STAAR Surgical (NASDAQ:STAA) Shares Gap Up – Here’s Why

STAAR Surgical Company (NASDAQ:STAA) gapped up prior to trading on Friday. The stock had previously closed at $19.08, but opened at $19.91. STAAR Surgical shares last traded at $20.4180, with a volume of 120,833 shares changing hands.

STAAR Surgical News Roundup

Here are the key news stories impacting STAAR Surgical this week:

• Positive Sentiment: STAAR Surgical’s board authorized a $50 million share-buyback program. Repurchases can support earnings per share by reducing the number of shares outstanding and may signal that management considers the stock undervalued after its substantial decline from the 52-week high. The announcement prompted a favorable market reaction. STAAR Surgical Board Approves $50 Million Share Repurchase Authorization
• Neutral Sentiment: Recent valuation commentary described STAAR Surgical as potentially undervalued following a 4.1% decline on September 23, when shares closed at $19.80. However, the company’s reported price-to-earnings ratio is elevated, so investors may continue to focus on future earnings growth and execution rather than valuation alone. Is STAAR Surgical Co (STAA) a Bargain After 4.1% Drop?
• Neutral Sentiment: A market-data update listed short interest at zero shares as of September 24, with a zero-day days-to-cover ratio. Because the figures conflict with the description of a large increase in short interest, investors should treat this data point cautiously until confirmed by a reliable short-interest report.
• Negative Sentiment: Levi & Korsinsky announced an investigation into possible breaches of fiduciary duties by certain STAAR Surgical officers and directors. The announcement does not establish wrongdoing, but it introduces legal, governance and potential reputational risks that could weigh on the stock. Levi & Korsinsky Shareholder Investigation Announcement

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on STAA. Stifel Nicolaus dropped their price objective on shares of STAAR Surgical from $31.00 to $28.00 and set a “hold” rating for the company in a research note on Monday, August 17th. Zacks Research lowered STAAR Surgical from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, September 2nd. Wedbush lowered their target price on STAAR Surgical from $40.00 to $37.00 and set an “outperform” rating on the stock in a report on Thursday, August 13th. Jefferies Financial Group lowered their target price on STAAR Surgical from $28.00 to $23.00 and set a “buy” rating on the stock in a report on Tuesday. Finally, William Blair set a $33.00 price target on STAAR Surgical in a research report on Thursday, August 13th. Three research analysts have rated the stock with a Buy rating, seven have given a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, STAAR Surgical has an average rating of “Hold” and an average target price of $27.90.

STAAR Surgical Trading Up 6.0%

The company has a market capitalization of $1.01 billion, a price-to-earnings ratio of 289.47 and a beta of 1.21. The company’s 50 day simple moving average is $23.35 and its 200-day simple moving average is $25.09.

STAAR Surgical (NASDAQ:STAA) last posted its quarterly earnings data on Wednesday, August 12th. The medical instruments supplier reported $0.39 earnings per share for the quarter, beating analysts’ consensus estimates of $0.22 by $0.17. The business had revenue of $93.53 million during the quarter, compared to analyst estimates of $90.60 million. STAAR Surgical had a net margin of 1.13% and a return on equity of 9.05%. The company’s revenue was up 111.1% on a year-over-year basis. During the same quarter in the previous year, the business posted ($0.34) earnings per share. Sell-side analysts anticipate that STAAR Surgical Company will post 0.39 EPS for the current year.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Caitong International Asset Management Co. Ltd increased its stake in STAAR Surgical by 58.2% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,669 shares of the medical instruments supplier’s stock worth $39,000 after purchasing an additional 614 shares in the last quarter. Corient Private Wealth LP lifted its stake in STAAR Surgical by 1.6% during the second quarter. Corient Private Wealth LP now owns 48,968 shares of the medical instruments supplier’s stock valued at $1,405,000 after buying an additional 771 shares in the last quarter. Ascentis Independent Advisors acquired a new stake in shares of STAAR Surgical during the first quarter valued at approximately $77,000. Gamco Investors INC. ET AL raised its holdings in shares of STAAR Surgical by 33.3% during the first quarter. Gamco Investors INC. ET AL now owns 20,000 shares of the medical instruments supplier’s stock valued at $374,000 after acquiring an additional 5,000 shares during the period. Finally, Cannon Global Investment Management LLC lifted its position in shares of STAAR Surgical by 32.1% in the 1st quarter. Cannon Global Investment Management LLC now owns 21,800 shares of the medical instruments supplier’s stock valued at $408,000 after acquiring an additional 5,300 shares in the last quarter. 96.70% of the stock is currently owned by institutional investors and hedge funds.

STAAR Surgical Company Profile

STAAR Surgical Company, together with its subsidiaries, designs, develops, manufactures, markets, and sells implantable lenses for the eye, and companion delivery systems to deliver the lenses into the eye. The company provides implantable Collamer lens product family (ICLs) to treat visual disorders, such as myopia, hyperopia, astigmatism, and presbyopia. It markets its products to health care providers, including ophthalmic surgeons, vision and surgical centers, hospitals, government facilities, and distributors, as well as products are primarily used by ophthalmologists.