Transcat (NASDAQ:TRNS) Shares Pass Below Two Hundred Day Moving Average - Should You Sell?

Key Points

• Transcat shares fell below their 200-day moving average, reaching $82.74 before last trading at $86.00, below the $83.23 long-term average.
• Analyst sentiment is cautious: Northland Securities downgraded the stock to “market perform,” Weiss Ratings maintained a sell rating, and the average rating is “Reduce” with a $95 price target.
• Despite the technical weakness, Transcat exceeded quarterly expectations, reporting $0.51 in EPS versus a $0.38 consensus and revenue of $92.95 million versus $86.55 million expected.

Transcat, Inc. (NASDAQ:TRNS - Get Free Report) crossed below its 200-day moving average during trading on Friday . The stock has a 200-day moving average of $83.23 and traded as low as $82.74. Transcat shares last traded at $86.00, with a volume of 123,760 shares trading hands.

Analyst Ratings Changes

Several research firms have commented on TRNS. Northland Securities cut Transcat from an "outperform" rating to a "market perform" rating and set a $95.00 price target for the company. in a report on Wednesday, August 5th. Weiss Ratings restated a "sell (d+)" rating on shares of Transcat in a research report on Tuesday, August 25th. Finally, Wall Street Zen upgraded Transcat from a "sell" rating to a "hold" rating in a research note on Sunday, June 28th. Two equities research analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Reduce" and an average target price of $95.00.

Transcat Stock Performance

The firm has a market capitalization of $807.54 million, a price-to-earnings ratio of 232.43 and a beta of 0.68. The firm's 50-day moving average price is $88.11 and its two-hundred day moving average price is $83.23. The company has a debt-to-equity ratio of 0.36, a quick ratio of 2.11 and a current ratio of 2.49.

Transcat (NASDAQ:TRNS - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The scientific and technical instruments company reported $0.51 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.38 by $0.13. The firm had revenue of $92.95 million during the quarter, compared to analyst estimates of $86.55 million. Transcat had a net margin of 0.99% and a return on equity of 5.56%. Sell-side analysts predict that Transcat, Inc. will post 1.74 earnings per share for the current year.

Insider Buying and Selling

In related news, Director Christopher Gillette sold 504 shares of the business's stock in a transaction on Friday, August 7th. The stock was sold at an average price of $94.23, for a total value of $47,491.92. Following the sale, the director owned 200 shares of the company's stock, valued at $18,846. The trade was a 71.59% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Craig D. Cairns purchased 1,050 shares of the stock in a transaction on Thursday, August 6th. The stock was bought at an average price of $93.97 per share, for a total transaction of $98,668.50. Following the completion of the transaction, the director directly owned 1,480 shares of the company's stock, valued at approximately $139,075.60. This trade represents a 244.19% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Corporate insiders own 1.80% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in TRNS. Tidal Investments LLC acquired a new stake in shares of Transcat in the 2nd quarter valued at $688,000. Integrated Wealth Concepts LLC acquired a new stake in shares of Transcat during the 2nd quarter worth about $32,000. Squarepoint Ops LLC increased its position in shares of Transcat by 9.0% during the 2nd quarter. Squarepoint Ops LLC now owns 8,794 shares of the scientific and technical instruments company's stock worth $816,000 after purchasing an additional 728 shares in the last quarter. Arizona State Retirement System acquired a new stake in shares of Transcat during the 2nd quarter worth about $233,000. Finally, Corient Private Wealth LP lifted its holdings in Transcat by 9.1% during the 2nd quarter. Corient Private Wealth LP now owns 9,509 shares of the scientific and technical instruments company's stock valued at $882,000 after purchasing an additional 791 shares during the last quarter. 98.34% of the stock is owned by institutional investors.

Transcat Company Profile

Transcat, Inc provides calibration, repair, inspection, and related services for test, measurement, and control instruments. Its offerings help customers maintain the accuracy, reliability, and compliance of equipment used in manufacturing, laboratories, utilities, aerospace and defense, pharmaceuticals, biotechnology, and other regulated or quality-sensitive industries.

The company operates calibration laboratories and service facilities that support a broad range of equipment, including electrical, temperature, pressure, dimensional, mechanical, and process-control instruments.

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