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.” Across analysts, the stock retains a “Moderate Buy” consensus and an average price target of $36.80.
• The company reported quarterly EPS of $0.31, beating the $0.28 consensus estimate, while revenue of $91.86 million came in just below the $91.99 million forecast.
• Shares opened at $26.03 and were reported down 1.3%; they have traded between $20.53 and $37.77 over the past 12 months.

Tactile Systems Technology (NASDAQ:TCMD - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research note issued on Sunday, Wall Street Zen reports.

TCMD has been the topic of several other research reports. Weiss Ratings cut shares of Tactile Systems Technology from a "hold (c+)" rating to a "hold (c)" rating in a research report on Tuesday. BTIG Research lowered their target price on shares of Tactile Systems Technology from $35.00 to $31.00 and set a "buy" rating on the stock in a report on Tuesday, November 3rd. Four investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $36.80.

Tactile Systems Technology Trading Down 1.3%

NASDAQ:TCMD opened at $26.03 on Friday. Tactile Systems Technology has a 12-month low of $20.53 and a 12-month high of $37.77. The stock has a 50-day moving average price of $22.93 and a 200 day moving average price of $25.82. The stock has a market capitalization of $581.51 million, a P/E ratio of 25.27 and a beta of 0.95.

Tactile Systems Technology (NASDAQ:TCMD - Get Free Report) last issued its earnings results on Monday, November 2nd. The company reported $0.31 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.28 by $0.03. Tactile Systems Technology had a return on equity of 10.73% and a net margin of 6.68%. The company had revenue of $91.86 million for the quarter, compared to the consensus estimate of $91.99 million. On average, research analysts predict that Tactile Systems Technology will post 1.11 earnings per share for the current fiscal year.

Insider Activity

In other news, CEO Sheri Dodd sold 10,978 shares of the firm's stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $29.44, for a total transaction of $323,192.32. Following the completion of the transaction, the chief executive officer owned 232,907 shares in the company, valued at $6,856,782.08. This trade represents a 4.50% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Laura G. King sold 4,800 shares of the firm's stock in a transaction dated Tuesday, November 3rd. The shares were sold at an average price of $25.00, for a total value of $120,000.00. Following the transaction, the director owned 20,769 shares of the company's stock, valued at approximately $519,225. The trade was a 18.77% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.10% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Tactile Systems Technology

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Allspring Global Investments Holdings LLC lifted its position in Tactile Systems Technology by 4.1% during the third quarter. Allspring Global Investments Holdings LLC now owns 19,071 shares of the company's stock valued at $425,000 after purchasing an additional 749 shares during the last quarter. State of Wyoming increased its holdings in shares of Tactile Systems Technology by 68.1% in the 3rd quarter. State of Wyoming now owns 18,941 shares of the company's stock worth $422,000 after buying an additional 7,670 shares during the last quarter. Inspire Investing LLC bought a new stake in shares of Tactile Systems Technology in the 3rd quarter worth about $2,456,000. Pinnacle Associates Ltd. increased its holdings in shares of Tactile Systems Technology by 0.3% in the 3rd quarter. Pinnacle Associates Ltd. now owns 327,967 shares of the company's stock worth $7,310,000 after buying an additional 850 shares during the last quarter. Finally, State of Alaska Department of Revenue increased its holdings in shares of Tactile Systems Technology by 18.9% in the 3rd quarter. State of Alaska Department of Revenue now owns 7,113 shares of the company's stock worth $158,000 after buying an additional 1,132 shares during the last quarter. 83.43% of the stock is owned by institutional investors.

Tactile Systems Technology Company Profile

Tactile Systems Technology, doing business as Tactile Medical, develops and provides medical devices and services for people with chronic swelling and related conditions. The company focuses primarily on lymphedema and chronic venous insufficiency, conditions that can cause persistent fluid buildup in the limbs and trunk.

Its principal products include advanced pneumatic compression devices, such as the Flexitouch Plus system for the treatment of lymphedema and the Entre Plus system for home treatment of lymphedema and chronic venous insufficiency.

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