STAAR Surgical (NASDAQ:STAA) Shares Gap Up – Still a Buy?

STAAR Surgical Company (NASDAQ:STAA)’s stock price gapped up before the market opened on Friday. The stock had previously closed at $19.08, but opened at $19.91. STAAR Surgical shares last traded at $20.4180, with a volume of 120,833 shares traded.

STAAR Surgical News Summary

Here are the key news stories impacting STAAR Surgical this week:

• Positive Sentiment: STAAR Surgical’s board authorized a $50 million share-buyback program. Repurchases can support earnings per share by reducing the number of shares outstanding and may signal that management considers the stock undervalued after its substantial decline from the 52-week high. The announcement prompted a favorable market reaction. STAAR Surgical Board Approves $50 Million Share Repurchase Authorization
• Neutral Sentiment: Recent valuation commentary described STAAR Surgical as potentially undervalued following a 4.1% decline on September 23, when shares closed at $19.80. However, the company’s reported price-to-earnings ratio is elevated, so investors may continue to focus on future earnings growth and execution rather than valuation alone. Is STAAR Surgical Co (STAA) a Bargain After 4.1% Drop?
• Neutral Sentiment: A market-data update listed short interest at zero shares as of September 24, with a zero-day days-to-cover ratio. Because the figures conflict with the description of a large increase in short interest, investors should treat this data point cautiously until confirmed by a reliable short-interest report.
• Negative Sentiment: Levi & Korsinsky announced an investigation into possible breaches of fiduciary duties by certain STAAR Surgical officers and directors. The announcement does not establish wrongdoing, but it introduces legal, governance and potential reputational risks that could weigh on the stock. Levi & Korsinsky Shareholder Investigation Announcement

Wall Street Analyst Weigh In

A number of brokerages have weighed in on STAA. Zacks Research cut STAAR Surgical from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, September 2nd. UBS Group set a $28.00 target price on shares of STAAR Surgical in a report on Monday, August 17th. Weiss Ratings upgraded shares of STAAR Surgical from a “sell (d-)” rating to a “sell (d+)” rating in a research report on Thursday, August 13th. Wall Street Zen downgraded shares of STAAR Surgical from a “buy” rating to a “hold” rating in a research report on Saturday, August 1st. Finally, Piper Sandler reiterated a “neutral” rating on shares of STAAR Surgical in a research note on Thursday, August 13th. Three research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, STAAR Surgical has an average rating of “Hold” and a consensus target price of $27.90.

STAAR Surgical Stock Performance

The company has a market cap of $1.01 billion, a price-to-earnings ratio of 289.47 and a beta of 1.21. The company has a 50-day simple moving average of $23.35 and a 200-day simple moving average of $25.09.

STAAR Surgical (NASDAQ:STAA) last posted its quarterly earnings results on Wednesday, August 12th. The medical instruments supplier reported $0.39 EPS for the quarter, beating the consensus estimate of $0.22 by $0.17. STAAR Surgical had a return on equity of 9.05% and a net margin of 1.13%.The business had revenue of $93.53 million during the quarter, compared to analysts’ expectations of $90.60 million. During the same period last year, the firm earned ($0.34) EPS. The company’s quarterly revenue was up 111.1% compared to the same quarter last year. As a group, equities research analysts forecast that STAAR Surgical Company will post 0.39 EPS for the current year.

Institutional Investors Weigh In On STAAR Surgical

Several institutional investors have recently made changes to their positions in STAA. Broadwood Capital Inc. increased its position in shares of STAAR Surgical by 11.1% in the fourth quarter. Broadwood Capital Inc. now owns 15,019,491 shares of the medical instruments supplier’s stock valued at $346,800,000 after buying an additional 1,500,000 shares in the last quarter. Magnetar Financial LLC boosted its position in shares of STAAR Surgical by 105.3% in the 4th quarter. Magnetar Financial LLC now owns 2,472,390 shares of the medical instruments supplier’s stock worth $57,087,000 after buying an additional 1,268,019 shares in the last quarter. American Capital Management Inc. purchased a new stake in shares of STAAR Surgical in the 2nd quarter worth about $24,291,000. Dimensional Fund Advisors LP grew its stake in STAAR Surgical by 39.1% in the 1st quarter. Dimensional Fund Advisors LP now owns 820,782 shares of the medical instruments supplier’s stock valued at $15,348,000 after acquiring an additional 230,582 shares during the last quarter. Finally, Bank of New York Mellon Corp acquired a new stake in STAAR Surgical in the 2nd quarter valued at about $6,578,000. 96.70% of the stock is currently owned by hedge funds and other institutional investors.

About STAAR Surgical

STAAR Surgical Company, together with its subsidiaries, designs, develops, manufactures, markets, and sells implantable lenses for the eye, and companion delivery systems to deliver the lenses into the eye. The company provides implantable Collamer lens product family (ICLs) to treat visual disorders, such as myopia, hyperopia, astigmatism, and presbyopia. It markets its products to health care providers, including ophthalmic surgeons, vision and surgical centers, hospitals, government facilities, and distributors, as well as products are primarily used by ophthalmologists.