March 4, 2013- Intuitive Surgical Inc. (ISRG), the well-known manufacturer of robotic surgical tools, began its recovery of the value of its common stock on Friday on the strength of a stream of positive reports about its performance from industry analysts.
The company received a staggering blow the day before, on Thursday, when news was released that it was being investigated by the United States Food and Drug administration (FDA). That information terrified investors and there was an immediate selloff of Intuitive Surgical stock that resulted in about an eleven percent drop in the value of a single share.
The fears and concerns felt by investors were softened the very next day when analysts sent emails and other notices to their clients that were extremely positive about the company and its short-and-long-term potential.
The result was an immediate turnaround, converting investors from bears to bulls almost instantly. That enabled the company’s stock to recoup much of what it had lost the previous day in heavy trading.
In fact, Intuitive Surgical stock rebounded to such an extent that it recovered about nine percent of what it had lost so that its stock climbed to a price of $53.40.
Its gain for the day was $43.51 per share.