10% Owner Of Staar Surgical Purchased $1.95M In Stock

It was revealed in a recent SEC filing that BROADWOOD PARTNERS LP, 10% Owner at Staar Surgical STAA made a noteworthy insider purchase on December 19,.

What Happened: In a recent Form 4 filing with the U.S. Securities and Exchange Commission on Thursday, LP increased their investment in Staar Surgical by purchasing 80,200 shares through open-market transactions, signaling confidence in the company's potential. The total transaction value is $1,947,539.

As of Thursday morning, Staar Surgical shares are up by 3.34%, currently priced at $25.07.

Discovering Staar Surgical: A Closer Look

Staar Surgical Co is a manufacturer of lenses. It designs, develops, manufactures, and sells implantable lenses for the eye and delivery systems used to deliver the lenses into the eye. The company also makes lenses that are used in surgery to treat cataracts. The company offers two types of products: Implantable Collamer lenses (ICL) and intraocular lens (IOL). The ICLs are used in refractive surgery and IOLs are used in cataract surgery. The majority of sales are generated from the ophthalmic surgical product segment.

Financial Insights: Staar Surgical

Positive Revenue Trend: Examining Staar Surgical's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 10.31% as of 30 September, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Health Care sector.

Insights into Profitability:

• Gross Margin: The company excels with a remarkable gross margin of 77.31%, indicating superior cost efficiency and profitability compared to its industry peers.

• Earnings per Share (EPS): With an EPS below industry norms, Staar Surgical exhibits below-average bottom-line performance with a current EPS of 0.2.

Debt Management: Staar Surgical's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.09.

Market Valuation:

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 55.03 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

• Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 3.51 as compared to the industry average, the stock might be considered overvalued based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): A high EV/EBITDA ratio of 31.73 reflects market recognition of Staar Surgical's value, positioning it as more highly valued compared to industry peers.

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Exploring the Significance of Insider Trading

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Unlocking the Meaning of Transaction Codes

When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Staar Surgical's Insider Trades.

Insider Buying Alert: Profit from C-Suite Moves

Benzinga Edge reveals every insider trade in real-time. Don't miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.

This article was generated by Benzinga's automated content engine and reviewed by an editor.