Accuray Inc Soars 28% Following Strong Earnings

Accuray Inc. (ARAY) is trading sharply higher this morning by $1.87, or 27.41%, to $8.67 a share, the highest intraday price since October 2008. The maker of robotic cancer treatment products reported a second-quarter net income of  $4.1 million, or $0.07 a share, compared to a net loss of $1.2 million, or $0.02 per share, during the same period last year. Analysts, on average, expected a loss of 1 cent, according to a Bloomberg survey.

Shares of Accuray Inc continue to make higher-highs as they brake above the ticker’s March 10, 2010, 52-week high of $7.75. Volume has exploded with more than 1.7 million ARAY shares already trading hands compared to a daily average volume of just 294,000 shares.

The day’s range so far for shares of Accuray Inc., which closed at $6.86 in the previous trading session and opened today at $7.54, has been between $7.40 and a 52-week high of $8.93 per share.

The average pps target of analysts who cover ARAY is $8.00 p/sh. The company has a market cap of $507 million, a trailing P/E of 320.37, a forward multiple of 61.79 and a price-to-earnings ratio of 23.48. Needless to say, the security comes with considerable risk, as an argument could be made that the shares are overvalued on a valuation basis.

At last check, ARAY shares were up $1.97, or 28.72%, to $8.83.

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About Ron Haruni 1121 Articles
Ron Haruni is the Co-Founder & Editor in Chief of Wall Street Pit.

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