Transcat (NASDAQ:TRNS) Stock Breaks Below 200 Day Moving Average - Time to Sell?

Key Points

• Transcat shares fell below their 200-day moving average, trading as low as $79.30 versus the $85.11 average, with the latest price at $80.35.
• Analyst sentiment is cautious: the consensus rating is “Reduce”, based on two Hold ratings and one Sell rating, with a $95 average price target.
• Despite the stock weakness, Transcat exceeded quarterly expectations, reporting $0.51 in EPS and $92.95 million in revenue; institutional investors own a substantial 98.34% of its shares.

Shares of Transcat, Inc. (NASDAQ:TRNS - Get Free Report) crossed below its two hundred day moving average during trading on Friday. The stock has a two hundred day moving average of $85.11 and traded as low as $79.30. Transcat shares last traded at $80.35, with a volume of 105,166 shares traded.

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on TRNS shares. Northland Securities lowered Transcat from an "outperform" rating to a "market perform" rating and set a $95.00 target price on the stock. in a research report on Wednesday, August 5th. Weiss Ratings reissued a "sell (d+)" rating on shares of Transcat in a report on Tuesday, August 25th. Finally, Wall Street Zen raised shares of Transcat from a "sell" rating to a "hold" rating in a report on Sunday, June 28th. Two analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Reduce" and a consensus price target of $95.00.

Transcat Price Performance

The company has a debt-to-equity ratio of 0.36, a quick ratio of 2.11 and a current ratio of 2.49. The stock has a market capitalization of $754.49 million, a PE ratio of 217.16 and a beta of 0.66. The stock's 50 day moving average is $87.70 and its two-hundred day moving average is $85.11.

Transcat (NASDAQ:TRNS - Get Free Report) last posted its quarterly earnings data 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. Transcat had a return on equity of 5.56% and a net margin of 0.99%. The company had revenue of $92.95 million for the quarter, compared to analysts' expectations of $86.55 million. On average, equities analysts anticipate that Transcat, Inc. will post 1.74 EPS for the current fiscal year.

Insider Activity at Transcat

In other news, Director Christopher Gillette sold 504 shares of Transcat stock in a transaction that occurred 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 directly owned 200 shares of the company's stock, valued at $18,846. The trade was a 71.59% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Craig D. Cairns purchased 1,050 shares of the company's stock in a transaction that occurred on Thursday, August 6th. The shares were purchased at an average price of $93.97 per share, with a total value of $98,668.50. Following the completion of the transaction, the director directly owned 1,480 shares of the company's stock, valued at $139,075.60. This represents a 244.19% increase in their position. The disclosure for this purchase is available in the SEC filing. Company insiders own 1.80% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new stake in shares of Transcat during the second quarter worth $67,445,000. Barrow Hanley Mewhinney & Strauss LLC purchased a new position in shares of Transcat in the second quarter worth about $37,106,000. Wellington Management Group LLP purchased a new position in shares of Transcat in the second quarter worth about $29,409,000. Dimensional Fund Advisors LP lifted its stake in shares of Transcat by 3.7% in the first quarter. Dimensional Fund Advisors LP now owns 262,033 shares of the scientific and technical instruments company's stock worth $19,244,000 after buying an additional 9,266 shares in the last quarter. Finally, Bamco Inc. NY acquired a new position in Transcat during the second quarter worth about $17,649,000. Hedge funds and other institutional investors own 98.34% of the company's stock.

Transcat Company Profile

Transcat, Inc provides calibration, testing, repair, and compliance services for test and measurement equipment. Its offerings help organizations maintain the accuracy, reliability, and regulatory compliance of instruments used in manufacturing, laboratory, pharmaceutical, biotechnology, medical device, aerospace, defense, and other highly regulated environments.

The company provides both onsite and laboratory-based calibration services, along with equipment repair, validation, asset management, and related technical support.

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