Zacks Investment Research cut shares of Intuitive Surgical (NASDAQ:ISRG) from a hold rating to a sell rating in a research note issued to investors on Tuesday morning.
According to Zacks, “Contraction in Intuitive Surgical’s gross and operating margins in recent times is worrisome. Management expects margins to fluctuate due to newer product mixes and surging operating expenses. Additionally, the da Vinci system is in the early stages of adoption in some of the markets outside the United States. Intense competition in the global MedTech space adds to the woes. On the positive side, the company’s flagship da Vinci procedures recorded solid growth in recent times. The company looks to accelerate its business in China, following the clearance of da Vinci Xi. Management is also optimistic about the 510(k) submission for the TransOral Robotic Surgery and the Phase I launch of da Vinci SP. Strong exposure to robotics and medical mechatronics continues to drive the stock. Intuitive Surgical outperformed the industry in a year’s time.”
Other equities analysts have also recently issued reports about the stock. BidaskClub cut shares of Intuitive Surgical from a strong-buy rating to a buy rating in a research note on Wednesday, January 30th. Cantor Fitzgerald reissued a buy rating and issued a $620.00 price objective on shares of Intuitive Surgical in a research note on Friday, January 25th. Stifel Nicolaus dropped their price objective on shares of Intuitive Surgical from $600.00 to $570.00 and set a buy rating on the stock in a research note on Friday, January 25th. Citigroup dropped their price objective on shares of Intuitive Surgical from $601.00 to $560.00 and set a buy rating on the stock in a research note on Wednesday, January 2nd. Finally, ValuEngine raised shares of Intuitive Surgical from a sell rating to a hold rating in a research note on Wednesday, January 2nd. Two equities research analysts have rated the stock with a sell rating, four have issued a hold rating, fourteen have assigned a buy rating and one has given a strong buy rating to the stock. Intuitive Surgical has a consensus rating of Buy and a consensus price target of $566.40.
Intuitive Surgical (NASDAQ:ISRG) last announced its earnings results on Thursday, January 24th. The medical equipment provider reported $2.96 EPS for the quarter, missing analysts’ consensus estimates of $3.07 by ($0.11). The business had revenue of $1.05 billion during the quarter, compared to analyst estimates of $1.05 billion. Intuitive Surgical had a net margin of 30.29% and a return on equity of 18.11%. The business’s revenue was up 17.3% compared to the same quarter last year. During the same period in the previous year, the firm earned $2.54 earnings per share. Analysts predict that Intuitive Surgical will post 10.07 earnings per share for the current fiscal year.
In related news, VP Jamie Samath sold 458 shares of the business’s stock in a transaction dated Tuesday, January 29th. The shares were sold at an average price of $500.03, for a total value of $229,013.74. Following the sale, the vice president now directly owns 198 shares in the company, valued at approximately $99,005.94. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Gary S. Guthart sold 28,152 shares of the business’s stock in a transaction dated Monday, February 4th. The stock was sold at an average price of $520.47, for a total transaction of $14,652,271.44. Following the completion of the sale, the chief executive officer now owns 379,452 shares in the company, valued at $197,493,382.44. The disclosure for this sale can be found here. Insiders have sold a total of 42,284 shares of company stock worth $22,205,382 over the last 90 days. Insiders own 2.20% of the company’s stock.
Institutional investors have recently added to or reduced their stakes in the stock. HC Financial Advisors Inc. purchased a new position in Intuitive Surgical in the 3rd quarter valued at about $402,000. Acadian Asset Management LLC lifted its holdings in Intuitive Surgical by 52.9% in the 3rd quarter. Acadian Asset Management LLC now owns 1,911 shares of the medical equipment provider’s stock valued at $1,097,000 after purchasing an additional 661 shares in the last quarter. Cambridge Investment Research Advisors Inc. lifted its holdings in Intuitive Surgical by 19.3% in the 3rd quarter. Cambridge Investment Research Advisors Inc. now owns 5,295 shares of the medical equipment provider’s stock valued at $3,039,000 after purchasing an additional 857 shares in the last quarter. Pendal Group Ltd purchased a new position in Intuitive Surgical in the 3rd quarter valued at about $118,000. Finally, Janney Montgomery Scott LLC lifted its holdings in Intuitive Surgical by 24.0% in the 3rd quarter. Janney Montgomery Scott LLC now owns 7,220 shares of the medical equipment provider’s stock valued at $4,144,000 after purchasing an additional 1,399 shares in the last quarter. Institutional investors and hedge funds own 84.78% of the company’s stock.
Intuitive Surgical Company Profile
Intuitive Surgical, Inc designs, manufactures, and markets da Vinci surgical systems, and related instruments and accessories. Its da Vinci Surgical System transforms the surgeon's natural hand movements outside the body into corresponding micro-movements inside the patient's body. The company's da Vinci Surgical System include surgeon's consoles, patient-side carts, 3-D vision systems, da Vinci skills simulators, da Vinci Xi integrated table motions, and Firefly fluorescence imaging products that enable surgeons to perform various surgical procedures, including gynecologic, urologic, general, cardiothoracic, and head and neck surgical procedures.
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