Zacks Investment Research Downgrades Intuitive Surgical Inc. (ISRG) to Hold
Intuitive Surgical Inc. (NASDAQ:ISRG) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Tuesday.
According to Zacks, “Intuitive Surgical reported impressive second quarter 2016 results. We believe incremental spending on product development and higher investment on expanding the company’s footprint in international markets (particularly in Europe) are prudent moves that will drive long-term growth. Further, growing adoption of the da Vinci system among physicians for general surgery and thoracic procedures is a key growth catalyst. Moreover, the integrated Table Motion product has gained significant traction within a short span of time, which will boost top-line growth. However, management’s guidance for the second half of the year disappointed us. Gross margin is also forecasted to decline in the back half. Moreover, higher spending on product development can weigh on margin in the near term.”
Other equities research analysts have also issued reports about the company. Barclays PLC reaffirmed a “buy” rating on shares of Intuitive Surgical in a research note on Saturday, June 18th. Goldman Sachs Group Inc. lowered Intuitive Surgical from a “buy” rating to a “neutral” rating and raised their price objective for the company from $633.00 to $674.00 in a research note on Thursday, June 2nd. They noted that the move was a valuation call. Piper Jaffray Cos. reaffirmed a “neutral” rating and issued a $700.00 price objective (up from $610.00) on shares of Intuitive Surgical in a research note on Wednesday, July 20th. Canaccord Genuity reiterated a “buy” rating and issued a $700.00 price target on shares of Intuitive Surgical in a report on Tuesday, June 7th. Finally, Northland Securities downgraded Intuitive Surgical from a “market perform” rating to an “under perform” rating and set a $600.00 price target on the stock. in a report on Thursday, July 21st. One investment analyst has rated the stock with a sell rating, six have issued a hold rating and thirteen have assigned a buy rating to the company’s stock. The stock has a consensus rating of “Buy” and a consensus price target of $701.42.
Shares of Intuitive Surgical (NASDAQ:ISRG) opened at 703.06 on Tuesday. The firm has a 50-day moving average price of $688.84 and a 200 day moving average price of $648.41. The company has a market capitalization of $27.06 billion, a P/E ratio of 39.90 and a beta of 0.73. Intuitive Surgical has a 12-month low of $447.00 and a 12-month high of $720.01.
Intuitive Surgical (NASDAQ:ISRG) last posted its quarterly earnings data on Tuesday, July 19th. The company reported $5.62 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.97 by $0.65. The business earned $670 million during the quarter, compared to analyst estimates of $640.69 million. Intuitive Surgical had a return on equity of 15.25% and a net margin of 26.80%. During the same period last year, the company earned $4.57 EPS. On average, equities research analysts predict that Intuitive Surgical will post $21.30 earnings per share for the current year.
In other news, CEO Gary S. Guthart sold 13,400 shares of the firm’s stock in a transaction on Monday, August 1st. The stock was sold at an average price of $698.00, for a total value of $9,353,200.00. Following the completion of the sale, the chief executive officer now owns 78,780 shares of the company’s stock, valued at approximately $54,988,440. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Marshall Mohr sold 5,000 shares of the firm’s stock in a transaction on Wednesday, July 27th. The stock was sold at an average price of $684.09, for a total value of $3,420,450.00. Following the completion of the sale, the chief financial officer now directly owns 6,725 shares of the company’s stock, valued at approximately $4,600,505.25. The disclosure for this sale can be found here. 3.10% of the stock is owned by insiders.
Several hedge funds have recently bought and sold shares of the company. Global X Management Co. LLC acquired a new stake in Intuitive Surgical during the second quarter worth $118,000. Acrospire Investment Management LLC acquired a new stake in Intuitive Surgical during the first quarter worth $120,000. Bartlett & Co. LLC boosted its stake in Intuitive Surgical by 7.3% in the second quarter. Bartlett & Co. LLC now owns 220 shares of the company’s stock worth $146,000 after buying an additional 15 shares during the last quarter. IFP Advisors Inc boosted its stake in Intuitive Surgical by 3.3% in the first quarter. IFP Advisors Inc now owns 284 shares of the company’s stock worth $171,000 after buying an additional 9 shares during the last quarter. Finally, Glenmede Trust Co. NA boosted its stake in Intuitive Surgical by 3.0% in the second quarter. Glenmede Trust Co. NA now owns 275 shares of the company’s stock worth $181,000 after buying an additional 8 shares during the last quarter. 91.90% of the stock is owned by hedge funds and other institutional investors.
Intuitive Surgical Company Profile
Intuitive Surgical, Inc (Intuitive) designs, manufactures and markets da Vinci Surgical Systems, and related instruments and accessories. The Company’s da Vinci Surgical System consists of a surgeon’s console, a patient-side cart and a vision system. The da Vinci Surgical System translates a surgeon’s hand movements, which are performed on instrument controls at a console, into corresponding micro-movements of instruments positioned inside the patient through small incisions or ports.
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