California Public Employees Retirement System Trims Position in Intuitive Surgical, Inc. $ISRG

Key Points

• California Public Employees Retirement System cut its Intuitive Surgical stake by 30.2% in the first quarter, selling 268,935 shares and leaving it with 620,792 shares valued at about $286.2 million.
• Intuitive Surgical recently reported better-than-expected earnings and revenue, with Q2 results boosted by strong demand for its da Vinci robotic surgery systems and continued procedure growth worldwide.
• Despite the strong results, the stock has come under pressure as investors worry about a cautious outlook, slower U.S. procedure growth, and analyst price-target cuts, even though most Wall Street ratings remain bullish.

California Public Employees Retirement System decreased its position in shares of Intuitive Surgical, Inc. (NASDAQ:ISRG - Free Report) by 30.2% during the first quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 620,792 shares of the medical equipment provider's stock after selling 268,935 shares during the quarter. California Public Employees Retirement System owned approximately 0.18% of Intuitive Surgical worth $286,179,000 at the end of the most recent quarter.

A number of other institutional investors have also bought and sold shares of the business. Holos Integrated Wealth LLC bought a new position in shares of Intuitive Surgical in the fourth quarter worth about $25,000. Newbridge Financial Services Group Inc. raised its stake in Intuitive Surgical by 300.0% during the 4th quarter. Newbridge Financial Services Group Inc. now owns 44 shares of the medical equipment provider's stock valued at $25,000 after purchasing an additional 33 shares during the period. Olistico Wealth LLC bought a new stake in Intuitive Surgical during the 4th quarter valued at approximately $28,000. Main Street Group LTD purchased a new position in Intuitive Surgical in the 1st quarter worth approximately $30,000. Finally, Laurel Wealth Advisors LLC purchased a new position in Intuitive Surgical in the 4th quarter worth approximately $31,000. Hedge funds and other institutional investors own 83.64% of the company's stock.

Intuitive Surgical Stock Performance

NASDAQ ISRG opened at $345.42 on Friday. The business's 50 day moving average price is $415.28 and its 200-day moving average price is $467.88. Intuitive Surgical, Inc. has a fifty-two week low of $344.55 and a fifty-two week high of $603.88. The company has a market cap of $122.33 billion, a P/E ratio of 39.57, a P/E/G ratio of 3.27 and a beta of 1.46.

Intuitive Surgical (NASDAQ:ISRG - Get Free Report) last issued its quarterly earnings results on Tuesday, April 21st. The medical equipment provider reported $2.50 EPS for the quarter, beating the consensus estimate of $2.08 by $0.42. The company had revenue of $2.77 billion for the quarter, compared to the consensus estimate of $2.62 billion. Intuitive Surgical had a net margin of 28.45% and a return on equity of 17.09%. The firm's revenue was up 23.0% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.81 EPS. As a group, equities analysts predict that Intuitive Surgical, Inc. will post 8.57 EPS for the current year.

Key Intuitive Surgical News

Here are the key news stories impacting Intuitive Surgical this week:

• Positive Sentiment: Intuitive Surgical reported stronger-than-expected Q2 revenue and earnings, helped by solid demand for its da Vinci robotic surgery systems and continued adoption of its products. Reuters article
• Positive Sentiment: The company still reported healthy procedure growth overall, with worldwide procedures rising and placements of robotic systems remaining strong, which supports the long-term investment case. Yahoo Finance article
• Neutral Sentiment: Several analysts lowered price targets after the report, but most kept bullish ratings such as overweight, buy, or outperform, suggesting Wall Street still sees meaningful upside despite the near-term pullback. Benzinga article
• Negative Sentiment: Management did not raise its forecast for procedure growth, and investors reacted badly to slower U.S. procedure growth and a cautious full-year outlook. Benzinga article
• Negative Sentiment: Reuters also noted concerns that changes to some insurance plans could reduce demand, adding to worries about slower U.S. growth and a softer near-term procedure trajectory. Reuters article

Analysts Set New Price Targets

ISRG has been the subject of several recent analyst reports. Jefferies Financial Group dropped their price target on Intuitive Surgical from $560.00 to $515.00 and set a "hold" rating for the company in a research note on Wednesday, April 22nd. Zacks Research cut Intuitive Surgical from a "strong-buy" rating to a "hold" rating in a report on Monday, March 30th. Piper Sandler reiterated an "overweight" rating and issued a $470.00 target price (down from $580.00) on shares of Intuitive Surgical in a research report on Friday. Wall Street Zen raised Intuitive Surgical from a "hold" rating to a "buy" rating in a research note on Saturday, June 13th. Finally, Deutsche Bank Aktiengesellschaft cut their price target on Intuitive Surgical from $440.00 to $366.00 and set a "sell" rating for the company in a report on Tuesday, June 2nd. One equities research analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Intuitive Surgical has a consensus rating of "Moderate Buy" and a consensus price target of $523.46.

Insider Transactions at Intuitive Surgical

In other news, EVP Gary Loeb sold 400 shares of the business's stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $424.14, for a total transaction of $169,656.00. Following the completion of the sale, the executive vice president directly owned 5,720 shares of the company's stock, valued at approximately $2,426,080.80. The trade was a 6.54% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Amy L. Ladd sold 119 shares of the business's stock in a transaction dated Wednesday, April 29th. The shares were sold at an average price of $463.50, for a total transaction of $55,156.50. Following the completion of the sale, the director directly owned 120 shares of the company's stock, valued at approximately $55,620. This trade represents a 49.79% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 7,169 shares of company stock worth $3,059,135. 0.60% of the stock is currently owned by insiders.

Intuitive Surgical Company Profile

Intuitive Surgical, founded in 1995 and headquartered in Sunnyvale, California, is a medical technology company focused on the design, manufacture and service of robotic-assisted surgical systems. The company is best known for its da Vinci surgical systems, which enable minimally invasive procedures by translating a surgeon's hand movements into finer, scaled motions of small instruments inside the patient. Intuitive's business centers on supplying hospitals and surgical centers with systems, instruments and related technologies that aim to improve precision, visualization and control in the operating room.

In addition to its core surgical platforms, Intuitive markets a portfolio of reusable and disposable instruments, accessories, and proprietary software, and provides training, servicing and clinical support to its customers.

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