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

Key Points

• Transcat shares briefly fell below their 200-day moving average of $83.81, reaching $83.50 before recovering to $85.95.
• Analyst sentiment remains cautious: the stock has an average “Reduce” rating, with two Holds and one Sell, despite a $95 consensus price target.
• Transcat beat quarterly expectations, reporting $0.51 in EPS versus $0.38 expected and revenue of $92.95 million versus $86.55 million; institutional investors own 98.34% of the shares.

Transcat, Inc. (NASDAQ:TRNS - Get Free Report) shares passed below its 200-day moving average during trading on Monday. The stock has a 200-day moving average of $83.81 and traded as low as $83.50. Transcat shares last traded at $85.95, with a volume of 208,380 shares traded.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on TRNS. Northland Securities downgraded Transcat from an "outperform" rating to a "market perform" rating and set a $95.00 price target for the company. in a research note on Wednesday, August 5th. Wall Street Zen raised Transcat from a "sell" rating to a "hold" rating in a research note on Sunday, June 28th. Finally, Weiss Ratings restated a "sell (d+)" rating on shares of Transcat in a report on Tuesday, August 25th. Two investment 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 stock currently has an average rating of "Reduce" and a consensus price target of $95.00.

Transcat Stock Down 2.0%

The company has a current ratio of 2.49, a quick ratio of 2.11 and a debt-to-equity ratio of 0.36. The stock has a market capitalization of $807.07 million, a PE ratio of 232.30 and a beta of 0.68. The stock's fifty day simple moving average is $88.03 and its 200-day simple moving average is $83.81.

Transcat (NASDAQ:TRNS - Get Free Report) last announced its earnings results on Tuesday, August 4th. The scientific and technical instruments company reported $0.51 EPS for the quarter, beating the consensus estimate of $0.38 by $0.13. Transcat had a net margin of 0.99% and a return on equity of 5.56%. The company had revenue of $92.95 million during the quarter, compared to the consensus estimate of $86.55 million. As a group, sell-side analysts forecast that Transcat, Inc. will post 1.74 EPS for the current fiscal year.

Insider Transactions at Transcat

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

Institutional Trading of Transcat

Hedge funds have recently bought and sold shares of the business. Integrated Wealth Concepts LLC bought a new position in Transcat in the 2nd quarter valued at $32,000. Persistent Asset Partners Ltd purchased a new stake in shares of Transcat during the 2nd quarter valued at $52,000. Canada Pension Plan Investment Board bought a new stake in shares of Transcat during the 2nd quarter worth $204,000. The Manufacturers Life Insurance Company bought a new stake in shares of Transcat during the 2nd quarter worth $226,000. Finally, Arizona State Retirement System bought a new stake in shares of Transcat during the 2nd quarter worth $233,000. 98.34% of the stock is currently owned by institutional investors.

About Transcat

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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