Should I Buy DRIO? DRIO 2026 Analysis

Should You Buy DarioHealth Corp (DRIO) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

9.950

1 Day change

0.51%

52 Week Range

17.740

Analysis Updated At

2026/02/04

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Not a good buy right now for an impatient buyer: trend is bearish and fundamentals are still deteriorating (sharp YoY revenue decline and ongoing losses).
Price is sitting below key pivot/resistance levels and near support, but there is no proprietary timing signal to justify jumping in immediately.
Options market is extremely high-IV but illiquid (no volume), which weakens the usefulness of options sentiment as a confirmation tool.

Intellectia Proprietary Trading Signals

AI Stock Picker: no signal on given stock today.
SwingMax: No signal on given stock recently.

Technical Analysis

Trend/momentum: Bearish structure with moving averages stacked negatively (SMA_200 > SMA_20 > SMA_5), implying the broader trend is still down.
MACD: Histogram at -0.0844 (below zero) and negatively contracting—downtrend pressure persists, though selling momentum may be easing slightly.
RSI(6): 47.3 (neutral), not signaling an oversold bounce setup.
Levels: Current ~9.9 is below Pivot 11.117 and below S1 10.172, hovering just above S2 9.587. This is a weak technical position (under former support) unless it reclaims ~10.17 and then ~11.12.
Pattern-based short-horizon bias: Similar-pattern stats imply modest downside bias near-term (next day -0.59%, next week -2.62%) with only flat-ish odds over a month (+0.27%).

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Positioning: Call open interest 224 vs put open interest 0 → open-interest put/call ratio = 0 (call-skew), but this is not very informative given tiny absolute OI.
Liquidity/sentiment: Today’s option volume is 0 for both calls and puts → no active options sentiment signal.
Volatility: Implied vol (30d) ~492.7% vs historical vol ~99.9% (very elevated). Market is pricing extreme moves, but without volume the signal quality is low.
Takeaway: Options data does not provide a reliable bullish confirmation; the market is pricing big uncertainty rather than a clear directional bet.

Technical Summary

Sell

Buy

Positive Catalysts

- Operational discipline: Management has been lowering expenses (per Stifel commentary), which can extend runway and improve operating leverage if revenue stabilizes.
- Customer/pipeline: Mention of meaningful new customer relationships and a “strong pipeline” (TD Cowen) could set up a 2026 recovery if conversions materialize.
- Gross margin improvement: 2025/Q3 gross margin rose to 60.22% (+15.30% YoY), a constructive sign for eventual scaling if revenue growth returns.
- Analyst targets were reset higher post reverse-split, and at least one firm remains Buy-rated (Stifel).

Neutral/Negative Catalysts

- Weak growth: 2025/Q3 revenue fell to 5.007M (-32.55% YoY), indicating ongoing demand/revenue pressure.
- Profitability still deteriorating: Net income -9.28M (worse YoY) and EPS -2.96 (worse YoY) show the path to profitability is not yet visible.
- Technical overhang: Bearish MA stack and price below key pivot/support levels suggest rallies may face resistance.
- Flows: Hedge funds are selling, with selling amount up ~109.67% over the last quarter (negative institutional signal).
- No near-term catalyst from news flow: No news in the last week reduces the chance of an immediate sentiment-driven upside breakout.
- Options uncertainty: Extremely high IV but no volume → uncertainty is high and conviction is low.

Financial Performance

Latest quarter: 2025/Q3.
Revenue: 5.007M, down -32.55% YoY (clear contraction).
Earnings: Net income -9.28M (down -36.49% YoY) and EPS -2.96 (down -59.06% YoY), indicating losses are not improving.
Margins: Gross margin 60.22%, up +15.30% YoY (a bright spot), but margin gains are currently outweighed by falling revenue and continued losses.
Overall: Financial trend is still negative on growth and profitability, making the stock hard to justify as a “buy now” without a clear turnaround signal.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Recent changes (2025-11-14):
- Stifel (David Grossman): Buy, price target raised to $16 (from $1.25; noted reverse split normalization). View: encouraged by expense reduction and customer wins, but expects momentum only with accelerating revenue growth and a path to profitability.
- TD Cowen: Hold, price target raised to $11 (from $0.60; reverse split normalization). View: revenue weakness continuing; pipeline could support recovery in 2026.
Wall Street pros: Cost control progress, improving gross margin, pipeline/customer additions that could drive a 2026 re-acceleration.
Wall Street cons: Ongoing revenue weakness and no clear near-term profitability path; recovery framed as later (2026) rather than immediate.
Influential/political trading check: No recent congress trading data available; insiders are neutral with no significant recent trend.

2 Analyst Rating

Wall Street analysts forecast DRIO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DRIO is 13.5 USD with a low forecast of 11 USD and a high forecast of 16 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

1 Buy

1 Hold

0 Sell

Moderate Buy

Current: 9.900

Low

Averages

13.5

High

Current: 9.900

Low

Averages

13.5

High

Stifel

David Grossman

Buy

maintain

$16

AI Analysis

2025-11-14

Reason

Stifel

David Grossman

Price Target

$16

AI Analysis

2025-11-14

maintain

Buy

Reason

Stifel analyst David Grossman adjusted the firm's price target on DarioHealth to $16 from $1.25 and keeps a Buy rating on the shares. While "encouraged" by management's ability to lower expenses and continue to sign meaningful new customer relationships, the firm views the stock as unlikely to regain momentum until there are visible signs of accelerating revenue growth and a path to profitability. Following the 20-1 reverse stock split, the firm notes that its prior price target of $1.25 would have equated to $25.

TD Cowen

Hold

maintain

$11

2025-11-14

Reason

TD Cowen

Price Target

$11

2025-11-14

maintain

Hold

Reason

TD Cowen raised the firm's price target on DarioHealth to $11 from 60c and keeps a Hold rating on the shares. The company updated its model following Q3 results which showed its revenue weakness continuing but noting its strong pipeline could lead to a recovery in 2026.

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DRIO Should I Buy

DRIO Should I Buy

Should You Buy DarioHealth Corp (DRIO) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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