Intuitive Surgical (NASDAQ:ISRG) Stock Rating Raised to "Strong-Buy" at Barclays

Key Points

• Barclays upgraded Intuitive Surgical to “strong buy,” though broader analyst sentiment remains “moderate buy,” with an average price target of $502.53.
• Shares rose 2.4% to open at $414.52, while the company reported quarterly EPS of $2.80 and revenue of $2.89 billion, both ahead of analysts’ expectations.
• Intuitive Surgical continues to show strong growth, including an 18.4% year-over-year revenue increase, but insider selling and increasing competition in robotic surgery remain potential concerns.

Intuitive Surgical (NASDAQ:ISRG - Get Free Report) was upgraded by investment analysts at Barclays to a "strong-buy" rating in a research report issued to clients and investors on Wednesday, Zacks reports.

Other analysts also recently issued research reports about the stock. Stifel Nicolaus lowered their target price on shares of Intuitive Surgical from $670.00 to $550.00 and set a "buy" rating on the stock in a report on Friday, July 17th. UBS Group assumed coverage on shares of Intuitive Surgical in a report on Tuesday, July 28th. They set a "neutral" rating and a $500.00 price target for the company. Robert W. Baird reduced their price objective on shares of Intuitive Surgical from $525.00 to $500.00 and set an "outperform" rating for the company in a research report on Friday, July 17th. Wall Street Zen lowered Intuitive Surgical from a "buy" rating to a "hold" rating in a report on Sunday, September 20th. Finally, TD Cowen cut Intuitive Surgical from a "buy" rating to a "hold" rating in a research report on Tuesday, July 28th. One research analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $502.53.

Intuitive Surgical Trading Up 2.4%

Shares of ISRG stock opened at $414.52 on Wednesday. The company has a market capitalization of $146.44 billion, a P/E ratio of 47.48, a price-to-earnings-growth ratio of 3.05 and a beta of 1.46. The business's 50 day moving average is $383.70 and its two-hundred day moving average is $411.61. Intuitive Surgical has a twelve month low of $328.57 and a twelve month high of $603.88.

Intuitive Surgical (NASDAQ:ISRG - Get Free Report) last released its quarterly earnings results on Thursday, July 16th. The medical equipment provider reported $2.80 EPS for the quarter, topping the consensus estimate of $2.48 by $0.32. The business had revenue of $2.89 billion during the quarter, compared to analysts' expectations of $2.83 billion. Intuitive Surgical had a return on equity of 16.91% and a net margin of 28.45%.The company's quarterly revenue was up 18.4% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.81 earnings per share. As a group, equities analysts predict that Intuitive Surgical will post 8.87 earnings per share for the current fiscal year.

Insider Transactions at Intuitive Surgical

In related news, EVP Mark Brosius sold 77 shares of the firm's stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $375.57, for a total value of $28,918.89. Following the completion of the sale, the executive vice president owned 881 shares in the company, valued at $330,877.17. This trade represents a 8.04% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Fredrik Widman sold 1,089 shares of the business's stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $374.44, for a total transaction of $407,765.16. Following the sale, the vice president directly owned 1,026 shares in the company, valued at approximately $384,175.44. This represents a 51.49% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 12,370 shares of company stock valued at $4,891,989. 0.60% of the stock is owned by company insiders.

Institutional Investors Weigh In On Intuitive Surgical

Several institutional investors have recently modified their holdings of the company. Venture Visionary Partners LLC increased its stake in Intuitive Surgical by 1.3% in the 3rd quarter. Venture Visionary Partners LLC now owns 6,394 shares of the medical equipment provider's stock valued at $2,600,000 after purchasing an additional 81 shares in the last quarter. Elm3 Financial Group LLC purchased a new stake in Intuitive Surgical during the third quarter worth $431,000. Canandaigua National Trust Co of Florida purchased a new stake in Intuitive Surgical during the third quarter worth $498,000. Canandaigua National Bank & Trust Co. grew its holdings in Intuitive Surgical by 267.3% in the third quarter. Canandaigua National Bank & Trust Co. now owns 2,935 shares of the medical equipment provider's stock valued at $1,193,000 after purchasing an additional 2,136 shares during the last quarter. Finally, Decision Investments Inc. grew its holdings in Intuitive Surgical by 2.9% in the third quarter. Decision Investments Inc. now owns 1,890 shares of the medical equipment provider's stock valued at $769,000 after purchasing an additional 54 shares during the last quarter. Hedge funds and other institutional investors own 83.64% of the company's stock.

Trending Headlines about Intuitive Surgical

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

• Positive Sentiment: Analyst upgrades and buy ratings supported sentiment. Barclays began coverage with an Overweight rating, while Citi reiterated a Buy, potentially strengthening confidence in Intuitive Surgical’s long-term outlook. Barclays starts coverage of Intuitive Surgical stock at Overweight Intuitive Surgical Gets a Buy from Citi
• Positive Sentiment: Growth in the da Vinci SP platform remains a key catalyst. Rising procedure volumes, utilization and system placements, along with expanding medical indications and international adoption, could help the single-port platform develop into a significant revenue franchise. Can ISRG's Single-Port Platform Become the Next Billion-Dollar Franchise?
• Positive Sentiment: Relative strength attracted attention. ISRG advanced even as the broader market declined, indicating some investors may view the pullback as an opportunity, particularly given the company’s strong operating history and future product potential. Intuitive Surgical Gains As Market Dips
• Neutral Sentiment: Investors are focused on what could reignite growth. Commentary points to higher system sales, procedure growth, expanded indications and greater utilization as potential drivers for the stock after a period of underperformance relative to the S&P 500. What Could Lift ISRG Stock?
• Negative Sentiment: Competition remains a significant overhang. Jim Cramer questioned the business’s attractiveness because several companies are pursuing robotic surgery, particularly Johnson & Johnson, raising concerns about pricing, market share and the durability of Intuitive Surgical’s competitive advantage. Intuitive Surgical and JNJ Give Jim Cramer More Than Valuation to Consider

About Intuitive Surgical

Intuitive Surgical, Inc develops and commercializes robotic-assisted systems and related technologies designed to support minimally invasive medical procedures. The company's products are intended to help surgeons perform operations through small incisions while providing enhanced visualization, precision, and control.

Its principal product is the da Vinci Surgical System, a platform used across a range of specialties, including general surgery, urology, gynecology, thoracic surgery, and cardiac procedures.

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