Establishment Labs (NASDAQ:ESTA) Shares Gap Up Following Strong Earnings

Establishment Labs Holdings Inc. (NASDAQ:ESTA)’s share price gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $51.25, but opened at $54.39. Establishment Labs shares last traded at $56.00, with a volume of 29,448 shares.

The company reported ($0.58) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.65) by $0.07. Establishment Labs had a negative return on equity of 357.81% and a negative net margin of 47.53%. The firm had revenue of $37.17 million for the quarter, compared to the consensus estimate of $35.61 million. During the same period in the prior year, the company posted ($0.48) earnings per share. The company’s quarterly revenue was down 20.1% on a year-over-year basis.

Analysts Set New Price Targets

ESTA has been the topic of several research reports. JPMorgan Chase & Co. raised their target price on Establishment Labs from $46.00 to $53.00 and gave the stock an “overweight” rating in a research report on Thursday, February 29th. Mizuho increased their price target on shares of Establishment Labs from $50.00 to $65.00 and gave the stock a “buy” rating in a research report on Monday, April 1st. Stephens reissued an “overweight” rating and set a $47.00 price objective on shares of Establishment Labs in a research report on Thursday, January 11th. Finally, Citigroup raised their target price on Establishment Labs from $49.00 to $60.00 and gave the stock a “buy” rating in a report on Wednesday, April 3rd. Five analysts have rated the stock with a buy rating, According to data from MarketBeat.com, the stock currently has an average rating of “Buy” and a consensus target price of $55.00.

Hedge Funds Weigh In On Establishment Labs

Several large investors have recently made changes to their positions in the business. Brown Advisory Inc. raised its stake in Establishment Labs by 63.9% during the 4th quarter. Brown Advisory Inc. now owns 2,428,792 shares of the company’s stock valued at $62,881,000 after purchasing an additional 946,612 shares during the period. Cowen AND Company LLC lifted its holdings in shares of Establishment Labs by 18.1% in the third quarter. Cowen AND Company LLC now owns 1,141,172 shares of the company’s stock worth $55,997,000 after buying an additional 175,000 shares in the last quarter. Fourth Sail Capital LP bought a new position in shares of Establishment Labs during the fourth quarter worth $14,473,000. William Blair Investment Management LLC purchased a new position in Establishment Labs during the first quarter valued at $21,415,000. Finally, Kornitzer Capital Management Inc. KS lifted its stake in Establishment Labs by 26.3% in the 4th quarter. Kornitzer Capital Management Inc. KS now owns 389,160 shares of the company’s stock worth $10,075,000 after purchasing an additional 81,155 shares in the last quarter. 72.91% of the stock is currently owned by hedge funds and other institutional investors.

Establishment Labs Price Performance

The company has a debt-to-equity ratio of 10.26, a quick ratio of 1.67 and a current ratio of 3.06. The firm’s fifty day simple moving average is $50.27 and its 200 day simple moving average is $37.38. The firm has a market cap of $1.55 billion, a P/E ratio of -18.84 and a beta of 1.23.

About Establishment Labs

Establishment Labs Holdings Inc, a medical technology company, manufactures and markets medical devices for aesthetic and reconstructive plastic surgery. The company primarily offers silicone gel-filled breast implants under the Motiva Implants brand. It also provides Motiva Ergonomix and Motiva Ergonomix2 gravity sensitive round soft silicone-gel-filled breast implants; and Motiva Flora Tissue Expander, a breast tissue expander.