JPMorgan Chase & Co. Has Lowered Expectations for Intuitive Surgical (NASDAQ:ISRG) Stock Price

Key Points

• JPMorgan cut its price target on Intuitive Surgical from $550 to $450 while keeping an overweight rating, implying about 27.8% upside from the current price.
• The stock fell sharply to $352.07 on Friday, near its 52-week low, and was trading well below both its 50-day and 200-day moving averages.
• Despite the weak stock reaction, Intuitive Surgical recently delivered better-than-expected earnings and revenue, but analysts are becoming more cautious as several firms also lowered their price targets.

Intuitive Surgical (NASDAQ:ISRG - Get Free Report) had its price objective decreased by JPMorgan Chase & Co. from $550.00 to $450.00 in a report released on Friday,Benzinga reports. The brokerage presently has an "overweight" rating on the medical equipment provider's stock. JPMorgan Chase & Co.'s price objective indicates a potential upside of 27.82% from the company's current price.

A number of other equities research analysts have also recently weighed in on ISRG. Wells Fargo & Company reissued an "overweight" rating and issued a $487.00 price target (down from $654.00) on shares of Intuitive Surgical in a research report on Friday. Evercore set a $430.00 target price on Intuitive Surgical in a research report on Monday, July 6th. BTIG Research cut their price target on Intuitive Surgical from $512.00 to $469.00 and set a "buy" rating on the stock in a research report on Friday. Truist Financial reduced their price objective on Intuitive Surgical from $580.00 to $510.00 and set a "buy" rating for the company in a research note on Thursday. Finally, Barclays set a $651.00 price objective on Intuitive Surgical and gave the company an "overweight" rating in a report on Thursday, April 23rd. One equities research analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Intuitive Surgical currently has an average rating of "Moderate Buy" and an average price target of $523.46.

Intuitive Surgical Stock Performance

Shares of NASDAQ:ISRG traded down $50.26 on Friday, hitting $352.07. 4,823,535 shares of the company's stock were exchanged, compared to its average volume of 2,251,363. Intuitive Surgical has a 1-year low of $349.90 and a 1-year high of $603.88. The company has a market capitalization of $124.69 billion, a PE ratio of 42.84, a P/E/G ratio of 3.16 and a beta of 1.46. The firm's 50-day moving average is $417.37 and its 200 day moving average is $468.74.

Intuitive Surgical (NASDAQ:ISRG - Get Free Report) last posted its earnings results on Tuesday, April 21st. The medical equipment provider reported $2.50 earnings per share for the quarter, topping the consensus estimate of $2.08 by $0.42. The firm had revenue of $2.77 billion during the quarter, compared to analysts' expectations of $2.62 billion. Intuitive Surgical had a return on equity of 15.98% and a net margin of 28.15%.The firm's revenue was up 23.0% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.81 earnings per share. On average, analysts anticipate that Intuitive Surgical will post 8.57 EPS for the current fiscal year.

Insider Buying and Selling

In other Intuitive Surgical news, Director Amy L. Ladd sold 119 shares of the business's stock in a transaction on Wednesday, April 29th. The shares were sold at an average price of $463.50, for a total value of $55,156.50. Following the transaction, the director directly owned 120 shares of the company's stock, valued at approximately $55,620. The trade was a 49.79% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed 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 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 completion of the sale, the senior vice president owned 6,463 shares of the company's stock, valued at $2,718,014.65. This trade represents a 46.53% decrease in their position. 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 sold a total of 7,169 shares of company stock valued at $3,059,135 over the last three months. 0.60% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in ISRG. Brighton Jones LLC boosted its stake in shares of Intuitive Surgical by 24.9% in the fourth quarter. Brighton Jones LLC now owns 3,672 shares of the medical equipment provider's stock valued at $1,916,000 after buying an additional 731 shares in the last quarter. Sivia Capital Partners LLC grew its stake in shares of Intuitive Surgical by 3.8% during the 2nd quarter. Sivia Capital Partners LLC now owns 928 shares of the medical equipment provider's stock worth $504,000 after purchasing an additional 34 shares during the period. Schnieders Capital Management LLC. lifted its stake in shares of Intuitive Surgical by 38.0% in the second quarter. Schnieders Capital Management LLC. now owns 973 shares of the medical equipment provider's stock valued at $529,000 after purchasing an additional 268 shares during the period. Osterweis Capital Management Inc. acquired a new stake in shares of Intuitive Surgical in the second quarter valued at about $200,000. Finally, Main Street Financial Solutions LLC grew its position in Intuitive Surgical by 92.4% during the second quarter. Main Street Financial Solutions LLC now owns 2,929 shares of the medical equipment provider's stock worth $1,592,000 after buying an additional 1,407 shares during the period. 83.64% of the stock is currently owned by institutional investors and hedge funds.

Key Intuitive Surgical News

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

• Positive Sentiment: Intuitive Surgical beat second-quarter expectations, with revenue of $2.89 billion and adjusted EPS of $2.80 topping estimates, supported by strong demand for da Vinci robotic surgery systems. Article Title
• Positive Sentiment: The company reported continued global procedure growth, including approximately 16% growth in worldwide procedures, showing that adoption of its robotic surgery platform remains healthy overall. Article Title
• Neutral Sentiment: Several Wall Street firms cut price targets after the report, but most kept bullish ratings, suggesting analysts still see upside while becoming more cautious on near-term growth. Article Title
• Negative Sentiment: Shares fell sharply because U.S. procedure growth slowed and management’s outlook disappointed investors, raising concerns that growth is normalizing faster than expected. Article Title
• Negative Sentiment: Management also warned that insurance-related changes could weigh on U.S. demand, while ongoing China weakness and a prior Class II recall add to investor worries about near-term execution. Article Title

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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