Analyst Explains Why They Downgraded Their Hold Rating on Sientra

Maxim Group analyst Anthony Vendetti downgraded Sientra (NASDAQ: SIEN) to Hold today. The company’s shares closed yesterday at $20.19, close to its 52-week high of $20.99.

Vendetti wrote:

“SIEN has had a strong start to 2018. It received approval of its Vesta facility in April, launched its rebranded breast implants, reported a strong first quarter for its MiraDry system, and added an additional $117.7M in combined equity and debt financing in May. Although we remain optimistic in SIEN’s long-term opportunities, the valuation is significantly ahead of peer averages and the stock price has exceeded our 12-month target. As a result, we are downgrading our rating to and removing our $19 price target.”

According to TipRanks.com, Vendetti is a 4-star analyst with an average return of 11.7% and a 59.0% success rate. Vendetti covers the Healthcare sector, focusing on stocks such as Restoration Robotics Inc, Xtant Medical Holdings, and Milestone Scientific.

Sientra has an analyst consensus of Strong Buy, with a price target consensus of $18.67.

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Based on Sientra’s latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $19.42 million. In comparison, last year the company had a GAAP net loss of $11.42 million.

Based on the recent corporate insider activity of 28 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of SIEN in relation to earlier this year.

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Sientra, Inc. operates as a medical aesthetics company, which engages in developing and commercializing plastic surgery implantable devices. Its products include breast implants, breast tissue expanders, silicone scar treatment, and additional tissue expanders. The company was founded by Hani M. Zeini in 2006 and is headquartered in Santa Barbara, CA.