical devices company that focuses on treating obesity and metabolic disease. The company has received FDA approval for some of its medical devices to help deal with these issues. One of its most well-known devices is Lap-Band®, which is FDA-approved. They also have another investigational device called the ReShape Vest™ System that wraps around the outside of the stomach.
Recent Stock Performance
ReShape Lifesciences Inc. (RSLS) stock soared by 53.15% at the close of trading on December 13, 2023, reaching $0.38 per share. However, the stock has performed dismally year-to-date, losing 97.55% of its value. The recent stock rally came after the company received FDA approval for its next-gen Lap-Band device.
FDA Approval for Next-Generation Lap-Band® 2.0 FLEX
On December 12, 2023, Reshape Lifesciences announced that its Next-Generation Lap-Band® 2.0 FLEX medical device had been given FDA approval. According to the announcement, the new device is an upgrade to the existing Lap-Band design.
It features FLEX Technology, a relief valve that allows large chunks of food to pass through the narrowed passage. The band can now momentarily relax before returning to its normal diameter. That minimizes discomfort, which occurs when large food pieces pass through. ReShape Lifesciences said they were preparing to launch the device in the US.
Commenting on the FDA approval, Paul F. Hickey, the company’s President and CEO, said it would be a “key growth catalyst” for their Lap-Band franchise.
ReShape Lifesciences Stock Forecast
During the last trading session, RSLS stock traded higher than its 50-day moving average of $0.2547. However, it was significantly below its 200-day moving average of $1.5485. The stock is valued at a significant discount on its 52-week high of $22.40.
Stock trading volume was significantly higher on December 13, 2023, at 203,821,236, against an average volume of 7,258,722.
Based on this recent performance, one stock analyst has given the stock a moderate buy rating. Their projection for the stock is $1, a 160.15% upside based on its closing price of $038.
Should You Buy RSLS Stock?
In its most recent quarterly earnings report on November 8, 2023. ReShape Lifesciences reported an EPS of -$0.92, beating estimates by 23.52%. However, its reported revenue of $2.16 million fell short of expectations by 10.21%. The reported revenue also represented a year-over-year decline of 22.98%.
In the past four quarters, ReShape Lifesciences has beaten EPS estimates 100% of the time. However, it is worth noting that the company has never posted a profit. While the recent approval for its next-generation Lap-Band device provided the stock with a boost, it is most likely a temporary boost; its stock is down 1.6129% in pre-market trading.
Another essential bit of information is that the company received a non-compliance notice From Nasdaq on October 10, 2023. As such, the stock risks being delisted from Nasdaq in the next 180 days unless it can meet the minimum bid price of $1 in the next 180 calendar days.
When deciding whether or not to hold RSLS stock, it is essential to consider all the above information.
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