Cooper Companies (NASDAQ:COO) Shares Gap Up Following Better-Than-Expected Earnings

Shares of The Cooper Companies, Inc. (NASDAQ:COO) gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $77.03, but opened at $89.66. Cooper Companies shares last traded at $83.2810, with a volume of 1,556,324 shares changing hands.

The medical device company reported $1.15 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.11 by $0.04. Cooper Companies had a net margin of 9.16% and a return on equity of 10.01%. The company had revenue of $1.07 billion during the quarter, compared to analysts’ expectations of $1.06 billion. During the same quarter in the prior year, the company earned $1.04 EPS. The firm’s revenue was up 4.6% on a year-over-year basis. Cooper Companies has set its FY 2026 guidance at 4.450-4.600 EPS and its Q1 2026 guidance at 1.020-1.040 EPS.

Cooper Companies announced that its board has initiated a stock repurchase plan on Wednesday, September 17th that allows the company to buyback $2.00 billion in shares. This buyback authorization allows the medical device company to repurchase up to 15.4% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s leadership believes its stock is undervalued.

Wall Street Analyst Weigh In

Several research firms have recently commented on COO. Robert W. Baird lifted their price objective on Cooper Companies from $85.00 to $98.00 and gave the stock an “outperform” rating in a report on Friday. Wells Fargo & Company raised their price target on Cooper Companies from $72.00 to $82.00 and gave the stock an “equal weight” rating in a research report on Friday. Morgan Stanley set a $76.00 price objective on Cooper Companies and gave the company an “equal weight” rating in a research report on Thursday, August 28th. KeyCorp reaffirmed a “sector weight” rating on shares of Cooper Companies in a research note on Friday. Finally, Stifel Nicolaus set a $95.00 price target on shares of Cooper Companies and gave the company a “buy” rating in a report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Cooper Companies currently has an average rating of “Moderate Buy” and an average price target of $90.31.

Insider Buying and Selling

In related news, Director Lawrence Erik Kurzius bought 2,000 shares of the company’s stock in a transaction dated Monday, September 29th. The stock was purchased at an average cost of $68.39 per share, with a total value of $136,780.00. Following the transaction, the director owned 5,777 shares in the company, valued at approximately $395,089.03. This trade represents a 52.95% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 1.98% of the company’s stock.

Hedge Funds Weigh In On Cooper Companies

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Allworth Financial LP lifted its holdings in Cooper Companies by 23.9% in the third quarter. Allworth Financial LP now owns 1,188 shares of the medical device company’s stock worth $81,000 after buying an additional 229 shares during the period. IFP Advisors Inc grew its holdings in shares of Cooper Companies by 2,647.8% during the 3rd quarter. IFP Advisors Inc now owns 632 shares of the medical device company’s stock worth $43,000 after acquiring an additional 609 shares during the period. Swiss Life Asset Management Ltd raised its position in shares of Cooper Companies by 63.9% in the 3rd quarter. Swiss Life Asset Management Ltd now owns 49,409 shares of the medical device company’s stock worth $3,387,000 after acquiring an additional 19,264 shares in the last quarter. CIBC Bancorp USA Inc. bought a new position in shares of Cooper Companies in the 3rd quarter worth approximately $1,887,000. Finally, Bell Investment Advisors Inc lifted its stake in shares of Cooper Companies by 106.3% in the 3rd quarter. Bell Investment Advisors Inc now owns 425 shares of the medical device company’s stock valued at $29,000 after purchasing an additional 219 shares during the period. Hedge funds and other institutional investors own 24.39% of the company’s stock.

Cooper Companies Trading Up 5.7%

The company has a current ratio of 2.12, a quick ratio of 1.24 and a debt-to-equity ratio of 0.29. The company has a market cap of $16.18 billion, a PE ratio of 43.30, a PEG ratio of 2.00 and a beta of 1.05. The stock has a 50 day moving average price of $72.29 and a 200 day moving average price of $71.67.

Cooper Companies Company Profile

The Cooper Companies, Inc, together with its subsidiaries, develops, manufactures, and markets contact lens wearers. The company operates in two segments, CooperVision and CooperSurgical. The CooperVision segment provides spherical lense, including lenses that correct near and farsightedness; and toric and multifocal lenses comprising lenses correcting vision challenges, such as astigmatism, presbyopia, and myopia in the Americas, Europe, Middle East, Africa, and Asia Pacific.