PROCEPT BioRobotics (NASDAQ:PRCT) Shares Climb 7.6% - Time to Buy?

Key Points

• PROCEPT BioRobotics shares rose 7.6% to about $19.66, although trading volume was 85% below the average daily level.
• Analyst sentiment remains mixed: the stock carries an overall “Hold” rating and an average price target of $25.50, with targets ranging from $20 to $28 among recently cited firms.
• The company’s latest quarter showed 19.3% year-over-year revenue growth to $94.5 million but a $0.47-per-share loss, slightly worse than estimates; profitability remained weak with a negative 32.53% net margin.

Shares of PROCEPT BioRobotics Corporation (NASDAQ:PRCT - Get Free Report) were up 7.6% during trading on Thursday. The company traded as high as $19.54 and last traded at $19.6580. Approximately 229,686 shares changed hands during trading, a decline of 85% from the average daily volume of 1,514,166 shares. The stock had previously closed at $18.27.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on PRCT. TD Cowen lowered their price objective on PROCEPT BioRobotics from $34.00 to $28.00 and set a "buy" rating for the company in a research note on Wednesday, August 5th. Oppenheimer reiterated a "market perform" rating on shares of PROCEPT BioRobotics in a research report on Wednesday, September 9th. Citigroup downgraded shares of PROCEPT BioRobotics to a "hold" rating in a research report on Thursday, July 2nd. Evercore set a $23.00 target price on shares of PROCEPT BioRobotics in a report on Wednesday, August 5th. Finally, Robert W. Baird set a $20.00 price target on shares of PROCEPT BioRobotics in a research report on Wednesday, August 5th. Three investment analysts have rated the stock with a Strong Buy rating, two have given a Buy rating, nine have given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of "Hold" and an average target price of $25.50.

PROCEPT BioRobotics Price Performance

The company has a fifty day simple moving average of $19.64 and a 200 day simple moving average of $21.96. The stock has a market capitalization of $1.15 billion, a price-to-earnings ratio of -10.32 and a beta of 0.92. The company has a debt-to-equity ratio of 0.15, a quick ratio of 5.35 and a current ratio of 6.55.

PROCEPT BioRobotics (NASDAQ:PRCT - Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The company reported ($0.47) earnings per share for the quarter, missing the consensus estimate of ($0.46) by ($0.01). PROCEPT BioRobotics had a negative net margin of 32.53% and a negative return on equity of 30.62%. The company had revenue of $94.50 million during the quarter, compared to analyst estimates of $92.77 million. During the same period in the previous year, the company posted ($0.35) EPS. The company's quarterly revenue was up 19.3% on a year-over-year basis. Equities research analysts forecast that PROCEPT BioRobotics Corporation will post -1.67 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, CEO Larry Wood purchased 23,900 shares of the stock in a transaction on Friday, August 7th. The stock was purchased at an average price of $20.85 per share, for a total transaction of $498,315.00. Following the acquisition, the chief executive officer owned 23,900 shares in the company, valued at $498,315. This trade represents a ∞ increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Over the last three months, insiders have sold 1,043 shares of company stock worth $21,851. Corporate insiders own 4.00% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Versant Capital Management Inc grew its position in shares of PROCEPT BioRobotics by 70.3% during the 3rd quarter. Versant Capital Management Inc now owns 2,032 shares of the company's stock worth $37,000 after buying an additional 839 shares during the period. IFP Advisors Inc increased its stake in shares of PROCEPT BioRobotics by 11.9% in the 2nd quarter. IFP Advisors Inc now owns 12,062 shares of the company's stock valued at $272,000 after acquiring an additional 1,287 shares in the last quarter. Squarepoint Ops LLC acquired a new position in shares of PROCEPT BioRobotics during the 2nd quarter valued at $597,000. Nykredit A S acquired a new position in shares of PROCEPT BioRobotics during the 2nd quarter valued at $27,000. Finally, VELA Investment Management LLC lifted its position in shares of PROCEPT BioRobotics by 62.0% during the 2nd quarter. VELA Investment Management LLC now owns 113,722 shares of the company's stock valued at $2,568,000 after acquiring an additional 43,513 shares during the period. Institutional investors and hedge funds own 89.46% of the company's stock.

About PROCEPT BioRobotics

PROCEPT BioRobotics Corporation is a medical technology company focused on developing and commercializing robotic solutions for the treatment of benign prostatic hyperplasia (BPH), a noncancerous enlargement of the prostate that can cause urinary symptoms. The company's technology is designed to provide a minimally invasive alternative to conventional surgical procedures.

Its primary product is the AquaBeam Robotic System, which uses image guidance, robotic assistance and a high-velocity waterjet to remove targeted prostate tissue.

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