Cooper Shares Signal a Bullish Reversal

A notable shift is underway for Cooper's stock as the fiscal year concludes, with both technical indicators and fundamental developments pointing toward renewed investor optimism. The market is responding to a confluence of positive chart patterns and substantial insider buying activity, suggesting a meaningful change in sentiment.

The company's recent financial performance and strategic initiatives form a solid foundation for the current momentum. Cooper reported fourth-quarter non-GAAP earnings per share of $1.15, surpassing the consensus estimate of $1.11. This was driven by a 5% revenue increase to $1,065.2 million.

Concurrently, management has initiated a formal strategic review to explore avenues for enhancing shareholder value, including potential mergers, joint ventures, or divestitures. This review coincides with a broader reorganization that resulted in charges of approximately $89 million in Q4 but is projected to yield annual pre-tax savings of $50 million starting in fiscal 2026. The leadership's outlook for FY 2026 is notably confident, forecasting total revenue between $4.30 billion and $4.34 billion and adjusted EPS in the range of $4.45 to $4.60, exceeding prior analyst expectations and indicating sustained organic growth in its core Vision and Surgery segments.

Insider Conviction Adds to Positive Sentiment

The confidence displayed by the company's leadership has become a focal point for the market. Recent months have seen significant share purchases by several members of the board of directors and executive team. Notably, one director acquired over 1,000 shares on December 19, 2025, following another director's purchase of 2,000 shares earlier that same week.

Should investors sell immediately? Or is it worth buying Cooper?

Over the past twelve months, insider activity reveals a clear pattern: seven recorded buys and zero sells. Transactions of this nature are widely interpreted as a strong signal of management's belief in the intrinsic value of the company and the success of its ongoing strategic shifts. Such high-level buying often acts as a catalyst, encouraging further investment from institutional and private investors.

Technical Picture Confirms the Breakout

From a chart perspective, the stock's structure has transitioned decisively from a consolidation phase into a confirmed uptrend. Shares have outperformed the broader market significantly over the past four weeks, posting gains of roughly 16%. This upward move is supported by the formation of a "Golden Cross," a technical event where the 50-day moving average crosses above the 200-day moving average, which chart analysts view as a signal for a longer-term trend reversal.

Market liquidity remains robust, with recent trading volumes reaching 1.9 times the daily average. This surge in activity implies that institutional investors are likely repositioning their portfolios following the latest financial disclosures. The establishment of new support levels above previous resistance zones further confirms that the current demand for shares is structural rather than speculative.

Capital Allocation Strategy Focuses on Returns

Management's commitment to returning capital to shareholders is underscored by an aggressive allocation strategy. The share repurchase program was expanded by $1.0 billion in late 2025, bringing the total authorization to $2.0 billion, with approximately $1.0 billion still available for future buybacks. This move, combined with a stated goal to accelerate cash generation, highlights a clear focus on shareholder returns. The company is targeting free cash flow exceeding $2.2 billion for the period spanning 2026 through 2028.