Zacks Research Downgrades Intuitive Surgical (NASDAQ:ISRG) to Hold

Key Points

• Zacks Research has downgraded Intuitive Surgical (NASDAQ:ISRG) from a "strong-buy" to a "hold" rating, signaling a shift in investment outlook.
• Several brokerages have updated their price targets for Intuitive Surgical, with Barclays lowering their target to $635.00 while Citigroup raised theirs to $650.00, reflecting mixed analyst sentiments.
• Despite a strong quarterly earnings report, Intuitive Surgical shares have faced selling pressure from company insiders, indicating potential concerns among executives.

Intuitive Surgical (NASDAQ:ISRG - Get Free Report) was downgraded by investment analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a note issued to investors on Wednesday,Zacks.com reports.

Several other brokerages also recently commented on ISRG. Barclays lowered their price target on Intuitive Surgical from $684.00 to $635.00 and set an "overweight" rating on the stock in a report on Thursday, April 24th. Wall Street Zen raised shares of Intuitive Surgical from a "hold" rating to a "buy" rating in a report on Saturday, July 26th. Citigroup reiterated a "buy" rating and issued a $650.00 target price (up from $590.00) on shares of Intuitive Surgical in a research note on Thursday, May 22nd. Evercore ISI boosted their target price on shares of Intuitive Surgical from $470.00 to $550.00 and gave the stock an "in-line" rating in a research report on Tuesday, July 8th. Finally, Deutsche Bank Aktiengesellschaft cut shares of Intuitive Surgical from a "hold" rating to a "sell" rating and decreased their price target for the company from $515.00 to $440.00 in a report on Monday, June 9th. Thirteen research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Intuitive Surgical has a consensus rating of "Moderate Buy" and a consensus price target of $595.95.

Intuitive Surgical Price Performance

ISRG opened at $469.88 on Wednesday. The company has a market capitalization of $168.44 billion, a PE ratio of 65.53, a price-to-earnings-growth ratio of 5.04 and a beta of 1.59. The business has a 50-day moving average of $505.14 and a 200-day moving average of $522.78. Intuitive Surgical has a fifty-two week low of $425.00 and a fifty-two week high of $616.00.

Intuitive Surgical (NASDAQ:ISRG - Get Free Report) last released its quarterly earnings results on Tuesday, July 22nd. The medical equipment provider reported $2.19 earnings per share for the quarter, beating analysts' consensus estimates of $1.93 by $0.26. Intuitive Surgical had a net margin of 28.51% and a return on equity of 14.56%. The business had revenue of $2.44 billion for the quarter, compared to the consensus estimate of $2.35 billion. During the same quarter last year, the firm earned $1.78 EPS. Intuitive Surgical's revenue for the quarter was up 21.4% on a year-over-year basis. On average, equities research analysts expect that Intuitive Surgical will post 6.43 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, SVP Mark Brosius sold 216 shares of Intuitive Surgical stock in a transaction dated Friday, June 6th. The stock was sold at an average price of $563.11, for a total transaction of $121,631.76. Following the sale, the senior vice president directly owned 907 shares of the company's stock, valued at $510,740.77. This trade represents a 19.23% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Myriam Curet sold 4,500 shares of the company's stock in a transaction that occurred on Friday, July 25th. The shares were sold at an average price of $492.48, for a total value of $2,216,160.00. Following the completion of the transaction, the executive vice president directly owned 353 shares of the company's stock, valued at approximately $173,845.44. This trade represents a 92.73% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 15,839 shares of company stock worth $7,896,972 in the last ninety days. Insiders own 0.70% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Chilton Capital Management LLC lifted its stake in Intuitive Surgical by 614.3% during the first quarter. Chilton Capital Management LLC now owns 50 shares of the medical equipment provider's stock worth $25,000 after purchasing an additional 43 shares during the period. Tobam boosted its stake in Intuitive Surgical by 666.7% in the 2nd quarter. Tobam now owns 46 shares of the medical equipment provider's stock valued at $25,000 after buying an additional 40 shares in the last quarter. Parvin Asset Management LLC bought a new stake in Intuitive Surgical in the fourth quarter valued at $26,000. Global Financial Private Client LLC raised its stake in Intuitive Surgical by 253.3% during the first quarter. Global Financial Private Client LLC now owns 53 shares of the medical equipment provider's stock worth $26,000 after acquiring an additional 38 shares in the last quarter. Finally, Elite Financial Inc. bought a new position in shares of Intuitive Surgical during the first quarter valued at $26,000. 83.64% of the stock is currently owned by institutional investors and hedge funds.

Intuitive Surgical Company Profile

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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