Procept BioRobotics Plunges 9.6%, What’s Next for This Surgical Robotics Contender?

Summary
• CEO Reza Zadno retires, succeeded by Larry Wood of Edwards Lifesciences
• Q2 2025 revenue jumps 48% to $79.2M, yet shares fall 9.6%
• Analysts project 43.7% upside potential despite 52W low near $47

Procept BioRobotics (PRCT) has plunged nearly 10% intraday amid a leadership transition and mixed market signals. While Q2 revenue surged 48% to $79.2 million, insider selling and technical indicators suggest heightened volatility. Traders now weigh the stock’s potential rebound against bearish momentum and sector dynamics.

Leadership Transition and Insider Selling Trigger Sharp Decline
The 9.6% intraday drop in PRCT follows the announcement of CEO Reza Zadno’s retirement and Larry Wood’s appointment as successor. Despite Q2 revenue outperforming expectations, the stock’s decline coincided with insider sales of 100,000 shares by directors, totaling $6.27 million. Analysts attribute the selloff to market skepticism around leadership continuity and concerns over the company’s -34.49 P/E ratio. Additionally, the stock’s price action—trading near its 52W low—reflects broader investor caution amid high leverage ratios and negative earnings.

Medical Devices Sector Splits as Intuitive Surgical Rises
While PRCT tumbles, the broader medical devices sector shows divergence. Intuitive Surgical (ISRG), the sector’s bellwether, rose 0.94% intraday, reflecting continued demand for surgical robotics. PRCT’s decline, however, contrasts with peers benefiting from stable leadership and positive cash flow. The sector’s mixed performance underscores investor focus on earnings sustainability and management stability.

Options Playbook: High-Leverage Puts and Calls for Volatility Play
• 200-day MA: $69.15 (far above) • RSI: 52.17 (neutral) • MACD: 0.0029 (bullish) • Bollinger Bands: 56.14–59.86 • 52W Range: $47.04–$103.81

PRCT’s technicals suggest a volatile but range-bound near-term outlook. Key levels to watch: the 200D MA ($69.15) as a long-term resistance and the 52W low ($47.04) as critical support. High-implied-volatility options offer leverage for directional bets. Two top options from the chain:

• PRCT20250815P52.5 (Put): Strike $52.5, Expiry 2025-08-15, IV 73.04%, Leverage 15.62%, Delta -0.432, Theta -0.032, Gamma 0.041, Turnover 17,628
- IV (Implied Volatility): High volatility expectation
- Leverage (Leverage Ratio): Strong price sensitivity
- Delta (Delta): Moderate downside bias
- Theta (Time Decay): Moderate decay
- Gamma (Gamma): High sensitivity to price moves
- Turnover (Turnover): High liquidity for entry/exit

• PRCT20250815C52.5 (Call): Strike $52.5, Expiry 2025-08-15, IV 99.19%, Leverage 9.66%, Delta 0.572, Theta -0.165, Gamma 0.030, Turnover 1,030
- IV: Extremely high volatility expectation
- Leverage: Moderate price sensitivity
- Delta: Strong upside bias
- Theta: High time decay
- Gamma: Moderate sensitivity to price moves
- Turnover: Moderate liquidity

Under a 5% downside scenario (targeting $49.85), the PRCT20250815P52.5 put would yield a 14.58% payoff, while the PRCT20250815C52.5 call would expire worthless. The put’s high gamma and moderate delta make it ideal for short-term volatility plays, while the call’s high IV offers potential for rapid premium erosion if the stock stabilizes. Aggressive bulls may consider PRCT20250815C52.5 into a bounce above $52.50, while bears should watch for a breakdown below $52.50 to trigger PRCT20250815P52.5.

Backtest PROCEPT BioRobotics Stock Performance
The backtest of PRCT's performance after a -10% intraday plunge shows favorable results, with win rates increasing significantly across various time frames. The 3-Day win rate is 48.11%, the 10-Day win rate is 50.00%, and the 30-Day win rate is 56.13%. Additionally, the maximum return during the backtest period was 8.41%, which occurred on day 59, indicating that PRCT has a strong recovery potential following a substantial intraday decline.

Short-Term Volatility Likely; Watch Key Levels and Sector Leaders
PRCT’s 9.6% decline reflects market uncertainty around leadership and profitability, but technicals and analyst ratings suggest a potential rebound. The 200D MA at $69.15 remains a long-term target, though near-term support at $52.50 is critical. Traders should monitor the sector leader Intuitive Surgical (ISRG), up 0.94%, for broader industry sentiment. For PRCT, a break below $52.50 could accelerate bearish momentum, while a rebound above $58.00 might reignite bullish momentum. Position sizing and stop-loss placement near key levels are essential given the stock’s high volatility.