Marpai, Inc. (NASDAQ: MRAI) is a deep learning technology company which uses its SMART Health Plan Services System to address problems of the healthcare system using a consumer-driven approach. Recently, the company has caught investors’ attention for a variety of reasons. As this stock receives attention from big names on FinTwit ahead of launching its new healthcare app, many are looking for a swing trade through January. With that in mind, the company’s innovative strategy could make MRAI one of the best stocks under $5.
MRAI Stock News
What sets MRAI apart from other healthcare companies, is its SMART Health Plan Services System which utilizes deep learning and comprehensive data to produce models and algorithms that reduce healthcare costs for self-insured companies and their employees. The company has access to data regarding claims, electronic health records, X-rays, lab results, notes, social determinants, and provider ratings which are utilized by the Marpai SMART system to create valuable insights for each member. In this way, the company can proactively reduce health risks for its members.
Currently, the company provides services nationwide to over 65 self-insured companies and 50,000 members. On October 26th, the company lPO’ed with 7,187,500 common stock shares at an initial price of $4 per share with the aim of raising $25 million in gross proceeds. While some analysts felt this valuation was unearned, the company’s acquisition of Continental Benefits earlier this year brought a national healthcare payer and third-party administrator under MRAI’s wing. In fact, this acquisition led to a major increase in MRAI’s value given that the company is licensed in 50 states, has tens of thousands of members as well as established provider network agreements with Cigna and Aetna.
But overall, the company saw notable growth in 2021 reporting a net revenue of around $4.8 million compared to only $3.5 million in the first 2 quarters of the year – a sequential increase of almost 36%. Additionally, MRAI saw a 23% increase in the number of customers under the company’s administered health plans as well. But in terms of operation, MRAI saw a rise in its expenses as a result of its Continental Benefit acquisition earlier in the year.
As a result, the company’s net losses increased to $4.8 million compared to only $0.9 the year before. However MRAI has maintained its growth by utilizing the $24.8 million from its recent IPO to penetrate other markets such as four school districts in Texas consisting of 39 schools. Edmundo Gonzalez, MRAI’s CEO, highlighted the company’s pivotal role saying “technology can make it easier for educators and their families to avoid costly health events, access top quality care and maintain annual exams”. As MRAI demonstrates the effectiveness of its technology, the company could attract other clients from different school districts in the future.
But to first bring its technology to Texas educators, MRAI partnered with Synolo – a leading provider of benefit plans for the education market – as well as the U.S. Employee Benefits Services Group (USEBSG). Rick Niles, Texas Managing Director at USEBSG is confident MRAI’s technology will allow Texas school districts to “get ahead of health issues, avoid big medical bills and stay healthy through access to the best healthcare available”. If MRAI meets or exceeds the USEBSG’s expectations, then more doors could open for the company going forward.
Aside from that, investors are bullish on MRAI for its heavy inside ownership. In December, the company’s CEO bought 17,500 common stock shares of MRAI at an average PPS of $4.2 for a total investment of $73,500. Only a few days later, the company reported other share purchases from MRAI’s management including 25,000 shares purchased by the company’s co-founder, 5,000 shares bought by its CFO, and 5,730 shares purchased by a member of the board. The total $1.1 million worth of MRAI common stock was purchased for between $4.17 to $4.42 per share. This means that insiders own 31% of the total shares because 6 million of the 20 million OS is owned by management.
This heavy insider ownership is definitely a bullish sign for investors but many are speculating whether there is something bigger brewing beneath the surface. This may be the myMarpai SMART app which connects users to providers helping them manage their family care. The app is scheduled to be released in January and if it proves useful it could push MRAI forward – possibly making it one of the best stocks under $5 for now.
Media Sentiment
The Master FURU @MrZackMorris is seeing a good entry point for MRAI given the company’s potential.
Looks like anticipation is building for MRAI’s new app as investors like @stockballa add in its current price range.
Technical Analysis
Currently, MRAI is trading at $4.46 with a resistance at 4.90 and shows a primary support at 4.16. The RSI is holding at 48 and the MACD has just become bullish. However, accumulation has been down trending.
Trading well below its high at $6.26, now could be a good entry point for MRAI ahead of its January catalysts. As MRAI draws more attention thanks to its (AI)-driven health technology, experienced management team, heavy insider ownership, and pipeline of services, MRAI could be one of the stocks under $5 that would make for a good swing opportunity at its current price.
MRAI Stock Forecast
Since its listing on NASDAQ, MRAI has shown its potential. In 2020, the company oversaw more than 534 thousand claims, $620 million in filed claims, but saved $418 million. Given its network with Aetena, Cigna, and Continental Beliefs – MRAI is positioned to excel in its sphere as it targets the 157 million Americans who receive employer sponsored health insurance. With $16.2 million in revenue, the company is using technology to reduce costs and increase its margin. Currently, MRAI aims to reduce its costs to one third of the industry’s – if achieved MRAI will not be one of the healthcare stocks under $5 for long.
Investors are bullish on this stock given its solid financial performance and heavy insider ownership, but its cutting-edge technology will likely set the company apart in the long-term as it works to predict chronic conditions, high cost surgeries , and provide personalized health recommendations. Given its low float of only 5.47 million, investors are giving this stock a price target of $7 to $13 in the short term and almost double that in the long term. With this in mind, MRAI could warrant a long-term hold given its competitive edge.
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