Intuitive Surgical, Inc. $ISRG Holdings Boosted by Principal Financial Group Inc.

Key Points

• Principal Financial Group increased its Intuitive Surgical stake by 11.8% in the first quarter, buying 64,877 additional shares and bringing its holding to 615,749 shares worth about $283.9 million.
• Intuitive Surgical stock was down 6.8% and trading near its 52-week low, even as the company reported strong quarterly results with $2.50 EPS versus $2.08 expected and 23% revenue growth year over year.
• Analysts remain generally constructive, with a Moderate Buy consensus and an average price target of $566.27, though several firms have recently cut targets amid valuation and margin concerns ahead of the company’s next earnings report.

Principal Financial Group Inc. raised its stake in Intuitive Surgical, Inc. (NASDAQ:ISRG - Free Report) by 11.8% in the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 615,749 shares of the medical equipment provider's stock after acquiring an additional 64,877 shares during the period. Principal Financial Group Inc. owned 0.17% of Intuitive Surgical worth $283,854,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also made changes to their positions in ISRG. State Street Corp boosted its position in Intuitive Surgical by 1.0% during the 4th quarter. State Street Corp now owns 15,701,591 shares of the medical equipment provider's stock valued at $8,892,753,000 after purchasing an additional 162,264 shares during the period. Capital World Investors grew its stake in Intuitive Surgical by 1.7% during the 4th quarter. Capital World Investors now owns 7,856,018 shares of the medical equipment provider's stock worth $4,449,491,000 after buying an additional 127,526 shares during the last quarter. Norges Bank acquired a new stake in Intuitive Surgical in the fourth quarter worth $2,856,987,000. Invesco Ltd. increased its position in Intuitive Surgical by 17.4% in the fourth quarter. Invesco Ltd. now owns 4,128,735 shares of the medical equipment provider's stock worth $2,338,350,000 after buying an additional 611,268 shares during the period. Finally, Wellington Management Group LLP lifted its stake in Intuitive Surgical by 9.4% in the fourth quarter. Wellington Management Group LLP now owns 3,445,880 shares of the medical equipment provider's stock valued at $1,951,609,000 after buying an additional 294,651 shares during the last quarter. 83.64% of the stock is currently owned by institutional investors and hedge funds.

Intuitive Surgical Stock Down 6.8%

Shares of ISRG opened at $379.50 on Wednesday. The firm has a market capitalization of $134.40 billion, a PE ratio of 46.00, a P/E/G ratio of 3.31 and a beta of 1.46. The firm has a 50-day moving average price of $419.65 and a 200 day moving average price of $471.31. Intuitive Surgical, Inc. has a 52-week low of $378.50 and a 52-week high of $603.88.

Intuitive Surgical (NASDAQ:ISRG - Get Free Report) last released its quarterly earnings results on Tuesday, April 21st. The medical equipment provider reported $2.50 EPS for the quarter, topping analysts' consensus estimates 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 28.15% and a return on equity of 15.98%. Intuitive Surgical's revenue was up 23.0% on a year-over-year basis. During the same period in the previous year, the firm earned $1.81 EPS. On average, equities analysts expect that Intuitive Surgical, Inc. will post 8.57 EPS for the current year.

Analyst Ratings Changes

Several equities analysts have recently commented on ISRG shares. Truist Financial lowered their price target on shares of Intuitive Surgical from $650.00 to $580.00 and set a "buy" rating for the company in a research report on Wednesday, April 15th. The Goldman Sachs Group set a $558.00 price objective on shares of Intuitive Surgical in a research report on Wednesday, May 27th. BTIG Research set a $512.00 target price on shares of Intuitive Surgical in a research note on Monday. Jefferies Financial Group decreased their target price on shares of Intuitive Surgical from $560.00 to $515.00 and set a "hold" rating for the company in a research report on Wednesday, April 22nd. Finally, Raymond James Financial dropped their price target on shares of Intuitive Surgical from $615.00 to $577.00 and set an "outperform" rating on the stock in a research note on Wednesday, April 22nd. One analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $566.27.

Intuitive Surgical News Summary

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

• Positive Sentiment: Analysts and market watchers still point to solid underlying business momentum, including strong da Vinci procedure growth, continued da Vinci 5 adoption, and expectations that Intuitive Surgical could beat Q2 earnings estimates. Article Title
• Positive Sentiment: Some commentary says the recent weakness reflects investor sentiment and valuation concerns more than company fundamentals, suggesting the long-term growth story remains intact. Article Title
• Neutral Sentiment: The company is heading into its July 16 earnings report, which is keeping traders on the sidelines and increasing volatility ahead of the release. Article Title
• Negative Sentiment: Fresh analyst price-target cuts, including TD Cowen’s reduction to $520 from $585, have reinforced concerns about valuation, competition, international-market challenges, and tariff pressure on margins. Article Title
• Negative Sentiment: The stock also saw unusually heavy put buying and a broader pullback in medtech names, signaling that some investors are positioning defensively ahead of earnings. Article Title

Insider Activity at Intuitive Surgical

In related news, SVP Iman Jeddi sold 5,625 shares of the business's stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $420.55, for a total transaction of $2,365,593.75. Following the sale, the senior vice president owned 6,463 shares of the company's stock, valued at $2,718,014.65. The trade was a 46.53% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Amy L. Ladd sold 500 shares of the company's stock in a transaction that occurred on Tuesday, April 28th. The stock was sold at an average price of $473.46, for a total value of $236,730.00. Following the completion of the sale, the director owned 239 shares of the company's stock, valued at $113,156.94. This trade represents a 67.66% 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 7,169 shares of company stock worth $3,059,135 over the last quarter. 0.60% of the stock is currently owned by company insiders.

Intuitive Surgical 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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