Staar Surgical (STAA) stock soared on Tuesday after the implantable lenses company reached an agreement with eye care company Alcon (ALC). This will have Alcon acquire all outstanding shares of STAA stock for $28 per share in cash. This represents a 51% premium to the stock’s prior closing price and has a total equity value of approximately $1.5 billion.
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Stephen Farrell, CEO of Staar Surgical, said, “As a significantly larger company, Alcon has the capabilities and scale to accelerate EVO ICL adoption and bring our innovative technology to more surgeons and patients worldwide.”
Staar Surgical and Alcon expect the deal to close within six to 12 months. It already has the support of both companies’ boards of directors. Alcon also expects the deal to be accretive to its earnings in the second year after the deal is complete.
Staar Surgical Stock Movement Today
Staar Surgical stock was up 44.73% in pre-market trading on Tuesday, following a 4.11% rally yesterday. However, the shares have fallen 23.88% year-to-date and 51.2% over the past 12 months. Today’s news came with heavy trading, as some 8 million shares changed hands, compared to a three-month daily average of about 678,000 units.
Is Staar Surgical Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Staar Surgical is Hold, based on two Buy, two Hold, and a single Sell rating over the past three months. With that comes an average STAA price target of $19.29, representing a potential 4.33% upside for the shares.
