It makes sense and dollars to buy Cutera Inc. (CUTR) stock

Cutera Inc. (NASDAQ: CUTR) stock jumped 6.26% on Friday to $34.65 against a previous-day closing price of $32.61. With 0.53 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.47 million shares. During the session, the Medical Devices company that operates in wider Healthcare sector, reached to the highest price of $34.98 whereas the lowest price it dropped to was $31.70. The 52-week range on CUTR shows that it touched its highest point at $74.38 and its lowest point at $26.51 during that stretch. It currently has a 1-year price target of $54.40. Beta for the stock currently stands at 1.66.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of CUTR was up-trending over the past week, with a rise of 20.15%, but this was down by -22.08% over a month. Three-month performance dropped to -24.10% while six-month performance fell -18.64%. The stock lost -0.83% in the past year, while it has lost -21.64% so far this year. A look at the trailing 12-month EPS for CUTR yields -4.20 with Next year EPS estimates of -0.48. For the next quarter, that number is -0.27. This implies an EPS growth rate of 107.90% for this year and 53.80% for next year. EPS is expected to grow by 25.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -9.70%.

Float and Shares Shorts:

At present, 19.59 million CUTR shares are outstanding with a float of 19.11 million shares on hand for trading. On Oct 13, 2022, short shares totaled 4.68 million, which was 23.92% higher than short shares on Sep 14, 2022. In addition to Mr. J. Daniel Plants as the firm’s Exec. Chairman, Mr. David H. Mowry serves as its CEO & Director.


Institutional Ownership:

Through their ownership of 133.02% of CUTR’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 83.57% of CUTR, in contrast to 45.61% held by mutual funds. Shares owned by individuals account for 34.16%. As the largest shareholder in CUTR with 12.84% of the stake, BlackRock Fund Advisors holds 2,518,329 shares worth 2,518,329. A second-largest stockholder of CUTR, RTW Investments LP, holds 1,770,400 shares, controlling over 9.03% of the firm’s shares. Millennium Management LLC is the third largest shareholder in CUTR, holding 1,551,447 shares or 7.91% stake. With a 6.72% stake in CUTR, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 1,318,138 shares are owned by the mutual fund manager. The 1290 VT GAMCO Small Company Value, which owns about 3.47% of CUTR stock, is the second-largest Mutual Fund holder. It holds 680,500 shares valued at 30.09 million. Fidelity Strategic Advisers US To holds 2.94% of the stake in CUTR, owning 576,060 shares worth 25.47 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CUTR since 5 analysts follow the stock currently. There are 4 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 1 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With CUTR analysts setting a high price target of $70.00 and a low target of $33.00, the average target price over the next 12 months is $54.40. Based on these targets, CUTR could surge 102.02% to reach the target high and fall by -4.76% to reach the target low. Reaching the average price target will result in a growth of 57.0% from current levels.


EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. CUTR will report FY 2022 earnings on 02/14/2024. Analysts have provided yearly estimates in a range of -$0.83 being high and -$1.52 being low. For CUTR, this leads to a yearly average estimate of -$1.10. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Cutera Inc. surprised analysts by $0.14 when it reported -$0.24 EPS against a consensus estimate of -$0.38. The surprise factor in the prior quarter was -$2.20. Based on analyst estimates, the high estimate for the next quarter is -$0.03 and the low estimate is -$0.73. The average estimate for the next quarter is thus -$0.27.

Summary of Insider Activity:

Insiders traded CUTR stock several times over the past three months with 3 Buys and 11 Sells. In these transactions, 17,566 shares were bought while 13,561 shares were sold. The number of buy transactions has increased to 17 while that of sell transactions has risen to 43 over the past year. The total number of shares bought during that period was 97,855 while 53,588 shares were sold.

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