Are Short-Sellers Right About ReWalk Robotics Ltd. (RWLK)?

Bears have made their way to ReWalk Robotics Ltd. (NASDAQ:RWLK) as short interest on RWLK stock has climbed by 2,248,582 shares during the most recent reporting period. The most recent short interest data has been released for the January 31st settlement date, which shows a increase in total short interest for RWLK, to 3,085,575, a surge of 268.65% since January 15th. Average daily volume for ReWalk Robotics Ltd. at the January 31st settlement jumped to 12,320,421, as compared to 6,708,924 at the January 15th report. That brought days to cover to 1, a 0% decrease from the 1 days to cover recorded at the prior short interest data release.

The stock is currently hovering around the first support level of $0.31. Below this, the next support is placed in the zone of $0.28. Till the time, the RWLK stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 66.43 on daily chart, which may remain a cause for concern. If the price breaks below $0.28 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $0.37 mark may result into a pull-back move towards $0.4 level.

On 13th of February, ReWalk Robotics Ltd. (NASDAQ:RWLK) shares ended higher after a volatile session. The shares accumulated 0.07 points or 23.08 percent at $0.34 with a heavy trade volume of 37.982 million shares. After opening the session at $0.357, the shares went as high as $0.375 and as low as $0.3118, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $16.01 million and now has 47.65 million shares outstanding. ReWalk Robotics Ltd. (RWLK) stock has gained 51.35 percent of market value in 21 trading days.

RWLK stock has a trailing 3-year beta of 1.89, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$0.76 a share in the trailing twelve months. The stock’s value has surged 92.99 percent year to date (YTD) against a decline of -68 percent in 12 month’s time. The company’s shares still trade -75.11 percent away from its 1-year high of $1.35 and 109.35 percent up from 52-week low of $0.16. The average consensus rating on the company is 1, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of ReWalk Robotics Ltd. (RWLK) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry RWLK operates in has an average P/E of 32.9. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 2.46 on the Price-to-Sales ratio. Compare this with the industry average P/S of 6.24. 43.4 percent is the gross profit margin for ReWalk Robotics Ltd. and operating margin sits at 0 percent. Along with this, the net profit margin is 0 percent.

Let’s take a look at some insider activity at ReWalk Robotics Ltd. (NASDAQ:RWLK) and see the pattern. The earliest insider trade took place on 11/28/2018. Jasinski Lawrence J parted with a total of 0.39 thousand shares of company at average share price of $0.24. The total for the sales was set at $0.09 thousand. After this transaction, the CEO account balance stood at 182.24 thousand shares. The stock grew 12.5 percent since that insider sale. On 08/24/2018, Jasinski Lawrence J, CEO, sold 0.38 thousand shares at a price per share of $1.03. This removed 0.39 thousand shares from the insider’s fortune and the stock saw a -73.79 percent retreat in value since the news became public. This transaction left 183.24 thousand shares in the CEO account.

On 06/27/2018, CEO Jasinski Lawrence J performed a sale transaction worth $1.57 thousand. This sale at $0.99 each has eliminated 1.58 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -72.73 percent decrease since the transaction was reported. The insider now is left with 183.63 thousand shares remaining in the account. Jasinski Lawrence J, who performs the CEO job, sold 0.42 thousand shares for $0.44 thousand. The disposal occurred on 05/24/2018 was priced at $1.05 per share. The share price plunged -74.29 percent since the reporting date. Jasinski Lawrence J now left with a stake of 185.82 thousand RWLK stock worth $63.18 thousand after the insider selling.