Establishment Labs (NASDAQ:ESTA) Shares Gap Down - Here's Why

Key Points

• Shares gapped down Wednesday, opening at $64.42 after a $70.99 close and last trading around $68.61 on volume of ~269,600 shares.
• Q1 results showed an EPS miss (‑$0.45 vs. consensus ‑$0.35) but revenue beat at $59.88M (+44.7% YoY), while profitability metrics remain negative (negative ROE and net margin).
• Analysts are generally positive (six Buys, one Hold, one Sell) with a consensus price target of $86.86 and several firms raising targets to ~$90, while insiders have sold ~225,000 shares over the last three months and institutions own ~72.9%.

Establishment Labs Holdings Inc. (NASDAQ:ESTA - Get Free Report) shares gapped down before the market opened on Wednesday . The stock had previously closed at $70.99, but opened at $64.42. Establishment Labs shares last traded at $68.6070, with a volume of 269,607 shares trading hands.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on the stock. Canaccord Genuity Group boosted their price target on shares of Establishment Labs from $85.00 to $90.00 and gave the company a "buy" rating in a report on Thursday, February 26th. BTIG Research reaffirmed a "buy" rating and set a $88.00 price target on shares of Establishment Labs in a report on Wednesday, April 29th. Stephens lifted their price target on Establishment Labs from $85.00 to $90.00 and gave the company an "overweight" rating in a report on Wednesday, February 25th. Wall Street Zen cut Establishment Labs from a "buy" rating to a "hold" rating in a report on Saturday, March 28th. Finally, Weiss Ratings restated a "sell (e+)" rating on shares of Establishment Labs in a research note on Friday, March 27th. Six analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, Establishment Labs has an average rating of "Moderate Buy" and a consensus price target of $86.86.

Establishment Labs Stock Up 5.1%

The stock has a market cap of $2.19 billion, a P/E ratio of -42.89 and a beta of 1.12. The company has a quick ratio of 2.00, a current ratio of 3.04 and a debt-to-equity ratio of 10.51. The business has a 50-day simple moving average of $65.43 and a 200-day simple moving average of $66.22.

Establishment Labs (NASDAQ:ESTA - Get Free Report) last announced its earnings results on Thursday, May 7th. The company reported ($0.45) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.35) by ($0.10). The company had revenue of $59.88 million for the quarter, compared to the consensus estimate of $57.40 million. Establishment Labs had a negative return on equity of 201.79% and a negative net margin of 24.19%.The firm's revenue for the quarter was up 44.7% compared to the same quarter last year. During the same period in the previous year, the company earned ($0.70) EPS. Analysts expect that Establishment Labs Holdings Inc. will post -0.86 EPS for the current year.

Insider Buying and Selling at Establishment Labs

In related news, Director Quiros Juan Jose Chacon sold 7,751 shares of the firm's stock in a transaction on Monday, May 4th. The stock was sold at an average price of $70.48, for a total value of $546,290.48. Following the completion of the transaction, the director directly owned 1,032,504 shares of the company's stock, valued at $72,770,881.92. This trade represents a 0.75% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Insiders sold 225,000 shares of company stock valued at $14,935,438 over the last three months. 9.99% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in ESTA. Geode Capital Management LLC increased its position in Establishment Labs by 1.2% in the second 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. Brian Low Financial Group LLC increased its position in Establishment Labs by 10.2% in the first quarter. Brian Low Financial Group LLC now owns 4,598 shares of the company's stock worth $261,000 after purchasing an additional 424 shares during the period. Handelsbanken Fonder AB increased its position in Establishment Labs by 7.3% in the fourth quarter. Handelsbanken Fonder AB now owns 8,800 shares of the company's stock worth $641,000 after purchasing an additional 600 shares during the period. Swiss National Bank increased its position in Establishment Labs by 1.8% in the fourth quarter. Swiss National Bank now owns 34,200 shares of the company's stock worth $2,492,000 after purchasing an additional 600 shares during the period. Finally, Kestra Advisory Services LLC acquired a new stake in Establishment Labs in the fourth quarter worth about $47,000. 72.91% of the stock is owned by institutional investors.

Establishment Labs Company Profile

Establishment Labs Holdings Inc is a global medical technology company specializing in the design, development and manufacture of silicone gel breast implants for aesthetic and reconstructive surgery. The company's proprietary portfolio is built around patient-focused safety, customization and innovation, offering solutions intended to enhance surgical outcomes and support clinical traceability.

The company's flagship products fall under the Motiva® brand, which includes a range of ergonomic and round breast implants featuring SilkSurface® texturing and an embedded Q Inside® Safety microtransponder for unique implant identification.

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