Tactile Systems Technology (NASDAQ:TCMD) Cut to Buy at Wall Street Zen

Key Points

• Wall Street Zen downgraded Tactile Systems Technology from “strong buy” to “buy.” The stock retains a “Moderate Buy” consensus rating from analysts, with an average price target of $37.60.
• TCMD shares opened at $22.52, below their 50-day and 200-day moving averages, and have traded between $14.44 and $37.77 over the past year. The company’s latest quarterly results exceeded expectations, with EPS of $0.34 versus the $0.14 consensus estimate.
• Institutional ownership stands at 83.43%. Several major investors, including BlackRock, Bank of New York Mellon, and First Light Asset Management, recently initiated or expanded positions, while CEO Sheri Dodd sold shares to cover tax withholding obligations.

Tactile Systems Technology (NASDAQ:TCMD - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research report issued to clients and investors on Saturday, Wall Street Zen reports.

TCMD has been the subject of a number of other research reports. Weiss Ratings upgraded shares of Tactile Systems Technology from a "hold (c)" rating to a "hold (c+)" rating in a research note on Tuesday. BTIG Research cut their price target on shares of Tactile Systems Technology from $39.00 to $35.00 and set a "buy" rating on the stock in a research note on Monday, October 12th. Four equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, Tactile Systems Technology currently has an average rating of "Moderate Buy" and a consensus price target of $37.60.

Tactile Systems Technology Trading Down 3.3%

Shares of TCMD opened at $22.52 on Friday. The firm has a 50-day moving average price of $22.90 and a 200 day moving average price of $25.20. Tactile Systems Technology has a 12-month low of $14.44 and a 12-month high of $37.77. The firm has a market capitalization of $510.08 million, a P/E ratio of 21.57 and a beta of 0.82.

Tactile Systems Technology (NASDAQ:TCMD - Get Free Report) last issued its quarterly earnings data on Monday, August 10th. The company reported $0.34 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.14 by $0.20. Tactile Systems Technology had a return on equity of 11.49% and a net margin of 7.10%. The firm had revenue of $85.70 million during the quarter, compared to the consensus estimate of $85.52 million. Equities research analysts predict that Tactile Systems Technology will post 1.10 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CEO Sheri Dodd sold 10,978 shares of the company's stock in a transaction on Monday, August 10th. The shares were sold at an average price of $29.44, for a total transaction of $323,192.32. Following the transaction, the chief executive officer directly owned 232,907 shares of the company's stock, valued at $6,856,782.08. This represents a 4.50% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 2.10% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Tactile Systems Technology

Large investors have recently bought and sold shares of the stock. Bank of New York Mellon Corp acquired a new position in Tactile Systems Technology in the second quarter valued at $4,561,000. Empowered Funds LLC acquired a new position in shares of Tactile Systems Technology in the 2nd quarter valued at $3,607,000. BlackRock Inc. purchased a new stake in shares of Tactile Systems Technology during the 2nd quarter valued at $56,733,000. Deutsche Bank AG acquired a new position in Tactile Systems Technology in the second quarter valued at $5,145,000. Finally, First Light Asset Management LLC purchased a new position in shares of Tactile Systems Technology in the 2nd quarter worth about $13,775,000. Institutional investors and hedge funds own 83.43% of the company's stock.

About Tactile Systems Technology

Tactile Systems Technology, Inc, doing business as Tactile Medical, is a medical technology company focused on developing, manufacturing and distributing devices for people with chronic swelling and respiratory conditions. Its products are intended for use in the home and are commonly prescribed by health care professionals as part of ongoing disease-management programs.

The company's core products include the Flexitouch pneumatic compression system, designed to support the treatment of lymphedema and related conditions, and the Entre system, which provides pneumatic compression therapy for the upper and lower extremities.

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