STAAR Surgical Company (NASDAQ:STAA) Stock Has Consensus Target Price of $29.00

Key Points

• Analyst sentiment is mixed: 13 brokerages give STAAR Surgical a consensus “Hold” rating, with an average 1-year price target of $29.
• The company beat quarterly expectations, reporting EPS of $0.11 versus $0.05 expected and revenue of $83.41 million versus $78.73 million expected; revenue nevertheless fell 11.9% year over year.
• STAAR Surgical’s board authorized a $50 million share buyback, allowing the company to repurchase up to 5.2% of its shares.

Shares of STAAR Surgical Company (NASDAQ:STAA - Get Free Report) have been assigned a consensus rating of "Hold" from the thirteen brokerages that are covering the stock, Marketbeat reports. Three equities research analysts have rated the stock with a sell recommendation, five have assigned a hold recommendation, four have issued a buy recommendation and one has given a strong buy recommendation to the company. The average 1-year price objective among brokers that have updated their coverage on the stock in the last year is $29.00.

Several analysts have commented on the company. Zacks Research raised STAAR Surgical from a "hold" rating to a "strong-buy" rating in a report on Monday, October 19th. Wedbush cut their price objective on STAAR Surgical from $40.00 to $37.00 and set an "outperform" rating for the company in a research report on Thursday, August 13th. Stifel Nicolaus raised STAAR Surgical from a "hold" rating to a "buy" rating and upped their target price for the stock from $28.00 to $31.00 in a research note on Tuesday, September 29th. UBS Group set a $34.00 target price on STAAR Surgical in a research report on Thursday, November 5th. Finally, Jefferies Financial Group dropped their price target on shares of STAAR Surgical from $28.00 to $23.00 and set a "buy" rating on the stock in a research note on Tuesday, September 22nd.

STAAR Surgical Stock Performance

Shares of NASDAQ STAA opened at $26.69 on Thursday. The company's fifty day moving average price is $22.84 and its 200 day moving average price is $23.74. STAAR Surgical has a 1 year low of $15.59 and a 1 year high of $35.87. The company has a market capitalization of $1.34 billion, a PE ratio of -2,669,000.00 and a beta of 1.22.

STAAR Surgical (NASDAQ:STAA - Get Free Report) last posted its earnings results on Wednesday, November 4th. The medical instruments supplier reported $0.11 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.05 by $0.06. STAAR Surgical had a net margin of 0.16% and a return on equity of 8.43%. The business had revenue of $83.41 million for the quarter, compared to analyst estimates of $78.73 million. During the same period in the prior year, the company posted $0.08 EPS. The company's revenue for the quarter was down 11.9% on a year-over-year basis. On average, equities analysts expect that STAAR Surgical will post 0.39 EPS for the current year.

STAAR Surgical declared that its board has initiated a stock buyback plan on Thursday, September 24th that authorizes the company to buy back $50 million in shares. This buyback authorization authorizes the medical instruments supplier to buy up to 5.2% of its shares through open market purchases. Share buyback plans are typically an indication that the company's management believes its stock is undervalued.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. American Capital Management Inc. purchased a new stake in STAAR Surgical during the 2nd quarter worth approximately $24,291,000. Two Seas Capital LP lifted its position in shares of STAAR Surgical by 22.6% in the third quarter. Two Seas Capital LP now owns 1,304,957 shares of the medical instruments supplier's stock valued at $29,505,000 after acquiring an additional 240,568 shares in the last quarter. Dimensional Fund Advisors LP lifted its position in shares of STAAR Surgical by 39.1% in the first quarter. Dimensional Fund Advisors LP now owns 820,782 shares of the medical instruments supplier's stock valued at $15,348,000 after acquiring an additional 230,582 shares in the last quarter. Bank of New York Mellon Corp purchased a new position in shares of STAAR Surgical in the second quarter valued at approximately $6,578,000. Finally, Roubaix Capital LLC purchased a new position in shares of STAAR Surgical in the third quarter valued at approximately $3,421,000. 96.70% of the stock is owned by hedge funds and other institutional investors.

STAAR Surgical Company Profile

STAAR Surgical is a medical device company focused on ophthalmic surgery and vision correction. The company develops, manufactures and markets implantable lenses and related products designed to reduce or eliminate dependence on glasses or contact lenses. Its principal product line is the EVO Visian Implantable Collamer Lens (ICL), a lens implanted inside the eye to correct myopia, with or without astigmatism. Unlike procedures that remove corneal tissue, ICL surgery preserves the eye's natural lens and is designed to be removable.

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