STAAR Surgical (NASDAQ:STAA) to Buyback $50.00 million in Outstanding Shares

Key Points

• STAAR Surgical approved a $50 million share buyback, allowing the company to repurchase up to 5.2% of its outstanding shares through open-market purchases. The authorization may signal management believes the stock is undervalued, though it does not guarantee the full amount will be spent.
• Shares rose 7.5% to $20.51 following the announcement, but the stock remained below its 50-day and 200-day moving averages. STAAR Surgical has a market capitalization of about $1.03 billion and trades at a very high P/E ratio of 293.
• Analyst sentiment remains cautious, with a consensus rating of “Hold” and an average price target of $27.90. The company recently reported quarterly EPS of $0.39 versus expectations of $0.22, while revenue increased 111.1% year over year to $93.53 million.

STAAR Surgical (NASDAQ:STAA - Get Free Report) announced that its Board of Directors has approved a share buyback plan on Thursday, September 24th, RTT News reports. The company plans to buyback $50.00 million in outstanding shares. This buyback authorization permits the medical instruments supplier to buy up to 5.2% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's management believes its stock is undervalued.

Wall Street Analyst Weigh In

STAA has been the subject of several research analyst reports. Wall Street Zen lowered STAAR Surgical from a "buy" rating to a "hold" rating in a research report on Saturday, August 1st. UBS Group set a $28.00 target price on STAAR Surgical in a research note on Monday, August 17th. Weiss Ratings upgraded STAAR Surgical from a "sell (d-)" rating to a "sell (d+)" rating in a report on Thursday, August 13th. Zacks Research lowered STAAR Surgical from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, September 2nd. Finally, Jefferies Financial Group cut their price target on STAAR Surgical from $28.00 to $23.00 and set a "buy" rating on the stock in a report on Tuesday. Three investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, STAAR Surgical presently has a consensus rating of "Hold" and an average price target of $27.90.

STAAR Surgical Trading Up 7.5%

STAAR Surgical stock traded up $1.43 during midday trading on Friday, reaching $20.51. The stock had a trading volume of 1,309,276 shares, compared to its average volume of 1,066,511. The company has a fifty day moving average price of $23.23 and a two-hundred day moving average price of $25.06. STAAR Surgical has a 12 month low of $15.59 and a 12 month high of $35.87. The company has a market capitalization of $1.03 billion, a P/E ratio of 293.04 and a beta of 1.21.

STAAR Surgical (NASDAQ:STAA - Get Free Report) last announced its quarterly earnings data on Wednesday, August 12th. The medical instruments supplier reported $0.39 EPS for the quarter, beating analysts' consensus estimates of $0.22 by $0.17. STAAR Surgical had a return on equity of 9.05% and a net margin of 1.13%.The firm had revenue of $93.53 million during the quarter, compared to analysts' expectations of $90.60 million. During the same quarter last year, the firm posted ($0.34) earnings per share. The company's revenue for the quarter was up 111.1% compared to the same quarter last year. On average, equities research analysts predict that STAAR Surgical will post 0.39 earnings per share for the current fiscal year.

Key Headlines Impacting STAAR Surgical

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

• Positive Sentiment: The board approved a $50 million buyback authorization. Repurchases can support earnings per share, reduce the share count and signal that management views the stock as undervalued following its recent decline. The authorization does not guarantee that the full amount will be spent. STAAR Surgical Board Approves $50 Million Share Repurchase Authorization
• Positive Sentiment: Reports tied the buyback announcement to a sharp increase in STAAR Surgical’s shares, suggesting investors viewed the capital-return plan as a meaningful near-term support for the stock. STAAR Surgical Shares Rise on $50M Buyback Plans

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.

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