What Happened?
Shares of diagnostic imaging company RadNet (NASDAQ: RDNT) jumped 5.2% in the afternoon session after Raymond James maintained its 'Strong Buy' rating on the stock and kept its price target at $95.00.
The analyst's decision signaled continued confidence in the company's prospects. This endorsement likely reassured investors, as the $95 price target suggested a notable potential upside from its trading price of $71.24 at the time of the report.
Is now the time to buy RadNet? Access our full analysis report here.
What Is The Market Telling Us
RadNet’s shares are somewhat volatile and have had 13 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock dropped 4% on the news that short-seller Hunterbrook Capital released a critical report questioning the medical imaging company's artificial intelligence (AI) business and growth metrics.
The report claimed that RadNet's AI division, a key driver of investor enthusiasm, accounted for less than 5% of the company's revenue. Hunterbrook's analysis also challenged RadNet's reported "same-center" revenue growth, suggesting that about half of this growth resulted from closing centers near surviving locations and shifting patients, rather than organic expansion. This method, according to the report, lowered the real growth to an estimated 2.5%-3%, well below the reported 6%-10%. Additionally, the short-seller raised concerns about the company's accounting practices, noting that its adjusted margins excluded costs like stock-based compensation and some research and development spending.
RadNet is up 8.4% since the beginning of the year, but at $76.02 per share, it is still trading 10% below its 52-week high of $84.48 from November 2025. Investors who bought $1,000 worth of RadNet’s shares 5 years ago would now be looking at an investment worth $4,239.
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