Is Intuitive Surgical Inc. (ISRG) positioned for future growth?

Intuitive Surgical Inc. (NASDAQ: ISRG) stock jumped 0.34% on Thursday to $303.74 against a previous-day closing price of $302.70. With 1.35 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.8 million shares. During the session, the Medical Instruments & Supplies company that operates in wider Healthcare sector, reached to the highest price of $305.86 whereas the lowest price it dropped to was $299.81. The 52-week range on ISRG shows that it touched its highest point at $358.07 and its lowest point at $180.07 during that stretch. It currently has a 1-year price target of $367.95. Beta for the stock currently stands at 1.30.

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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 ISRG was up-trending over the past week, with a rise of 2.19%, but this was down by -0.94% over a month. Three-month performance dropped to -5.98% while six-month performance rose 29.70%. The stock gained 43.68% in the past year, while it has gained 14.47% so far this year. A look at the trailing 12-month EPS for ISRG yields 3.98 with Next year EPS estimates of 6.51. For the next quarter, that number is 1.42. This implies an EPS growth rate of -21.60% for this year and 16.52% for next year. EPS is expected to grow by 15.74% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 5.20%.

Float and Shares Shorts:

At present, 350.90 million ISRG shares are outstanding with a float of 349.56 million shares on hand for trading. On Aug 30, 2023, short shares totaled 2.99 million, which was 0.85% higher than short shares on Jul 30, 2023. In addition to Dr. Gary S. Guthart Ph.D. as the firm’s CEO & Director, Mr. David J. Rosa serves as its Pres.

Institutional Ownership:

Through their ownership of 87.58% of ISRG’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 51.51% of ISRG, in contrast to 34.74% held by mutual funds. Shares owned by individuals account for 1.39%. As the largest shareholder in ISRG with 8.03% of the stake, The Vanguard Group, Inc. holds 28,211,455 shares worth 28,211,455. A second-largest stockholder of ISRG, T. Rowe Price Associates, Inc., holds 18,544,358 shares, controlling over 5.28% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in ISRG, holding 16,962,733 shares or 4.83% stake. With a 3.11% stake in ISRG, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 10,912,488 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.39% of ISRG stock, is the second-largest Mutual Fund holder. It holds 8,391,898 shares valued at 2.72 billion. Invesco QQQ Trust holds 1.70% of the stake in ISRG, owning 5,983,941 shares worth 1.94 billion.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, ISRG reported revenue of $1.52B and operating income of $397.60M. The EBITDA in the recently reported quarter was $397.60M and diluted EPS was $0.85.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ISRG since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With ISRG analysts setting a high price target of $400.00 and a low target of $315.00, the average target price over the next 12 months is $367.91. Based on these targets, ISRG could surge 31.69% to reach the target high and rise by 3.71% to reach the target low. Reaching the average price target will result in a growth of 21.13% 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.

Summary of Insider Activity:

Insiders traded ISRG stock several times over the past three months with 9 Buys and 12 Sells. In these transactions, 72,035 shares were bought while 75,809 shares were sold. The number of buy transactions has increased to 107 while that of sell transactions has risen to 112 over the past year. The total number of shares bought during that period was 494,878 while 393,082 shares were sold.

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