SUNNYVALE, Calif.—Gary S. Guthart, CEO of Intuitive Surgical Inc . (NASDAQ:ISRG), sold shares worth approximately $13.1 million in the company on October 30, according to a recent SEC filing. The transactions involved 18,151 shares sold at a weighted average price of $511.6343 and 3,720 shares at $510.5179. An additional 3,720 shares were sold at $510.7534.
Alongside these sales, Guthart exercised options to acquire 25,200 shares at a price of $59.2278 per share. Following these transactions, Guthart retains direct ownership of 19,920 shares and indirect ownership of 1,191,144 shares through a trust. The transactions were conducted under a pre-arranged trading plan compliant with SEC Rule 10b5-1.
In other recent news, Intuitive Surgical reported robust third-quarter results, surpassing expectations in key areas such as revenue, system placements, and procedure growth. The company's revenue reached $2 billion, marking a 17% year-over-year increase, largely driven by an 18% growth in DaVinci procedures. Piper Sandler, RBC Capital Markets, and Mizuho Securities have all adjusted their price targets for Intuitive Surgical following these impressive results. The company also reported a significant increase in the placement of its da Vinci surgical systems, with 110 new systems placed in the third quarter. In addition, Intuitive Surgical has revised its full-year 2024 procedure growth forecast to 16.0-17.0%, reflecting a positive outlook. The company is also preparing for a broad launch of its next-generation system, the da Vinci 5 (DV5), anticipated in mid-2025. Despite pricing pressures in China, the company is focusing on expanding the Ion system internationally, particularly in China and Europe. These are the recent developments for Intuitive Surgical.
InvestingPro Insights
Intuitive Surgical's recent stock performance and financial metrics provide additional context to CEO Gary S. Guthart's recent share transactions. According to InvestingPro data, the company's stock has shown remarkable strength, with a 95.93% price total return over the past year and a 52.29% return year-to-date. This robust performance aligns with the timing of Guthart's stock sales, which occurred near the 52-week high, as the stock is currently trading at 96.42% of its 52-week high.
The company's financial health appears solid, with revenue growth of 14.83% over the last twelve months and a strong gross profit margin of 66.98%. These figures suggest that Intuitive Surgical is maintaining its market position and profitability in the competitive medical devices sector.
InvestingPro Tips highlight that 16 analysts have revised their earnings upwards for the upcoming period, indicating positive sentiment about the company's near-term prospects. Additionally, the company's liquid assets exceed short-term obligations, suggesting a strong balance sheet position.
It's worth noting that Intuitive Surgical is trading at a high P/E ratio of 79.63, which is relatively high compared to its near-term earnings growth. This valuation metric, along with the company's high EBIT and EBITDA multiples, suggests that investors are pricing in significant future growth expectations.
For investors seeking a more comprehensive analysis, InvestingPro offers 17 additional tips for Intuitive Surgical, providing a deeper dive into the company's financial health and market position.
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