Is Procept BioRobotics Stock a Buy After Investment Company Chicago Capital Scoops Up Nearly 1 Million Shares?

Chicago Capital, LLC significantly increased its position in Procept BioRobotics (PRCT) by nearly one million shares, bringing its total holdings to $55.99 million, despite the stock's 48.57% year-over-year decline and underperformance against the S&P 500. This substantial investment signals Chicago Capital's conviction in Procept BioRobotics' rapid business expansion, highlighted by a 48% year-over-year revenue increase in Q2 and a raised 2025 full-year revenue outlook, which has created an attractive valuation at a price-to-sales ratio of seven.

Analysis

Investment firm Chicago Capital, LLC significantly increased its stake in Procept BioRobotics (PRCT) by nearly 1 million shares, bringing its total holdings to 1,568,845 shares valued at $55.99 million. This substantial accumulation occurred despite PRCT's stock price declining 48.57% year-over-year and underperforming the S&P 500 by 63.63 percentage points as of October 21, 2025. The move suggests a strong conviction in PRCT's long-term potential amidst recent stock volatility.

Chicago Capital's bullish stance appears driven by Procept BioRobotics' robust operational growth, evidenced by a 48% year-over-year revenue increase to $79.2 million in Q2. The company also raised its 2025 full-year revenue outlook to $325.5 million, representing a 45% increase over 2024, indicating strong forward momentum. This rapid sales expansion, coupled with the stock's price decline, has resulted in an attractive price-to-sales (P/S) ratio of seven.

The stock's prior underperformance was influenced by a January report from Spruce Point Capital Management questioning its technology and safety, alongside the CEO's resignation in July. However, Chicago Capital's significant investment signals a belief that these concerns are outweighed by the company's fundamental business growth and compelling valuation. This positioning suggests a contrarian view, capitalizing on perceived market overreaction to negative news.

Key Decisions for Investors

• Monitor Procept BioRobotics' (PRCT) upcoming earnings reports for continued revenue growth and progress towards its raised 2025 full-year outlook, as sustained operational performance is key to validating Chicago Capital's investment thesis.
• Evaluate PRCT's current valuation, specifically its price-to-sales ratio of seven, against industry peers and historical averages to assess the attractiveness of its entry point given its rapid sales expansion.
• Consider the potential for a contrarian investment, acknowledging the risks highlighted by past reports and leadership changes, but focusing on the company's strong revenue trajectory and institutional conviction.