Why is Glaukos stock sliding today?

Glaukos shares slipped 10.8% in early trading, trading at $153.57 following a surge of roughly 6.6% on Wednesday. This decline follows the company's Q3 earnings announcement and a keratoconus awareness campaign starring NBA player Stephen Curry. The sharp drop signals classic mean-reversion dynamics, as the stock has more than doubled in the past year and encountered selling pressure at elevated levels.

Insider selling has also added to the bearish sentiment, with executives, including the President & COO, CFO, and Chief Development Officer, collectively selling over $16.5 million in stock over the past 90 days. Bearish options activity was evident, with puts comprising roughly 80% of total contract volume. Additionally, Glaukos entered into a licensing agreement with RevOpsis Therapeutics to develop and commercialize RO-104, a biologic for retinal diseases.

However, the stock's current negative earnings profile and overall market conditions, with the S&P 500, Nasdaq, and Dow all down for the day, may be weighing on investor confidence. Despite these factors, 13 analysts still maintain Buy ratings on Glaukos, with a consensus price target of $180.54, indicating the stock is trading at a discount to this average target.