Establishment Labs (NASDAQ:ESTA) Stock Price Down 4.9% - Time to Sell?

Key Points

• Establishment Labs (NASDAQ:ESTA) shares fell by 4.9% on Monday, trading at $39.42 with a significant decline in trading volume, suggesting potential investor caution.
• Analysts' ratings for the stock show a mix of optimism and caution, with five analysts issuing a "Buy" rating and a consensus target price of $56.50, while also noting EPS forecasts of -2.41 for the current fiscal year.
• Despite reporting a revenue increase of 16.1% year-over-year, Establishment Labs missed earnings expectations for the quarter, reflecting challenges in achieving profitability.

Establishment Labs Holdings Inc. (NASDAQ:ESTA - Get Free Report) shares dropped 4.9% during trading on Monday . The stock traded as low as $39.39 and last traded at $39.42. Approximately 160,957 shares were traded during mid-day trading, a decline of 67% from the average daily volume of 488,048 shares. The stock had previously closed at $41.43.

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on ESTA shares. Mizuho increased their target price on 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 reiterated a "buy" rating and issued a $48.00 price objective on shares of Establishment Labs in a report on Friday, June 13th. Wall Street Zen upgraded shares of Establishment Labs from a "sell" rating to a "hold" rating in a report on Saturday, September 20th. 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. Finally, Canaccord Genuity Group started coverage on shares of Establishment Labs in a research report on Wednesday, August 20th. They set a "buy" rating and a $60.00 price target for the company. Five equities research 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. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $56.50.

Establishment Labs Stock Down 5.1%

The company's 50-day moving average price is $39.74 and its 200 day moving average price is $38.03. The company has a debt-to-equity ratio of 9.71, a quick ratio of 1.67 and a current ratio of 2.84.

Establishment Labs (NASDAQ:ESTA - Get Free Report) last announced its 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). Establishment Labs had a negative net margin of 49.89% and a negative return on equity of 224.34%. The business had revenue of $51.30 million for the quarter, compared to the consensus estimate of $50.80 million. During the same quarter last year, the firm posted ($0.62) earnings per share. The business's quarterly revenue was up 16.1% compared to the same quarter last year. Establishment Labs has set its FY 2025 guidance at EPS. Sell-side analysts forecast that Establishment Labs Holdings Inc. will post -2.41 EPS for the current fiscal year.

Institutional Investors Weigh In On Establishment Labs

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. CenterBook Partners LP bought a new position in shares of Establishment Labs in the second quarter worth approximately $16,204,000. Viking Global Investors LP purchased a new position in shares of Establishment Labs during the 2nd quarter valued at $14,669,000. First Light Asset Management LLC purchased a new position in shares of Establishment Labs during the 1st quarter valued at $13,746,000. Nuveen LLC bought a new position in Establishment Labs in the 1st quarter worth $13,054,000. Finally, Pier Capital LLC purchased a new stake in Establishment Labs in the 2nd quarter worth $10,777,000. 72.91% of the stock is owned by hedge funds and other 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.