AtriCure (NASDAQ:ATRC) Shares Gap Up Following Better-Than-Expected Earnings

Key Points

• AtriCure's stock price surged from $31.73 to $37.70 after reporting better-than-expected earnings, with an EPS of ($0.02) compared to the consensus estimate of ($0.15).
• The company's revenue for the quarter reached $136.14 million, exceeding analyst estimates of $130.17 million and marking a 17.1% increase compared to the previous year.
• AtriCure shares received mixed analyst ratings, with one downgrade to "hold" and multiple upgrades, resulting in a consensus rating of "Moderate Buy" and a target price of $50.78.

AtriCure, Inc. (NASDAQ:ATRC - Get Free Report) gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $31.73, but opened at $37.70. AtriCure shares last traded at $37.03, with a volume of 594,302 shares traded.

The medical device company reported ($0.02) earnings per share for the quarter, topping the consensus estimate of ($0.15) by $0.13. AtriCure had a negative net margin of 7.27% and a negative return on equity of 4.21%. The business had revenue of $136.14 million during the quarter, compared to the consensus estimate of $130.17 million. During the same quarter in the prior year, the company posted ($0.17) earnings per share. The company's quarterly revenue was up 17.1% compared to the same quarter last year.

Analysts Set New Price Targets

Several equities analysts have commented on ATRC shares. Needham & Company LLC increased their price target on AtriCure from $44.00 to $45.00 and gave the company a "buy" rating in a report on Wednesday. JMP Securities reissued a "market outperform" rating and set a $60.00 price objective on shares of AtriCure in a report on Wednesday, April 30th. Wall Street Zen cut AtriCure from a "buy" rating to a "hold" rating in a report on Sunday, June 1st. BTIG Research set a $54.00 target price on AtriCure in a research note on Wednesday. Finally, UBS Group lowered their price objective on AtriCure from $60.00 to $58.00 and set a "buy" rating for the company in a research report on Wednesday, April 30th. One analyst has rated the stock with a hold rating and nine have given a buy rating to the company. According to MarketBeat, AtriCure presently has an average rating of "Moderate Buy" and an average price target of $50.89.

Insider Transactions at AtriCure

In other news, insider Vinayak Doraiswamy sold 2,500 shares of the company's stock in a transaction that occurred on Wednesday, May 28th. The stock was sold at an average price of $33.44, for a total transaction of $83,600.00. Following the transaction, the insider directly owned 73,550 shares of the company's stock, valued at $2,459,512. This represents a 3.29% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Company insiders own 3.50% of the company's stock.

Institutional Investors Weigh In On AtriCure

Several institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. grew its holdings in AtriCure by 1.3% during the first quarter. Vanguard Group Inc. now owns 4,714,371 shares of the medical device company's stock worth $152,086,000 after buying an additional 61,166 shares in the last quarter. Hood River Capital Management LLC grew its position in AtriCure by 3.3% during the fourth quarter. Hood River Capital Management LLC now owns 2,923,731 shares of the medical device company's stock worth $89,349,000 after buying an additional 93,131 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in shares of AtriCure by 170.8% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 2,196,914 shares of the medical device company's stock valued at $70,872,000 after acquiring an additional 1,385,544 shares in the last quarter. First Light Asset Management LLC raised its holdings in shares of AtriCure by 5.6% in the 4th quarter. First Light Asset Management LLC now owns 1,969,221 shares of the medical device company's stock valued at $60,179,000 after acquiring an additional 103,685 shares in the last quarter. Finally, Neuberger Berman Group LLC raised its holdings in shares of AtriCure by 26.3% in the 1st quarter. Neuberger Berman Group LLC now owns 1,186,065 shares of the medical device company's stock valued at $38,365,000 after acquiring an additional 246,877 shares in the last quarter. Institutional investors own 99.11% of the company's stock.

AtriCure Trading Down 3.5%

The company has a market capitalization of $1.68 billion, a PE ratio of -43.97 and a beta of 1.56. The company has a current ratio of 4.11, a quick ratio of 2.88 and a debt-to-equity ratio of 0.16. The stock has a fifty day moving average of $32.33 and a two-hundred day moving average of $34.32.

AtriCure Company Profile

AtriCure, Inc develops, manufactures, and sells devices for surgical ablation of cardiac tissue, exclusion of the left atrial appendage, and temporarily blocking pain by ablating peripheral nerves to medical centers in the United States, Europe, the Asia-Pacific, and internationally. The company offers Isolator Synergy Clamps, single-use disposable radio frequency products; multifunctional pens and linear ablation devices, such as the MAX Pen device that enables surgeons to evaluate cardiac arrhythmias, perform temporary cardiac pacing, sensing, and stimulation, and ablate cardiac tissue with the same device; and the Coolrail device, which enables users to make longer linear lines of ablation.