STAAR Surgical (NASDAQ:STAA) Shares Gap Down Following Weak Earnings

STAAR Surgical Company (NASDAQ:STAA) gapped down before the market opened on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $18.92, but opened at $17.67. STAAR Surgical shares last traded at $19.41, with a volume of 507,661 shares changing hands.

The medical instruments supplier reported ($0.37) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.14 by ($0.51). STAAR Surgical had a negative return on equity of 16.06% and a negative net margin of 41.79%.The firm had revenue of $57.80 million during the quarter, compared to analyst estimates of $75.54 million. The company’s revenue for the quarter was up 18.0% on a year-over-year basis.

STAAR Surgical News Roundup

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

• Positive Sentiment: China and product demand: Management highlighted strong sales growth in China and continued adoption of the EVO ICL family, supporting revenue growth (+18% YoY in Q4). Staar Surgical Co (STAA) Q4 2025 Earnings Call Highlights
• Positive Sentiment: Margin recovery and cash position: Gross profit expanded and cost of sales declined, which helped margins; cash and equivalents rose to ~$153M, reducing short‑term liquidity risk. These operational improvements give scope for recovery if sales normalize. STAAR Surgical Stock Falls on Q4 2025 Earnings (Quiver)
• Positive Sentiment: Insider and institutional appetite: Recent insider/institutional purchases and at least one recent Buy rating from Jefferies indicate some investors see longer‑term upside. That support can limit downside if execution improves. STAAR Surgical Stock Falls on Q4 2025 Earnings (Quiver)
• Neutral Sentiment: Management communication: The company issued a shareholder letter and co‑CEOs addressed investors after the miss; leadership transition/context may help transparency but leaves near‑term execution questions unanswered. STAAR Surgical Issues Shareholder Letter (BusinessWire)
• Negative Sentiment: Earnings and revenue miss: Q4 revenue came in at $57.8M (vs. consensus ~ $75M) and EPS was a -$0.37 miss of analyst expectations, prompting the share drop and signaling larger near‑term demand headwinds than modeled. STAAR Surgical Q4 Earnings Summary (MarketBeat)
• Negative Sentiment: Analyst reaction: Stifel cut its price target to $18 and set a Hold, and other firms flagged short‑term revenue headwinds — analyst downgrades/target cuts add selling pressure and lower near‑term upside. Stifel Lowers PT to $18 (Benzinga)
• Negative Sentiment: Investor concern over execution: Coverage and commentary emphasize the company’s operating loss and widened net loss despite revenue growth, keeping focus on when profitability and top‑line momentum will sustainably return. Co‑CEOs Address Shareholders After Poor Earnings (MassDevice)

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on STAA. Weiss Ratings reissued a “sell (d)” rating on shares of STAAR Surgical in a research note on Thursday, January 22nd. Wedbush started coverage on shares of STAAR Surgical in a report on Tuesday, February 3rd. They issued a “neutral” rating and a $26.00 price objective for the company. Wells Fargo & Company boosted their target price on STAAR Surgical from $28.00 to $30.75 and gave the stock an “equal weight” rating in a report on Wednesday, December 10th. Stifel Nicolaus cut their price target on STAAR Surgical from $19.00 to $18.00 and set a “hold” rating for the company in a report on Wednesday. Finally, Morgan Stanley initiated coverage on STAAR Surgical in a research note on Friday, January 16th. They set an “underweight” rating and a $13.00 price objective on the stock. One investment analyst has rated the stock with a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Reduce” and a consensus target price of $20.78.

Insider Transactions at STAAR Surgical

In other STAAR Surgical news, major shareholder Broadwood Partners, L.P. purchased 27,485 shares of the firm’s stock in a transaction dated Friday, January 9th. The shares were acquired at an average price of $22.05 per share, with a total value of $606,044.25. Following the purchase, the insider directly owned 15,453,629 shares in the company, valued at approximately $340,752,519.45. This trade represents a 0.18% increase in their position. The purchase was disclosed in a document filed with the SEC, which is available at the SEC website. Insiders acquired a total of 434,138 shares of company stock worth $9,424,176 over the last ninety days. 0.59% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. CWM LLC increased its position in shares of STAAR Surgical by 74.1% during the second quarter. CWM LLC now owns 1,563 shares of the medical instruments supplier’s stock valued at $26,000 after acquiring an additional 665 shares during the last quarter. Caitong International Asset Management Co. Ltd lifted its holdings in shares of STAAR Surgical by 2,605.1% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 1,055 shares of the medical instruments supplier’s stock worth $28,000 after acquiring an additional 1,016 shares during the last quarter. GAMMA Investing LLC boosted its position in shares of STAAR Surgical by 61.4% during the 3rd quarter. GAMMA Investing LLC now owns 1,856 shares of the medical instruments supplier’s stock worth $50,000 after purchasing an additional 706 shares during the period. PNC Financial Services Group Inc. increased its holdings in STAAR Surgical by 691.0% in the 2nd quarter. PNC Financial Services Group Inc. now owns 3,607 shares of the medical instruments supplier’s stock valued at $61,000 after purchasing an additional 3,151 shares during the last quarter. Finally, Tower Research Capital LLC TRC raised its position in STAAR Surgical by 375.0% in the second quarter. Tower Research Capital LLC TRC now owns 5,919 shares of the medical instruments supplier’s stock valued at $99,000 after purchasing an additional 4,673 shares during the period. Institutional investors and hedge funds own 96.70% of the company’s stock.

STAAR Surgical Stock Down 0.5%

The business has a 50-day simple moving average of $19.97 and a 200-day simple moving average of $24.19. The company has a market cap of $936.60 million, a PE ratio of -9.66 and a beta of 1.05.

About STAAR Surgical

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.