Sientra, Inc. (NASDAQ:SIEN) stock price gained 16% during Friday trading, thanks to a strong growth in volume and higher price targets. Volumes are important for the stock, as stock price usually moves up with the growth in volumes. Sientra’s total volume increased to 770933 in Friday trading, compared to the three-month average volume of 142.98K.
Sientra has been receiving strong comments from major analysts and fund managers. The company’s stock was recently upgraded by Stifel Nicolaus to “buy” from a “hold” rating. Moreover, Wall Street is giving a strong buy recommendation for SIEN stock. Wall Street has set the price target at $16.25 for Sientra stock, representing a strong upside compared to the current price of $11 a share.
The company’s financial numbers are also offering support to its share price. In the latest quarter, the company generated total sales of $9.8 million, compared to $6.5 million in the past year period.
Sales for its Breast Products segment are increasing at a higher than expected rate. In the latest quarter, its Breast Products segment generated sales growth of 17% to $7.7 million, compared to the sales of $6.5 million in the previous year quarter. The strong growth in its Breast Products segment was driven by the acquisition of the Specialty Surgical Products tissue expander portfolio.
On the negative side, its sales for the miraDry segment declined to $2.2 million in the latest quarter, relative to sales of $3.0 million in the same period last year.
In order to improve the performance of miraDry segment, Sientra has been actively making strategies to optimize, re-position, and integrate the segment. For instance, the company is working on enhancing the miraDry treatment protocol.
Sientra also appears in a strong cash position to invest in organic and inorganic growth opportunities. At the end of the recent quarter, its cash and cash equivalents were standing close to $37 million, which is sufficient cash to meet its capital requirements considering the size of the company. On the whole, Sientra has the potential to extend the current rally, depending largely on its upcoming financial numbers and advancement in its product pipeline.
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