Empowered Funds LLC Boosts Stock Position in Intuitive Surgical, Inc. $ISRG

Key Points

• Empowered Funds LLC increased its Intuitive Surgical position by 143.1% in the first quarter, bringing its holdings to 43,981 shares valued at approximately $20.3 million. Institutional investors and hedge funds collectively own 83.64% of the company.
• Intuitive Surgical reported quarterly earnings of $2.80 per share on $2.89 billion in revenue, surpassing analyst expectations, while revenue rose 18.4% year over year. Analysts maintain a “Moderate Buy” consensus with an average price target of $517.21, despite recent target reductions.
• The stock opened at $361.80, well below its 50-day and 200-day moving averages, amid concerns about slower U.S. procedure growth and potential healthcare-coverage risks. Company insiders sold 6,550 shares worth approximately $2.77 million over the past 90 days under pre-arranged trading plans.

Empowered Funds LLC lifted its position in Intuitive Surgical, Inc. (NASDAQ:ISRG - Free Report) by 143.1% during the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 43,981 shares of the medical equipment provider's stock after buying an additional 25,886 shares during the period. Empowered Funds LLC's holdings in Intuitive Surgical were worth $20,275,000 as of its most recent SEC filing.

A number of other large investors have also made changes to their positions in ISRG. Norges Bank acquired a new position in Intuitive Surgical during the 4th quarter valued at about $2,856,987,000. J. Stern & Co. LLP increased its holdings in shares of Intuitive Surgical by 18,504.6% during the fourth quarter. J. Stern & Co. LLP now owns 2,127,248 shares of the medical equipment provider's stock valued at $1,204,788,000 after acquiring an additional 2,115,814 shares in the last quarter. Northwestern Mutual Wealth Management Co. raised its position in shares of Intuitive Surgical by 1,043.3% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,342,121 shares of the medical equipment provider's stock valued at $760,124,000 after purchasing an additional 1,224,734 shares during the last quarter. Arrowstreet Capital Limited Partnership boosted its stake in Intuitive Surgical by 95.3% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,105,544 shares of the medical equipment provider's stock worth $970,635,000 after purchasing an additional 1,027,475 shares in the last quarter. Finally, Polen Capital Management LLC acquired a new stake in Intuitive Surgical in the 4th quarter worth approximately $477,225,000. 83.64% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of research analysts have issued reports on the stock. Robert W. Baird cut their price target on shares of Intuitive Surgical from $525.00 to $500.00 and set an "outperform" rating on the stock in a research note on Friday, July 17th. BTIG Research lowered their price objective on shares of Intuitive Surgical from $512.00 to $469.00 and set a "buy" rating for the company in a research note on Friday, July 17th. The Goldman Sachs Group set a $558.00 price objective on shares of Intuitive Surgical in a report on Wednesday, May 27th. Stifel Nicolaus reduced their target price on Intuitive Surgical from $670.00 to $550.00 and set a "buy" rating for the company in a research note on Friday, July 17th. Finally, Sanford C. Bernstein lowered their price target on Intuitive Surgical from $750.00 to $685.00 and set an "outperform" rating for the company in a research report on Friday, July 17th. Twenty-one investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $517.21.

Insider Activity

In other news, EVP Gary Loeb sold 400 shares of the company's stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $424.14, for a total value of $169,656.00. Following the sale, the executive vice president owned 5,720 shares in the company, valued at $2,426,080.80. This represents a 6.54% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Iman Jeddi sold 5,625 shares of the firm's stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $420.55, for a total value of $2,365,593.75. Following the sale, the senior vice president directly owned 6,463 shares in the company, valued at approximately $2,718,014.65. This trade represents a 46.53% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 6,550 shares of company stock worth $2,767,249 over the last ninety days. 0.60% of the stock is owned by insiders.

Key Intuitive Surgical News

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

• Positive Sentiment: Durable demand and improved margins: On its second-quarter earnings call, Intuitive Surgical highlighted continued demand for its da Vinci surgical systems and raised margin guidance. The company’s latest quarter also exceeded analyst expectations for revenue and earnings, supporting confidence in operating execution. ISRG Q2 Earnings Call Signals Durable Demand & U.S. Caution
• Positive Sentiment: Analysts see significant recovery potential: Wall Street’s average price target is substantially above the current trading level, with one analyst reportedly assigning a target of $685. The bullish view reflects expectations for further procedure growth, broader adoption of robotic-assisted surgery and recurring instrument and service revenue. Why Wall Street Thinks Intuitive Surgical Stock Could Soar
• Positive Sentiment: Patient-awareness campaign: Intuitive announced a collaboration with Deion “Coach Prime” Sanders to educate patients about surgical options and encourage discussions with physicians. The campaign could increase public awareness of da Vinci procedures, although its financial impact is likely longer term. Intuitive Collaborates with Deion Sanders
• Neutral Sentiment: Governance update: The board amended the company’s bylaws and proxy rules. The changes may affect shareholder proposals and corporate governance but do not appear to alter Intuitive Surgical’s operating outlook. Intuitive Surgical Tightens Shareholder Governance and Proxy Rules
• Negative Sentiment: U.S. growth and coverage risks: Management cautioned about slower U.S. procedure growth and deferred care. Separately, the loss of enhanced Affordable Care Act subsidies could reduce insurance coverage, potentially delaying elective procedures and limiting near-term demand. The ACA Coverage Debate Just Became a $50 Billion Question

Intuitive Surgical Price Performance

ISRG stock opened at $361.80 on Wednesday. The firm's fifty day simple moving average is $403.62 and its 200-day simple moving average is $455.95. The company has a market capitalization of $127.82 billion, a P/E ratio of 41.44, a price-to-earnings-growth ratio of 2.58 and a beta of 1.46. Intuitive Surgical, Inc. has a 12 month low of $328.57 and a 12 month high of $603.88.

Intuitive Surgical (NASDAQ:ISRG - Get Free Report) last issued its earnings results on Thursday, July 16th. The medical equipment provider reported $2.80 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.48 by $0.32. The firm had revenue of $2.89 billion during the quarter, compared to analysts' expectations of $2.83 billion. Intuitive Surgical had a net margin of 28.45% and a return on equity of 16.91%. The firm's revenue was up 18.4% compared to the same quarter last year. During the same quarter last year, the company posted $1.81 earnings per share. As a group, sell-side analysts forecast that Intuitive Surgical, Inc. will post 8.87 earnings per share for the current year.

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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