On June 14, 2023, Executive Vice President and Chief Product Officer Robert Desantis sold 2,443 shares of Intuitive Surgical Inc (ISRG, Financial), a leading provider of robotic-assisted surgical systems. The company's flagship product, the da Vinci Surgical System, enables surgeons to perform minimally invasive procedures with enhanced precision and control. Intuitive Surgical has a strong presence in the fields of urology, gynecology, general surgery, and other surgical specialties.
Over the past year, Robert Desantis has sold a total of 14,666 shares and purchased 0 shares. This recent transaction marks a continuation of his selling trend. The insider transaction history for Intuitive Surgical Inc shows that there have been 0 insider buys in total over the past year, while there have been 28 insider sells during the same period.
Shares of Intuitive Surgical Inc were trading at $325 apiece on the day of Robert Desantis's recent sale, giving the stock a market cap of $115.03 billion. The price-earnings ratio is 89.69, which is higher than the industry median of 29.66 and higher than the company's historical median price-earnings ratio.
With a price of $325 and a GuruFocus Value of $344.27, Intuitive Surgical Inc has a price-to-GF-Value ratio of 0.94. This means the stock is fairly valued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus that is calculated based on the following three factors:
- Historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at.
- A GuruFocus adjustment factor based on the company's past returns and growth.
- Future estimates of business performance from Morningstar analysts.
It is important to consider the relationship between insider selling and stock price performance. While insider selling can sometimes be a bearish signal, it is not always the case. Executives may sell shares for various reasons, such as personal financial needs or portfolio diversification. In the case of Intuitive Surgical Inc, the stock has shown strong performance over the past year, with a one-year return of 47.34% as of June 14, 2023.
Investors should also take note of the company's financial health and growth prospects. Intuitive Surgical Inc has a strong balance sheet, with a debt-to-equity ratio of 0.00, indicating that the company has no debt. The company's revenue has grown at a compound annual growth rate (CAGR) of 15.60% over the past five years, while its earnings per share (EPS) have grown at a CAGR of 20.10% during the same period.
In conclusion, while EVP & Chief Product Officer Robert Desantis's recent sale of 2,443 shares of Intuitive Surgical Inc may raise some concerns, it is essential to consider the stock's valuation, financial health, and growth prospects. The stock is currently fairly valued based on its GF Value, and the company has demonstrated strong financial performance and growth potential. Investors should continue to monitor insider transactions and other relevant factors to make informed decisions about their investments in Intuitive Surgical Inc.
