Tactile Systems Technology, Inc. (NASDAQ:TCMD) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• Analyst sentiment is moderately positive: Six brokerages rate Tactile Systems Technology “Moderate Buy,” with four buys and two holds. The average 12-month price target is $38.40, well above the reported share price of $22.02.
• Quarterly results exceeded expectations: The company reported adjusted earnings of $0.34 per share versus the $0.14 consensus estimate, while revenue of $85.7 million was slightly above forecasts.
• Institutional ownership remains high: Institutional investors own 83.43% of the stock, with several firms increasing their positions. CEO Sheri Dodd sold shares to cover tax withholding tied to vested equity awards.

Shares of Tactile Systems Technology, Inc. (NASDAQ:TCMD - Get Free Report) have been given a consensus rating of "Moderate Buy" by the six brokerages that are covering the firm, MarketBeat reports. Two analysts have rated the stock with a hold rating and four have issued a buy rating on the company. The average twelve-month target price among analysts that have issued ratings on the stock in the last year is $38.40.

A number of analysts recently weighed in on TCMD shares. Weiss Ratings lowered shares of Tactile Systems Technology from a "hold (c+)" rating to a "hold (c)" rating in a research report on Monday, August 31st. Wall Street Zen lowered Tactile Systems Technology from a "strong-buy" rating to a "buy" rating in a research report on Saturday, August 15th. Finally, BTIG Research reduced their price target on Tactile Systems Technology from $40.00 to $39.00 and set a "buy" rating on the stock in a report on Tuesday, August 11th.

Insider Buying and Selling

In other news, CEO Sheri Dodd sold 10,978 shares of Tactile Systems Technology stock in a transaction on 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 sale, the chief executive officer directly owned 232,907 shares in the company, valued at approximately $6,856,782.08. This trade represents a 4.50% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 2.10% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the stock. First Light Asset Management LLC purchased a new stake in Tactile Systems Technology in the 2nd quarter valued at about $13,775,000. Engineers Gate Manager LP purchased a new position in shares of Tactile Systems Technology during the second quarter worth approximately $400,000. IFP Advisors Inc raised its stake in shares of Tactile Systems Technology by 24.3% during the second quarter. IFP Advisors Inc now owns 3,606 shares of the company's stock valued at $107,000 after acquiring an additional 704 shares in the last quarter. Amundi raised its stake in shares of Tactile Systems Technology by 9.2% during the second quarter. Amundi now owns 19,761 shares of the company's stock valued at $588,000 after acquiring an additional 1,659 shares in the last quarter. Finally, California State Teachers Retirement System boosted its holdings in shares of Tactile Systems Technology by 671.9% in the second quarter. California State Teachers Retirement System now owns 9,232 shares of the company's stock valued at $275,000 after purchasing an additional 8,036 shares during the period. Hedge funds and other institutional investors own 83.43% of the company's stock.

Tactile Systems Technology Trading Up 1.3%

Shares of Tactile Systems Technology stock opened at $22.02 on Thursday. The stock has a 50 day moving average of $26.51 and a 200 day moving average of $26.25. Tactile Systems Technology has a 12 month low of $13.14 and a 12 month high of $37.77. The firm has a market cap of $498.75 million, a PE ratio of 20.39 and a beta of 0.80.

Tactile Systems Technology (NASDAQ:TCMD - Get Free Report) last released its quarterly earnings data on Monday, August 10th. The company reported $0.34 EPS for the quarter, beating the consensus estimate of $0.14 by $0.20. Tactile Systems Technology had a net margin of 7.10% and a return on equity of 11.49%. The business had revenue of $85.70 million during the quarter, compared to analyst estimates of $85.52 million. As a group, equities research analysts forecast that Tactile Systems Technology will post 1.1 earnings per share for the current fiscal year.

About Tactile Systems Technology

Tactile Systems Technology, Inc, headquartered in Plymouth, Minnesota, is a medical device company specializing in the design, manufacture and marketing of home-use pneumatic compression therapy systems for the treatment of lymphedema and other chronic edema-related conditions. Using proprietary software and patented pump technologies, the company's platforms are designed to improve patient outcomes through sequential pressure treatment that promotes fluid mobilization and enhanced lymphatic function.

At the core of Tactile Systems' product portfolio is the Flexitouch® system, a programmable pneumatic pump and garment system approved for home use, and the Aria® device, which features an intuitive touchscreen interface and advanced garment design.

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