Establishment Labs (NASDAQ:ESTA) Lowered to "Sell" Rating by Wall Street Zen

Key Points

• Establishment Labs was downgraded from a "hold" to a "sell" rating by Wall Street Zen, indicating a shift in investor outlook for the company.
• Despite the downgrade, other analysts maintain a more positive stance, with ratings including one "buy" and a target price of $70.00 from Mizuho.
• In the latest earnings report, Establishment Labs reported a revenue increase of 16.1% year-over-year, although it missed EPS estimates.

Establishment Labs (NASDAQ:ESTA - Get Free Report) was downgraded by Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued to investors on Saturday.

Several other research analysts have also recently commented on ESTA. Needham & Company LLC restated a "buy" rating and issued a $48.00 target price on shares of Establishment Labs in a research report on Friday, June 13th. Citigroup upped their target price on shares of Establishment Labs from $38.00 to $47.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 9th. Mizuho upped their target price on shares of Establishment Labs from $58.00 to $70.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 16th. Finally, BTIG Research started coverage on shares of Establishment Labs in a research report on Friday, May 16th. They issued a "buy" rating and a $62.00 target price for the company. One research analyst has rated the stock with a sell rating, one has given a hold rating and four have given a buy rating to the company. Based on data from MarketBeat.com, Establishment Labs has an average rating of "Moderate Buy" and an average price target of $55.80.

Establishment Labs Price Performance

Shares of NASDAQ:ESTA opened at $38.32 on Friday. The company has a quick ratio of 1.67, a current ratio of 2.84 and a debt-to-equity ratio of 9.71. Establishment Labs has a fifty-two week low of $26.56 and a fifty-two week high of $50.85. The firm has a 50-day simple moving average of $40.78 and a 200 day simple moving average of $37.06. The company has a market cap of $1.11 billion, a PE ratio of -12.56 and a beta of 0.83.

Establishment Labs (NASDAQ:ESTA - Get Free Report) last posted its earnings results on Thursday, August 7th. The company reported ($0.57) EPS for the quarter, missing the consensus estimate of ($0.54) by ($0.03). Establishment Labs had a negative return on equity of 224.34% and a negative net margin of 49.89%. The firm had revenue of $51.30 million during the quarter, compared to the consensus estimate of $50.80 million. During the same quarter last year, the company posted ($0.62) EPS. Establishment Labs's revenue for the quarter was up 16.1% on a year-over-year basis. On average, sell-side analysts anticipate that Establishment Labs will post -2.41 EPS for the current year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Geode Capital Management LLC boosted its holdings in shares of Establishment Labs by 1.2% in the second quarter. Geode Capital Management LLC now owns 25,917 shares of the company's stock valued at $1,105,000 after acquiring an additional 299 shares in the last quarter. Patriot Financial Group Insurance Agency LLC boosted its holdings in shares of Establishment Labs by 5.2% in the second quarter. Patriot Financial Group Insurance Agency LLC now owns 6,025 shares of the company's stock valued at $257,000 after acquiring an additional 300 shares in the last quarter. Raymond James Financial Inc. boosted its holdings in shares of Establishment Labs by 0.4% in the first quarter. Raymond James Financial Inc. now owns 119,752 shares of the company's stock valued at $4,886,000 after acquiring an additional 491 shares in the last quarter. Swiss National Bank boosted its holdings in shares of Establishment Labs by 1.3% in the first quarter. Swiss National Bank now owns 39,000 shares of the company's stock valued at $1,591,000 after acquiring an additional 500 shares in the last quarter. Finally, Quarry LP bought a new position in shares of Establishment Labs in the fourth quarter valued at approximately $27,000. 72.91% of the stock is currently owned by institutional investors.

About Establishment Labs

Establishment Labs Holdings Inc, a medical technology company, manufactures and markets medical devices for aesthetic and reconstructive plastic surgery. The company primarily offers silicone gel-filled breast implants under the Motiva Implants brand. It also provides Motiva Ergonomix and Motiva Ergonomix2 gravity sensitive round soft silicone-gel-filled breast implants; and Motiva Flora Tissue Expander, a breast tissue expander.

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