Intuitive Surgical (NASDAQ:ISRG) Shares Gap Up After Strong Earnings

Key Points

• Intuitive Surgical's shares gapped up significantly from $462.74 to $543.00 following a stronger-than-expected earnings report, with the last traded price at $533.64.
• The company reported $2.40 earnings per share for the quarter, exceeding estimates of $1.99, alongside a revenue of $2.51 billion, surpassing expectations of $2.41 billion.
• Multiple analysts raised their price targets for Intuitive Surgical, with Wells Fargo setting a new target of $600.00 and Piper Sandler raising theirs to $610.00, reflecting positive outlooks among analysts.

Intuitive Surgical, Inc. (NASDAQ:ISRG - Get Free Report) shares gapped up before the market opened on Wednesday following a stronger than expected earnings report. The stock had previously closed at $462.74, but opened at $543.00. Intuitive Surgical shares last traded at $533.64, with a volume of 2,790,782 shares changing hands.

The medical equipment provider reported $2.40 earnings per share for the quarter, topping the consensus estimate of $1.99 by $0.41. Intuitive Surgical had a net margin of 28.51% and a return on equity of 14.56%. The company had revenue of $2.51 billion for the quarter, compared to analysts' expectations of $2.41 billion. During the same quarter in the previous year, the business posted $1.84 earnings per share. Intuitive Surgical's quarterly revenue was up 22.9% on a year-over-year basis.

Analyst Upgrades and Downgrades

ISRG has been the topic of several research reports. Wells Fargo & Company boosted their price target on shares of Intuitive Surgical from $599.00 to $600.00 and gave the stock an "overweight" rating in a research report on Wednesday. UBS Group set a $529.00 price target on shares of Intuitive Surgical in a research report on Monday, October 13th. Piper Sandler boosted their price target on shares of Intuitive Surgical from $595.00 to $610.00 and gave the stock an "overweight" rating in a research report on Wednesday. Truist Financial set a $620.00 price target on shares of Intuitive Surgical and gave the stock a "buy" rating in a research report on Wednesday. Finally, Deutsche Bank Aktiengesellschaft restated a "sell" rating on shares of Intuitive Surgical in a research report on Friday, August 22nd. Sixteen analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $599.68.

Insider Activity

In related news, insider Gary S. Guthart sold 29,360 shares of the company's stock in a transaction dated Friday, August 29th. The shares were sold at an average price of $472.49, for a total value of $13,872,306.40. Following the completion of the sale, the insider directly owned 19,827 shares of the company's stock, valued at $9,368,059.23. This represents a 59.69% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Amy L. Ladd sold 335 shares of the stock in a transaction dated Thursday, September 4th. The shares were sold at an average price of $440.69, for a total transaction of $147,631.15. Following the sale, the director directly owned 739 shares of the company's stock, valued at approximately $325,669.91. The trade was a 31.19% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 45,224 shares of company stock valued at $21,716,492. 0.70% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Intuitive Surgical

Hedge funds have recently modified their holdings of the stock. Stanley Laman Group Ltd. increased its holdings in Intuitive Surgical by 2,091.5% in the 3rd quarter. Stanley Laman Group Ltd. now owns 13,456 shares of the medical equipment provider's stock worth $6,018,000 after buying an additional 12,842 shares during the period. Earned Wealth Advisors LLC increased its holdings in Intuitive Surgical by 6.3% in the 3rd quarter. Earned Wealth Advisors LLC now owns 576 shares of the medical equipment provider's stock worth $258,000 after buying an additional 34 shares during the period. Fifth Third Wealth Advisors LLC increased its holdings in Intuitive Surgical by 5.1% in the 3rd quarter. Fifth Third Wealth Advisors LLC now owns 11,881 shares of the medical equipment provider's stock worth $5,314,000 after buying an additional 578 shares during the period. Penobscot Investment Management Company Inc. increased its holdings in Intuitive Surgical by 11.3% in the 3rd quarter. Penobscot Investment Management Company Inc. now owns 8,153 shares of the medical equipment provider's stock worth $3,646,000 after buying an additional 828 shares during the period. Finally, Eagle Strategies LLC acquired a new position in Intuitive Surgical in the 3rd quarter worth approximately $273,000. Institutional investors and hedge funds own 83.64% of the company's stock.

Intuitive Surgical Stock Performance

The company's fifty day moving average is $454.39 and its two-hundred day moving average is $495.58. The company has a market cap of $193.24 billion, a price-to-earnings ratio of 75.29, a P/E/G ratio of 4.81 and a beta of 1.61.

About Intuitive Surgical

Intuitive Surgical, Inc develops, manufactures, and markets products that enable physicians and healthcare providers to enhance the quality of and access to minimally invasive care in the United States and internationally. The company offers the da Vinci Surgical System that enables complex surgery using a minimally invasive approach; and Ion endoluminal system, which extends its commercial offerings beyond surgery into diagnostic procedures enabling minimally invasive biopsies in the lung.

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