Bank of America Has Lowered Expectations for Intuitive Surgical (NASDAQ:ISRG) Stock Price

Key Points

• Bank of America cut its price target on Intuitive Surgical from $650 to $520, though it kept a Buy rating on the stock. The new target still implies about 18.97% upside from the previous close.
• Other analysts also lowered their targets recently, including Leerink Partners, Piper Sandler, JPMorgan, TD Cowen, and HSBC. Overall, Intuitive Surgical has a Moderate Buy consensus with an average target price of $579.33.
• The company beat expectations in its latest quarter, reporting $2.50 EPS on $2.77 billion in revenue, with revenue up 23% year over year. Despite that, shares traded at $437.07, below both the 50-day and 200-day moving averages.

Intuitive Surgical (NASDAQ:ISRG - Get Free Report) had its price target reduced by equities researchers at Bank of America from $650.00 to $520.00 in a report issued on Monday,Benzinga reports. The brokerage presently has a "buy" rating on the medical equipment provider's stock. Bank of America's target price indicates a potential upside of 18.97% from the company's previous close.

A number of other research analysts also recently commented on ISRG. Leerink Partners dropped their price objective on shares of Intuitive Surgical from $622.00 to $573.00 and set an "outperform" rating for the company in a research note on Wednesday, April 22nd. Piper Sandler dropped their price objective on shares of Intuitive Surgical from $620.00 to $580.00 and set an "overweight" rating for the company in a research note on Wednesday, April 22nd. JPMorgan Chase & Co. dropped their price objective on Intuitive Surgical from $625.00 to $550.00 and set an "overweight" rating for the company in a report on Wednesday, April 22nd. TD Cowen dropped their price objective on Intuitive Surgical from $660.00 to $585.00 and set a "buy" rating for the company in a report on Wednesday, April 22nd. Finally, HSBC dropped their price objective on Intuitive Surgical from $653.00 to $604.00 and set a "buy" rating for the company in a report on Wednesday, April 22nd. Nineteen research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Intuitive Surgical currently has a consensus rating of "Moderate Buy" and an average target price of $579.33.

Intuitive Surgical Price Performance

ISRG traded up $15.95 during trading on Monday, hitting $437.07. The company's stock had a trading volume of 994,654 shares, compared to its average volume of 2,028,287. The firm's 50 day moving average price is $463.63 and its 200-day moving average price is $513.77. The stock has a market cap of $154.79 billion, a PE ratio of 53.00, a PEG ratio of 3.36 and a beta of 1.51. Intuitive Surgical has a twelve month low of $417.74 and a twelve month high of $603.88.

Intuitive Surgical (NASDAQ:ISRG - Get Free Report) last issued its quarterly earnings results on Tuesday, April 21st. The medical equipment provider reported $2.50 earnings per share for the quarter, beating the consensus estimate of $2.08 by $0.42. The company had revenue of $2.77 billion during the quarter, compared to the consensus estimate of $2.62 billion. Intuitive Surgical had a return on equity of 15.98% and a net margin of 28.15%.Intuitive Surgical's revenue was up 23.0% on a year-over-year basis. During the same period in the previous year, the firm posted $1.81 EPS. Equities analysts anticipate that Intuitive Surgical will post 8.57 earnings per share for the current year.

Insider Transactions at Intuitive Surgical

In related news, Director Amy L. Ladd sold 119 shares of the stock in a transaction on Wednesday, April 29th. The stock was sold at an average price of $463.50, for a total value of $55,156.50. Following the completion of the sale, the director directly owned 120 shares in the company, valued at approximately $55,620. This represents a 49.79% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Gary Loeb sold 400 shares of the stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $446.95, for a total transaction of $178,780.00. Following the completion of the sale, the executive vice president directly owned 6,120 shares of the company's stock, valued at $2,735,334. This trade represents a 6.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 5,647 shares of company stock worth $2,760,359 in the last quarter. 0.60% of the stock is owned by corporate insiders.

Institutional Trading of Intuitive Surgical

Several large investors have recently bought and sold shares of the company. Norges Bank bought a new stake in shares of Intuitive Surgical in the fourth quarter worth $2,856,987,000. J. Stern & Co. LLP increased its stake in shares of Intuitive Surgical by 18,504.6% in the fourth quarter. J. Stern & Co. LLP now owns 2,127,248 shares of the medical equipment provider's stock worth $1,204,788,000 after buying an additional 2,115,814 shares during the last quarter. Northwestern Mutual Wealth Management Co. increased its stake in shares of Intuitive Surgical by 1,043.3% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 1,342,121 shares of the medical equipment provider's stock worth $760,124,000 after buying an additional 1,224,734 shares during the last quarter. Arrowstreet Capital Limited Partnership increased its stake in shares of Intuitive Surgical by 95.3% in the first quarter. Arrowstreet Capital Limited Partnership now owns 2,105,544 shares of the medical equipment provider's stock worth $970,635,000 after buying an additional 1,027,475 shares during the last quarter. Finally, Rakuten Investment Management Inc. bought a new stake in shares of Intuitive Surgical in the third quarter worth $388,436,000. Institutional investors and hedge funds own 83.64% of the company's stock.

About Intuitive Surgical

Intuitive Surgical, founded in 1995 and headquartered in Sunnyvale, California, is a medical technology company focused on the design, manufacture and service of robotic-assisted surgical systems. The company is best known for its da Vinci surgical systems, which enable minimally invasive procedures by translating a surgeon's hand movements into finer, scaled motions of small instruments inside the patient. Intuitive's business centers on supplying hospitals and surgical centers with systems, instruments and related technologies that aim to improve precision, visualization and control in the operating room.

In addition to its core surgical platforms, Intuitive markets a portfolio of reusable and disposable instruments, accessories, and proprietary software, and provides training, servicing and clinical support to its customers.

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