Value
6.5/10data confidence 33%| Component | Sub-score |
|---|---|
| P/S | 4.9 |
| Analyst target | 7.5 |
CBLL · Why this verdict
Why CeriBell (CBLL) is rated SELL
Updated
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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VerdictSELL
Overall score5.8/10
ConfidenceMEDIUM
MacroNEUTRAL
Thesis pillars
| Pillar | Expectation | Trend |
|---|---|---|
The company is cash-burning at -31% of revenue and fails the engine's Rule of 40 test (score of -2), keeping the quality score at 3.2, just below the 4.0 floor. Quality breakdown | Rule of 40 score should turn positive and free cash flow burn should narrow toward breakeven over the next 12 months. | →Stable |
| CounterNewly commercial medical device companies often run negative free cash flow while scaling salesforce and manufacturing, so a single period's burn rate doesn't necessarily indicate a structural quality problem. | ||
The stock is in a technical breakout -- above all major moving averages with a golden cross -- pushing the momentum score to 6.8, well above the engine's 5.5 threshold. Momentum breakdown | The stock should hold above its 200-day moving average and momentum score should stay above 5.5 over the next 2 quarters if the breakout is durable. | →Stable |
| CounterFalling on-balance volume during the breakout suggests the advance isn't backed by strong buying conviction, raising the odds of a failed breakout. | ||
Insiders sold $2,772,296 (0.374% of market cap) across 19 transactions in the past 90 days with zero buys, a heavy selling severity that failed the engine's insider gate. Insider | Insider selling should slow materially, dropping below 10 transactions per quarter, if this was a one-time liquidity event rather than a signal of eroding confidence. | →Stable |
| CounterBroad-based selling across many small transactions more likely reflects pre-scheduled selling plans (Rule 10b5-1) among a large employee base after a lockup expiration than a coordinated bearish signal. | ||
The company has beaten earnings estimates in all of its last 4 reported quarters, with an average surprise of 7.9%, a perfect beat streak the engine flags as a positive catalyst. Catalyst breakdown | The beat streak should extend through the next 2 reported quarters with average surprise staying positive. | →Stable |
| CounterA perfect beat streak against consistently conservative estimates for a small, newly-public device maker may just reflect management consistently under-promising and over-delivering rather than genuine outperformance. | ||
The company is cash-burning at -31% of revenue and fails the engine's Rule of 40 test (score of -2), keeping the quality score at 3.2, just below the 4.0 floor.
→StableQuality breakdown
- Expectation
- Rule of 40 score should turn positive and free cash flow burn should narrow toward breakeven over the next 12 months.
CounterNewly commercial medical device companies often run negative free cash flow while scaling salesforce and manufacturing, so a single period's burn rate doesn't necessarily indicate a structural quality problem.
The stock is in a technical breakout -- above all major moving averages with a golden cross -- pushing the momentum score to 6.8, well above the engine's 5.5 threshold.
→StableMomentum breakdown
- Expectation
- The stock should hold above its 200-day moving average and momentum score should stay above 5.5 over the next 2 quarters if the breakout is durable.
CounterFalling on-balance volume during the breakout suggests the advance isn't backed by strong buying conviction, raising the odds of a failed breakout.
Insiders sold $2,772,296 (0.374% of market cap) across 19 transactions in the past 90 days with zero buys, a heavy selling severity that failed the engine's insider gate.
→StableInsider
- Expectation
- Insider selling should slow materially, dropping below 10 transactions per quarter, if this was a one-time liquidity event rather than a signal of eroding confidence.
CounterBroad-based selling across many small transactions more likely reflects pre-scheduled selling plans (Rule 10b5-1) among a large employee base after a lockup expiration than a coordinated bearish signal.
The company has beaten earnings estimates in all of its last 4 reported quarters, with an average surprise of 7.9%, a perfect beat streak the engine flags as a positive catalyst.
→StableCatalyst breakdown
- Expectation
- The beat streak should extend through the next 2 reported quarters with average surprise staying positive.
CounterA perfect beat streak against consistently conservative estimates for a small, newly-public device maker may just reflect management consistently under-promising and over-delivering rather than genuine outperformance.
TrendMatrix Research · core thesis
Engine thesis — one sentence
CeriBell shows a strong technical breakout, robust growth, and a perfect earnings beat streak, but cash burn keeps quality below the engine's floor and heavy insider selling has tripped the insider gate, arguing for caution despite the momentum.
Falsifiable statement — pillar-level invalidators below. Engine-derived; not personalized advice.
Per-dimension breakdown
Quality
3.2/10data confidence 100%| Component | Sub-score |
|---|---|
| ROE | 0.0 |
| ROA | 0.0 |
| Gross margin | 10.0 |
| Op margin | 0.0 |
| Net margin | 0.0 |
| Current ratio | 5.0 |
| FCF quality | 0.0 |
| Moat | 7.2 |
| Rule of 40 | 3.0 |
| Piotroski F | 6.7 |
- ▸Cash-burning: FCF -31% of revenue
- ▸Rule of 40: -2 (fail)
Growth
9.8/10data confidence 33%| Component | Sub-score |
|---|---|
| Rev growth | 9.8 |
- ▸Strong growth: 29% YoY
Momentum
5.6/10data confidence 100%| Component | Sub-score |
|---|---|
| RSI | 5.0 |
| MACD | 8.4 |
| OBV | 5.4 |
| MA position | 9.0 |
| Volume | 0.0 |
- ▸Above 200-day MA
Sentiment
6.3/10data confidence 100%| Component | Sub-score |
|---|---|
| Analyst rating | 5.0 |
| Price target | 9.1 |
| erm sentiment | 5.0 |
- ▸Analyst upside: 39%
Insider
5.0/10data confidence 75%| Component | Sub-score |
|---|---|
| materiality | 3.0 |
| insider conviction | 2.0 |
| holder change | 10.0 |
- ▸Notable insider selling — $2,054,696 (0.274% of mkt cap)
- ▸Institutions accumulating
Peer rank
4.6/10data confidence 80%| Component | Sub-score |
|---|---|
| value rank | 2.0 |
| quality rank | 0.8 |
| growth rank | 8.4 |
- ▸Industry growth leader
Technical
4.6/10data confidence 100%| Component | Sub-score |
|---|---|
| bollinger | 3.9 |
| support resistance | 4.0 |
| 52w position | 5.8 |
Risk (lower is worse)
3.8/10data confidence 100%| Component | Sub-score |
|---|---|
| short interest | 5.9 |
| days to cover | 3.2 |
| volatility | 1.5 |
| implied vol | 0.0 |
| max pain risk | 3.0 |
| debt equity | 9.4 |
- ▸High IV: 90%
- ▸Above max pain $2
- ▸Concentration risks: 3 HIGH (10-K Item 1A — sized via position_sizing, validated via buy_confidence)
Catalyst
6.6/10data confidence 100%| Component | Sub-score |
|---|---|
| erm | 5.0 |
| earnings history | 10.0 |
| earnings timing | 5.0 |
| surprise avg | 6.4 |
- ▸Perfect beat streak: 4Q
How the verdict was assembled
Engine trigger
Quality below minimum threshold.
Engine technical detail
verdict_path:
L1:HARD_BLOCKPassed (7)
- MOMENTUM:5.6>=5.5
- ASYMMETRY:1.9>=1.5
- 8K:CLEAN
- NEWS_EVENTS:NONE_RECENT
- EARNINGS_PROXIMITY:28d clear
- SEMI_CYCLE_PEAK:CLEAR
- MATERIALS_CYCLE_PEAK:CLEAR
Failed (0)
none
Warning (1)
- INSIDER:0.27%=MODERATE
Reward-to-Risk
1.86
Upside
+21.3%
Downside
11.4%
Sizing output
AVOID
SetupBreakout — Golden cross, above all MAs, RSI 62, MACD bullish
EdgeCatalyst-Driven — Earnings in 28d with 4/4 beat streak
SuitabilityAggressive — MCap $0.8B<$5B
Investment implication
The L1 gate blocked the positive-verdict path: a hard-floor threshold was breached, so dimensional pillars — including Growth at 9.8 could not lift the engine output above the verdict floor.
The strongest dimensions are Growth at 9.8, Catalyst at 6.6, and Value at 6.5; the weakest are Quality at 3.2, Risk (lower is worse) at 3.8, and Technical at 4.6. The V9 engine cleared all gates with 1 warning, producing an asymmetric reward-to-risk of 1.86 and an engine sizing output of AVOID.
What would invalidate the thesis
Falsifying conditions — when triggered, the corresponding pillar's thesis is invalidated.
- P1Cash Burn Below Quality Floor
Trip ifRule of 40 score rises above 20.
- P2Breakout Momentum With Growth
Trip ifMomentum score falls below 5.5 while price closes below the 200-day moving average.
- P3Heavy Insider Selling Signal
Trip ifNet insider selling exceeds $5,000,000 over the next 90 days.
- P4Perfect Earnings Beat Streak
Trip ifAverage earnings surprise falls below 0% in 2 of its next 4 reported quarters.