STAA

Major Shareholder Pours $21.5 Million Into STAAR Surgical ($STAA) During Four-Month Stock Collapse

04/08/2025 00:35

Major shareholder Broadwood Partners, LP has initiated a significant buying spree in STAAR Surgical ($STAA), investing over $21.5 million to acquire shares following the company's stock price collapse. STAAR Surgical specializes in ophthalmic implants, particularly known for its Implantable Collamer Lens (ICL) products that correct myopia. The company's stock has plummeted approximately 68% from around $47 in mid-2024 to as low as $15 by February 2025. The insider buying began in earnest on February 12, 2025, coinciding with an acceleration in the stock's decline. According to SEC filings, Broadwood Partners purchased approximately 411,430 shares at an average price of $7.61 over a three-day period from February 12-14, 2025, representing an investment of about $3 million. Notably, the buying activity intensified in subsequent months. From late February through mid-March 2025, Broadwood Partners acquired an additional 663,761 shares, followed by approximately 877,000 more shares from late March through early April. In total, Broadwood Partners has purchased about 2.5 million shares over the past four months, with a total investment of approximately $21.5 million. This substantial buying follows STAAR Surgical's disappointing financial performance in 2024. The company reported revenue of $313.90 million but posted an operating loss of $12.61 million, a significant deterioration from its operating profit of $28.10 million in 2023. Footnotes in the insider trading disclosures indicate that the reported securities are directly owned by Broadwood Partners, LP, and may be indirectly beneficially owned by Broadwood Capital, Inc. and Neal C. Bradsher. Each reporting person disclaims beneficial ownership of the reported securities except to the extent of their pecuniary interest. Some transactions explicitly state that securities are directly owned by Neal C. Bradsher, revealing a complex ownership structure behind these purchases. Nevertheless, it's clear that the same major shareholder group has been aggressively increasing its stake while STAAR Surgical's stock trades near historic lows. Despite its challenges, STAAR Surgical maintains a strong cash position with over $230 million in cash and short-term investments, limiting immediate financial risks. This may be part of what Broadwood Partners is betting on for long-term value. Medical device industry analysts note that STAAR's core ICL implant products still have growth potential. However, recent growth deceleration and profitability issues continue to weigh on the stock price in the short term. Broadwood Partners' substantial buying often serves as a positive signal for long-term investors. Major shareholders typically have deeper access to company information, and such concentrated purchasing suggests they believe the current stock price undervalues the company's long-term prospects. However, investors should note that Broadwood Partners' average purchase prices are below current trading levels. Despite the massive buying activity, the stock has remained in the $15-18 range, indicating limited short-term price impact from these purchases. The upcoming quarterly results will serve as a critical milestone to determine whether STAAR Surgical can return to a growth trajectory. While the continued insider buying demonstrates confidence in the company's long-term outlook, stock recovery may remain challenging without improved financial performance.

You can receive notifications when news is published.