Uncategorized

Intuitive Surgical: Operating Well Even During Challenging Times

I reviewed Intuitive Surgical (ISRG), one of my favorite companies, in early March, suggesting that it could move from the $90 price at the time to $125 by year-end. Well, with a lot of help from the market and what I believe was stellar execution in a very tough environment during Q1, the stock closed at $130 on Friday. As I incorporate the new information into my view regarding the current valuation, I find the stock probably stretched near-term but capable of rising as the year progresses if they are able to exceed current expectations or if the market continues to be more forward-looking than it has been up until recently.

Having followed the company for almost 5 years now, I have to say that Thursday was one of the strangest days ever. First, the company accidentally filed its 8-K early, and the stock plunged initially on what was clearly a headline miss. It traded as low as 106 in the pre-market. As it became clear that there was a special situation impacting reported numbers, the stock rallied sharply and then traded above 130 (still in pre-market!). During the day, it traded between 113 and 127, closing almost unchanged at 118. During the call, as the company announced it was “suspending” certain key elements of its full-year guidance, the stock plunged below 105 briefly before ending the after-hours session near 110. The range on Friday was 114-132, closing at 130 and leaving the stock now up year-to-date. Wow!

Josh Sandberg

Josh Sandberg is the President and CEO of Ortho Spine Partners and sits on several company and industry related Boards. He also is the Creator and Editor of OrthoSpineNews.

Related Articles

Back to top button