PROCEPT BioRobotics (NASDAQ:PRCT) Trading Down 8.6% on Analyst Downgrade

Key Points

• PROCEPT BioRobotics shares fell 8.6% after Leerink Partners downgraded the stock from outperform to market perform and set a $29 price target. The stock traded below its previous close of $29.09 and hit an intraday low of $25.59.
• Several analysts remain mixed on the name, with recent actions including Bank of America’s downgrade to underperform and Truist’s lower price target, while others such as Piper Sandler still rate it positively. Overall, MarketBeat lists the stock at a Hold consensus with an average target price of $41.36.
• The company’s latest earnings showed revenue growth of 20.1% year over year to $83.13 million, but it still posted a small earnings miss and a loss of $0.56 per share. Insider selling and recent institutional activity were also noted, though institutional investors still hold 89.46% of the stock.

PROCEPT BioRobotics Corporation (NASDAQ:PRCT - Get Free Report)'s share price was down 8.6% on Thursday after Leerink Partners downgraded the stock from an outperform rating to a market perform rating. Leerink Partners now has a $29.00 price target on the stock. PROCEPT BioRobotics traded as low as $25.59 and last traded at $26.5880. Approximately 480,150 shares traded hands during trading, a decline of 68% from the average daily volume of 1,503,238 shares. The stock had previously closed at $29.09.

A number of other brokerages have also recently commented on PRCT. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of PROCEPT BioRobotics in a research report on Tuesday, April 21st. Truist Financial decreased their price objective on PROCEPT BioRobotics from $47.00 to $30.00 and set a "buy" rating for the company in a report on Friday, February 27th. Piper Sandler restated an "overweight" rating and issued a $35.00 price objective (up from $28.00) on shares of PROCEPT BioRobotics in a research note on Thursday, April 30th. Robert W. Baird began coverage on shares of PROCEPT BioRobotics in a research report on Friday, March 6th. They set a "neutral" rating and a $30.00 target price for the company. Finally, Bank of America downgraded shares of PROCEPT BioRobotics from a "neutral" rating to an "underperform" rating and reduced their target price for the stock from $38.00 to $20.00 in a research note on Thursday, February 26th. Seven equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, PROCEPT BioRobotics presently has a consensus rating of "Hold" and an average target price of $41.36.

Insider Activity at PROCEPT BioRobotics

In other news, EVP Alaleh Nouri sold 5,363 shares of PROCEPT BioRobotics stock in a transaction on Thursday, March 19th. The stock was sold at an average price of $25.96, for a total value of $139,223.48. Following the completion of the transaction, the executive vice president directly owned 105,354 shares in the company, valued at approximately $2,734,989.84. The trade was a 4.84% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders sold 7,373 shares of company stock valued at $196,135 over the last three months. 6.60% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Advisory Services Network LLC lifted its holdings in shares of PROCEPT BioRobotics by 1.3% in the second quarter. Advisory Services Network LLC now owns 20,109 shares of the company's stock worth $1,158,000 after buying an additional 250 shares in the last quarter. Osaic Holdings Inc. grew its stake in PROCEPT BioRobotics by 20.3% during the second quarter. Osaic Holdings Inc. now owns 2,001 shares of the company's stock valued at $115,000 after acquiring an additional 337 shares in the last quarter. ProShare Advisors LLC increased its holdings in PROCEPT BioRobotics by 4.7% during the 4th quarter. ProShare Advisors LLC now owns 9,726 shares of the company's stock worth $306,000 after acquiring an additional 438 shares during the period. California State Teachers Retirement System increased its holdings in PROCEPT BioRobotics by 1.4% during the 2nd quarter. California State Teachers Retirement System now owns 49,446 shares of the company's stock worth $2,848,000 after acquiring an additional 693 shares during the period. Finally, Caitong International Asset Management Co. Ltd lifted its stake in PROCEPT BioRobotics by 436.3% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 917 shares of the company's stock worth $29,000 after purchasing an additional 746 shares in the last quarter. Hedge funds and other institutional investors own 89.46% of the company's stock.

PROCEPT BioRobotics Stock Performance

The company's fifty day simple moving average is $25.78 and its 200 day simple moving average is $28.39. The company has a current ratio of 6.73, a quick ratio of 5.51 and a debt-to-equity ratio of 0.15. The stock has a market capitalization of $1.51 billion, a P/E ratio of -14.61 and a beta of 0.85.

PROCEPT BioRobotics (NASDAQ:PRCT - Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The company reported ($0.56) earnings per share for the quarter, missing the consensus estimate of ($0.55) by ($0.01). PROCEPT BioRobotics had a negative return on equity of 27.70% and a negative net margin of 31.82%.The firm had revenue of $83.13 million during the quarter, compared to the consensus estimate of $80.52 million. During the same period in the previous year, the company posted ($0.45) EPS. The company's revenue for the quarter was up 20.1% compared to the same quarter last year. As a group, sell-side analysts forecast that PROCEPT BioRobotics Corporation will post -1.53 earnings per share for the current fiscal year.

About PROCEPT BioRobotics

PROCEPT BioRobotics, Inc is a medical device company specializing in the development and commercialization of robotic systems for the treatment of benign prostatic hyperplasia (BPH). The company's technology leverages precision robotics and real-time imaging to perform minimally invasive procedures, aiming to reduce patient recovery time and improve clinical outcomes compared to traditional surgical approaches.

The company's flagship product, the AquaBeam Robotic System, uses a high-velocity waterjet to selectively remove prostate tissue while preserving surrounding healthy structures.

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