Broadwood Partners, a major holder at STAAR Surgical Company (STAA), recently added 226,553 shares. The buy increased the fund’s position by 1 percent, and came to a total cost of $6.48 million.
This marks the first insider activity since December, when a company director bought 850 shares for a cost of $26,129. Broadwood Partners was active acquiring shares throughout last year as well. The last insider sale occurred in March 2023.
Overall, STAAR insiders own 0.7 percent of shares, and institutions own the rest of the outstanding float.
The producer of implantable eye lenses saw its share price get cut in half over the last year. That’s about in-line with the 53 percent drop in overall earnings for STAAR over the same timeframe.
However, the company has remained profitable, and revenues rose by 6 percent last year.
Action to take: STAAR shares are richly valued at 46 times forward earnings, and without a return to faster growth, the long-term downtrend in shares may continue. The company does not pay a dividend at present.
For traders, shares have been in a very short-term uptrend, but it looks like to falter.
With more downside likely, a trade like the March $30 puts, last going for about $2.20, could see mid-to-high double-digit returns in the coming months.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.