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

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.

Wall Street Zen lowered shares of Establishment Labs (NASDAQ:ESTA - Free Report) from a hold rating to a sell rating in a research note published on Saturday morning.

A number of other research firms have also commented on ESTA. Needham & Company LLC reaffirmed a "buy" rating and issued a $48.00 price objective on shares of Establishment Labs in a research note on Friday, June 13th. Citigroup raised their price objective on shares of Establishment Labs from $38.00 to $47.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 9th. BTIG Research started coverage on shares of Establishment Labs in a research note on Friday, May 16th. They issued a "buy" rating and a $62.00 price objective for the company. Finally, Mizuho raised their price objective on shares of Establishment Labs from $58.00 to $70.00 and gave the stock an "outperform" rating in a research note on Wednesday, July 16th. Five research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $56.50.

Establishment Labs Price Performance

Shares of NASDAQ ESTA traded up $1.39 during mid-day trading on Friday, reaching $39.09. 510,102 shares of the company traded hands, compared to its average volume of 476,413. The company has a debt-to-equity ratio of 9.71, a current ratio of 2.84 and a quick ratio of 1.67. The firm has a market cap of $1.13 billion, a PE ratio of -12.82 and a beta of 0.83. Establishment Labs has a fifty-two week low of $26.56 and a fifty-two week high of $50.85. The stock has a fifty day simple moving average of $40.76 and a 200-day simple moving average of $37.17.

Establishment Labs (NASDAQ:ESTA - Get Free Report) last posted its quarterly earnings results on Thursday, August 7th. The company reported ($0.57) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.54) by ($0.03). The business had revenue of $51.30 million during the quarter, compared to analyst estimates of $50.80 million. Establishment Labs had a negative return on equity of 224.34% and a negative net margin of 49.89%.The company's quarterly revenue was up 16.1% compared to the same quarter last year. During the same quarter last year, the firm posted ($0.62) EPS. Establishment Labs has set its FY 2025 guidance at EPS. Equities research analysts anticipate that Establishment Labs will post -2.41 EPS for the current fiscal year.

Institutional Investors Weigh In On Establishment Labs

Institutional investors have recently modified their holdings of the stock. Geode Capital Management LLC increased its holdings in shares of Establishment Labs by 1.2% during the 2nd quarter. Geode Capital Management LLC now owns 25,917 shares of the company's stock worth $1,105,000 after purchasing an additional 299 shares during the period. Patriot Financial Group Insurance Agency LLC increased its holdings in shares of Establishment Labs by 5.2% during the 2nd quarter. Patriot Financial Group Insurance Agency LLC now owns 6,025 shares of the company's stock worth $257,000 after purchasing an additional 300 shares during the period. Raymond James Financial Inc. increased its holdings in shares of Establishment Labs by 0.4% during the 1st quarter. Raymond James Financial Inc. now owns 119,752 shares of the company's stock worth $4,886,000 after purchasing an additional 491 shares during the period. Swiss National Bank boosted its position in shares of Establishment Labs by 1.3% during the 1st 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 acquired a new stake in shares of Establishment Labs during the 4th quarter valued at about $27,000. Institutional investors and hedge funds own 72.91% of the company's stock.

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.