Eye On Growth: BROADWOOD PARTNERS LP Adds $13.70M Of Staar Surgical Stock To Portfolio

A notable insider purchase on December 1, was reported by BROADWOOD PARTNERS LP, 10% Owner at Staar Surgical STAA, based on the most recent SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Friday showed that LP purchased 434,991 shares of Staar Surgical. The total transaction amounted to $13,703,830.

In the Friday's morning session, Staar Surgical's shares are currently trading at $31.35, experiencing a down of 0.03%.

About Staar Surgical

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 make lenses which are used in surgery that treats cataracts. The company offers products are ICLs used in refractive surgery and IOLs used in cataract surgery. The company generated sales are 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 5.6% as of 30 September, 2023, showcasing a substantial increase in top-line earnings. When compared to others in the Health Care sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Navigating Financial Profits:

• Gross Margin: Achieving a high gross margin of 79.24%, the company performs well in terms of cost management and profitability within its sector.

• Earnings per Share (EPS): With an EPS below industry norms, Staar Surgical exhibits below-average bottom-line performance with a current EPS of 0.1.

Debt Management: Staar Surgical's debt-to-equity ratio is below the industry average at 0.09, reflecting a lower dependency on debt financing and a more conservative financial approach.

Financial Valuation Breakdown:

• Price to Earnings (P/E) Ratio: A higher-than-average P/E ratio of 82.53 suggests caution, as the stock may be overvalued in the eyes of investors.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 5.0, Staar Surgical's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Staar Surgical's EV/EBITDA ratio stands at 57.56, surpassing industry benchmarks. This places the company in a position with a higher-than-average market valuation.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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Illuminating the Importance of Insider Transactions

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Essential Transaction Codes Unveiled

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies 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.

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