CooperCompanies

CooperCompanies is a US medical-device manufacturer with two main divisions: CooperVision, one of the world’s largest contact-lens producers, and CooperSurgical, focused on fertility and women’s health. It sells in more than 130 countries, combining a relatively predictable contact-lens business with a faster-growing operation in assisted reproduction and women’s health.

COO had one of the strongest insider signals in the Radar: three directors invested approximately US$1.88 million after a substantial share-price decline, and the price remained close to their purchases.

The problems were technical and operational. Cooper remained profitable and its valuation had become more interesting, but growth had slowed, CooperVision was weak and the chart had not convincingly confirmed the end of the downtrend. The result was 8.6, below 9+ qualification.

Rosebrough Jr. bought approximately US$542,000. Paul Keel bought approximately US$250,000. Lawrence Kurzius bought approximately US$1.09 million.

The combined amount was approximately US$1.88 million, at prices around US$53–55.

Three directors bought after a steep decline, with the share still close to their transaction prices. Valuation had improved, but slower CooperVision growth and the lack of a confirmed bottom prevented 9+ qualification.

Cooper is a global medical-device company operating through CooperVision and CooperSurgical.

It remained profitable, with positive GAAP and trailing-twelve-month earnings, sound cash generation and share repurchases.

Growth was part of the difficulty: revenue growth was slowing and CooperVision had shown weakness. An exceptional tax benefit also contributed to the recent improvement in reported profit, so that improvement should not all be treated as recurring operating growth.

Trailing P/E was approximately 19x and forward P/E near 12x.

The available PEG figure was too inconsistent to receive significant weight in the assessment.

The supplied research did not identify a sufficiently large recent block of discretionary insider sales to offset the current buying cluster. This supported the Insider History score of 9.2.

1. CooperVision

Stabilisation in this division can improve confidence in the growth outlook.

2. Operating execution

Operating improvements and a response to activist pressure could change the business trajectory.

3. Buybacks

Repurchasing shares at low prices can create value if earnings stabilise.

1. Slowdown

Slower operating growth can continue to pressure earnings expectations.

2. CooperVision

Further deterioration would weaken a central part of the business.

3. Strategic changes

Poor execution can delay recovery and prevent expected benefits.

The daily chart was the main obstacle: a downtrend, a price below the principal moving averages and a recent fall on heavy volume.

There was still no confirmed bottom. Insider purchases and a lower valuation alone did not establish that selling pressure had ended.

The monthly chart was also weak. The share had lost important long-term levels and remained below the main moving averages.

Stabilisation around US$52–55 followed by a sustained recovery of US$58–60 would begin to improve the reading.

Monthly reading: the trend remained weak; holding US$52–55 and recovering US$58–60 would be signs of improvement.

COO · NASDAQ · USD. Ordinary share.

COO shows why insider buying starts an assessment rather than completing it. The cluster was highly relevant, the price remained close to the insiders' purchases and valuation had improved substantially.

However, a cheap share bought by directors can remain cheap. Without technical confirmation and with slowing operating growth, the method assigned 8.6 — Radar, below 9+ qualification.