Insider Selling: Intuitive Surgical (NASDAQ:ISRG) Director Sells $4,000,000.00 in Stock

Key Points

• Intuitive Surgical director Gary Guthart sold 10,000 shares for $4 million at $400 per share under a pre-arranged Rule 10b5-1 trading plan. He continues to own 1,245,679 shares, worth approximately $498.3 million.
• The company reported a strong quarter, with revenue rising 18.4% year over year to $2.89 billion and earnings of $2.80 per share, beating analysts’ $2.48 estimate.
• Analyst sentiment remains positive, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $508.68 versus a recent price near $402.30, though its premium valuation and slowing domestic procedure growth remain concerns.

Intuitive Surgical, Inc. (NASDAQ:ISRG - Get Free Report) Director Gary Guthart sold 10,000 shares of the firm's stock in a transaction dated Tuesday, August 11th. The stock was sold at an average price of $400.00, for a total transaction of $4,000,000.00. Following the completion of the transaction, the director directly owned 1,245,679 shares in the company, valued at approximately $498,271,600. This represents a 0.80% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Intuitive Surgical Price Performance

NASDAQ ISRG traded up $1.07 during trading hours on Wednesday, hitting $402.30. 2,165,107 shares of the company's stock traded hands, compared to its average volume of 2,467,366. The company has a market capitalization of $142.12 billion, a PE ratio of 46.08, a PEG ratio of 2.84 and a beta of 1.46. Intuitive Surgical, Inc. has a 52-week low of $328.57 and a 52-week high of $603.88. The firm's 50-day moving average is $392.47 and its 200-day moving average is $443.35.

Intuitive Surgical (NASDAQ:ISRG - Get Free Report) last released its earnings results on Thursday, July 16th. The medical equipment provider reported $2.80 earnings per share for the quarter, topping analysts' consensus estimates of $2.48 by $0.32. The business had revenue of $2.89 billion for the quarter, compared to analyst estimates of $2.83 billion. Intuitive Surgical had a net margin of 28.45% and a return on equity of 16.91%. The business's revenue was up 18.4% on a year-over-year basis. During the same period last year, the company posted $1.81 EPS. Equities research analysts predict that Intuitive Surgical, Inc. will post 8.87 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Intuitive Surgical

Several institutional investors have recently modified their holdings of ISRG. Main Street Group LTD purchased a new stake in Intuitive Surgical during the 1st quarter worth about $30,000. Laurel Wealth Advisors LLC purchased a new stake in shares of Intuitive Surgical during the fourth quarter worth approximately $31,000. Vermillion Wealth Management Inc. raised its holdings in Intuitive Surgical by 58.1% in the first quarter. Vermillion Wealth Management Inc. now owns 68 shares of the medical equipment provider's stock valued at $31,000 after acquiring an additional 25 shares in the last quarter. Turning Point Benefit Group Inc. lifted its stake in Intuitive Surgical by 833.3% in the fourth quarter. Turning Point Benefit Group Inc. now owns 56 shares of the medical equipment provider's stock worth $32,000 after acquiring an additional 50 shares during the last quarter. Finally, Motiv8 Investments LLC acquired a new position in Intuitive Surgical during the 4th quarter worth approximately $34,000. Institutional investors and hedge funds own 83.64% of the company's stock.

Intuitive Surgical News Roundup

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

• Positive Sentiment: Oppenheimer upgraded ISRG to Outperform from Perform and set a $500 price target. The firm said Intuitive Surgical’s strategy of “crowding out competitors” should help protect da Vinci’s market position, as Medtronic’s Hugo and Intuitive’s Ottava are not viewed as significant near-term threats. Oppenheimer upgrades Intuitive Surgical
• Positive Sentiment: Bernstein reiterated a Buy rating and maintained a $685 price target, citing progress on Intuitive’s next-generation gastrointestinal surgery platform as a potential source of longer-term growth. Bernstein maintains Buy rating
• Positive Sentiment: The ENCOMPASS post-market clinical trial is highlighting the potential for robotic-assisted lung biopsy procedures, supporting broader applications for Intuitive’s technology and possible future utilization growth. ENCOMPASS trial update
• Neutral Sentiment: Intuitive’s latest quarter was strong, with revenue up 18.4% year over year to $2.89 billion and EPS of $2.80 versus the $2.48 consensus estimate. However, the stock’s premium valuation—about 46 times earnings—leaves less room for execution disappointments.
• Negative Sentiment: Investors remain concerned about slowing domestic procedure growth, which helped pressure the stock despite the earnings beat. Recent director and executive sales were executed under pre-arranged Rule 10b5-1 plans, limiting their value as bearish signals but potentially weighing modestly on sentiment.

Wall Street Analyst Weigh In

Several brokerages have issued reports on ISRG. The Goldman Sachs Group set a $558.00 target price on Intuitive Surgical in a report on Wednesday, May 27th. Robert W. Baird lowered 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 report on Friday, July 17th. Wall Street Zen raised shares of Intuitive Surgical from a "hold" rating to a "buy" rating in a report on Saturday, June 13th. Stifel Nicolaus cut their price objective on shares of Intuitive Surgical from $670.00 to $550.00 and set a "buy" rating for the company in a research report on Friday, July 17th. Finally, Royal Bank Of Canada decreased their target price on shares of Intuitive Surgical from $650.00 to $600.00 and set an "outperform" rating on the stock in a report on Monday, July 13th. Twenty-two research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Intuitive Surgical presently has a consensus rating of "Moderate Buy" and an average price target of $508.68.

About Intuitive Surgical

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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