What a $22 Million Bet on STAAR Surgical Signals After Third-Quarter Earnings and a 15% Market Lag
Key Points
London-based Sand Grove Capital Management acquired 829,123 shares of STAAR Surgical Company in the third quarter.
The position was worth about $22.28 million at quarter-end.
This new stake accounts for 10.88% of fund AUM, placing it outside Sand Grove’s top five holdings.
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London-based Sand Grove Capital Management took a new stake in STAAR Surgical Company (NASDAQ:STAA), adding 829,123 shares valued at ~$22.28 million, according to November 14, 2025, SEC filings.
What Happened
According to a filing with the Securities and Exchange Commission dated November 14, Sand Grove Capital Management LLP established a new position in STAAR Surgical Company (NASDAQ:STAA). The firm reported holding 829,123 shares at quarter-end, with a reported market value of $22.28 million. The addition made STAAR Surgical a significant holding within Sand Grove’s 13F portfolio, which totaled $204.67 million across 12 positions.
What Else to Know
Sand Grove's new position in STAAR Surgical represents 10.88% of its 13F assets as of September 30.
Top five holdings following the filing:
- NYSE:TXNM: $33.54 million (16.4% of AUM)
- NYSE:K: $26.73 million (13.1% of AUM)
- NYSE:NSC: $25.35 million (12.4% of AUM)
- NASDAQ:MRUS: $22.54 million (11.0% of AUM)
- NASDAQ:EA: $22.44 million (11.0% of AUM)
As of Tuesday, STAA shares were priced at $23.93, down 1% over the past year and well underperforming the S&P 500, which is up about 15% in the same period.
Company Overview
| Metric | Value |
|---|---|
| Price (as of Tuesday) | $23.93 |
| Market capitalization | $1.18 billion |
| Revenue (TTM) | $230.59 million |
| Net income (TTM) | ($96.37 million) |
Company Snapshot
- STAAR Surgical Company offers implantable lenses for vision correction, including the Visian ICL family and preloaded silicone cataract intraocular lenses, as well as injector systems and related instruments.
- The company generates revenue through the design, manufacture, and direct sale of ophthalmic surgical products to healthcare providers and distributors globally.
- It serves ophthalmic surgeons, vision and surgical centers, hospitals, government facilities, and international distributors, with a strong presence in the United States, Asia, and Europe.
STAAR Surgical Company is a healthcare technology firm specializing in implantable vision correction lenses and surgical delivery systems. With a global footprint and a focus on innovation, the company enables ophthalmologists to address a range of visual disorders through advanced intraocular devices.
Its business model centers on proprietary product development and direct sales to clinical professionals, positioning STAAR Surgical as a key player in the growing market for refractive and cataract surgery solutions.
Foolish Take
STAAR Surgical has spent the past year looking stuck on the surface, yet its latest quarter shows a business that is structurally leaner and quietly more profitable. Third-quarter revenue rose 6.9% year over year to $94.7 million, while gross margin surged to 82.2%, up from 77.3% a year ago, driven by cost reductions and favorable revenue recognition tied to prior China shipments. Operating income, meanwhile, more than tripled year over year, even as reported net income dipped modestly due in part to higher taxes.
Just as important, cash remains strong at roughly $193 million with no outstanding debt, giving the company flexibility as it navigates uneven demand in China and continues to expand internationally. At roughly 11% of reported assets, this bet suggests confidence that earnings normalization, not headline growth, will drive returns from here. For patient investors, the story is less about short-term optics and more about whether operational strength can help drive the stock's performance in the long-term.
Glossary
13F: A quarterly SEC filing by institutional investment managers disclosing their equity holdings.
AUM: Assets Under Management; the total market value of investments managed by a fund or firm.
Position: The amount of a particular security or investment held by an individual or institution.
Trailing twelve months (TTM): The 12-month period ending with the most recent quarterly report.
Quarter-end: The last day of a fiscal quarter, used for financial reporting and analysis.
Market value: The total value of a holding, calculated as the current price multiplied by the number of shares owned.
Stake: The ownership interest or investment held in a company by an individual or institution.
Filing: An official document submitted to a regulatory authority, such as the SEC, providing required disclosures.
Proprietary product: A product developed and owned by a company, often protected by patents or trade secrets.
Direct sales: Selling products directly to customers without intermediaries or distributors.
Ophthalmic: Relating to the medical care and treatment of the eyes.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends TXNM Energy, Inc. The Motley Fool recommends Electronic Arts. The Motley Fool has a disclosure policy.
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