ViewRay, Inc. (NASDAQ: VRAY) is soaring early on in the market this morning, and for good reason. The company announced a management update that excited investors, sending the stock on a run for the top. Today, we’ll talk about:
- The management update;
- what we’re seeing from VRAY as a result; and
- what we’ll be watching for ahead.
VRAY Announces Management Update
As mentioned above, ViewRay is having an incredibly strong start to the trading session this morning after news broke with regard to a management update. In a press release issued early this morning, the company announced that it has appointed Scott Drake as President and CEO, Shar Matin as COO and D. Keith Grossman as member of the Board. The management changes are effective immediately.
The company also announced preliminary unaudited revenue for the second quarter, ending June 30, 2018. In the release, VRAY said that it generated approximately $16 million in revenue during the quarter. Finally, the company reaffirmed guidance of between $80 million and $90 million in revenue for the full year. In a statement, Daniel Moore, Chairman of the Board of Directors at VRAY had the following to offer:
We are delighted to welcome Scott as our new President and Chief Executive Officer and Shar as our new Chief Operating Officer… We believe that Scott and Shar’s deep operational experience with fast-growing medical companies will be invaluable as we bring ViewRay’s revolutionary technology to the fight against cancer for patients around the world.
We are also delighted to welcome Keith Grossman as a new member of our Board… With more than 30 years of leadership in the medical technology industry, we look forward to Mr. Grossman’s counsel and perspective.
The above statement was followed up by Mr. Drake with the following:
I am excited to join the ViewRay team as we drive growth and innovation to benefit customers and cancer patients globally. ViewRay’s MRIdian technology, team and early clinical outcomes position us well to create shareholder value.
What We’re Seeing From The Stock
When we start to get our hands dirty in the market, one of the first lessons that we learn is that the news moves the market. In the case of ViewRay, the news proved to be overwhelmingly positive. Not only has the company named a new president and CEO, it has named a new COO and member of the board. This combined with strong preliminary revenue results and reaffirmed guidance is clearly a source of excitement for investors. So, it’s no surprise to see that the stock is headed up in the market this morning. At the moment (10:10), VRAY is trading at $12.31 per share after a gain of $2.76 per share or 28.90% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on VRAY. In particular, we’re interested in following the changes made to the company under the newly minted management team. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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