Establishment Labs (NASDAQ:ESTA) Trading Down 5.5% - Should You Sell?

Key Points

• Establishment Labs Holdings Inc. shares decreased by 5.5% during mid-day trading, with the stock last trading at $36.22 after reaching a low of $35.93.
• Wall Street analysts have mixed ratings on the stock, with an average rating of "Moderate Buy" and a target price of $55.80, while Needham & Company maintains a "buy" rating with a target price of $48.00.
• The company reported a quarterly revenue of $51.30 million, exceeding expectations, but posted a loss of ($0.57) earnings per share, missing consensus estimates.

Establishment Labs Holdings Inc. (NASDAQ:ESTA - Get Free Report)'s share price was down 5.5% during trading on Thursday . The stock traded as low as $35.93 and last traded at $36.22. Approximately 48,508 shares were traded during trading, a decline of 91% from the average daily volume of 535,006 shares. The stock had previously closed at $38.34.

Analyst Upgrades and Downgrades

Several equities analysts have commented on ESTA shares. Mizuho lifted 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. Needham & Company LLC restated a "buy" rating and set a $48.00 price target on shares of Establishment Labs in a research note on Friday, June 13th. Wall Street Zen lowered shares of Establishment Labs from a "hold" rating to a "sell" rating in a research note on Saturday. BTIG Research began coverage on shares of Establishment Labs in a research note on Friday, May 16th. They set a "buy" rating and a $62.00 price target for the company. Finally, Citigroup raised their price target 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. One analyst has rated the stock with a sell rating, one has issued a hold rating and four have given a buy rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $55.80.

Establishment Labs Stock Performance

The company's fifty day simple moving average is $40.78 and its 200 day simple moving average is $37.11. The company has a current ratio of 2.84, a quick ratio of 1.67 and a debt-to-equity ratio of 9.71. The stock has a market capitalization of $1.11 billion, a P/E ratio of -12.51 and a beta of 0.83.

Establishment Labs (NASDAQ:ESTA - Get Free Report) last announced its quarterly 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). The firm had revenue of $51.30 million during the quarter, compared to the consensus estimate of $50.80 million. Establishment Labs had a negative net margin of 49.89% and a negative return on equity of 224.34%. The firm's revenue for the quarter was up 16.1% on a year-over-year basis. During the same period in the previous year, the business earned ($0.62) earnings per share. As a group, sell-side analysts forecast that Establishment Labs Holdings Inc. will post -2.41 earnings per share for the current fiscal year.

Institutional Trading of Establishment Labs

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Soleus Capital Management L.P. purchased a new position in Establishment Labs in the 2nd quarter worth $9,050,000. GMT Capital Corp purchased a new position in shares of Establishment Labs in the second quarter valued at about $4,218,000. BNP Paribas Financial Markets increased its position in shares of Establishment Labs by 133.6% in the second quarter. BNP Paribas Financial Markets now owns 116,621 shares of the company's stock valued at $4,981,000 after acquiring an additional 66,695 shares during the period. Boothbay Fund Management LLC increased its position in shares of Establishment Labs by 1.7% in the second quarter. Boothbay Fund Management LLC now owns 537,513 shares of the company's stock valued at $22,957,000 after acquiring an additional 9,205 shares during the period. Finally, Balyasny Asset Management L.P. increased its position in shares of Establishment Labs by 50.9% in the second quarter. Balyasny Asset Management L.P. now owns 488,688 shares of the company's stock valued at $20,872,000 after acquiring an additional 164,788 shares during the period. Hedge funds and other institutional investors own 72.91% of the company's stock.

Establishment Labs Company Profile

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.