TransMedics Group (NASDAQ:TMDX) Shares Climb 4.2% - Time to Buy?

Key Points

• TransMedics shares rose 4.2% to $83.66, though trading volume was 62% below the average session volume.
• Analyst sentiment is mixed: the stock has a consensus “Hold” rating from 13 analysts, with an average price target of $121.00. Recent ratings ranged from Barclays’ “Overweight” with a $120 target to Zacks Research’s “Strong Sell.”
• The company’s latest quarter showed 20.7% year-over-year revenue growth to $189.95 million, exceeding estimates, but adjusted earnings of $0.44 per share missed expectations of $0.50. Institutional investors own nearly all outstanding shares, at 99.67%.

TransMedics Group, Inc. (NASDAQ:TMDX - Get Free Report) was up 4.2% during trading on Wednesday. The company traded as high as $83.76 and last traded at $83.6560. 387,111 shares changed hands during mid-day trading, a decline of 62% from the average session volume of 1,006,125 shares. The stock had previously closed at $80.28.

Analyst Upgrades and Downgrades

TMDX has been the topic of several research reports. Needham & Company LLC restated a "buy" rating on shares of TransMedics Group in a research note on Friday, September 11th. Barclays began coverage on TransMedics Group in a report on Wednesday. They issued an "overweight" rating and a $120.00 price target on the stock. Stifel Nicolaus lifted their target price on TransMedics Group from $75.00 to $80.00 and gave the company a "hold" rating in a research note on Thursday, June 18th. Piper Sandler reiterated an "overweight" rating and issued a $100.00 target price (down from $120.00) on shares of TransMedics Group in a report on Wednesday, August 5th. Finally, Zacks Research lowered shares of TransMedics Group from a "hold" rating to a "strong sell" rating in a research report on Monday, July 6th. Six analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, TransMedics Group has a consensus rating of "Hold" and an average price target of $121.00.

TransMedics Group Stock Performance

The company has a debt-to-equity ratio of 1.62, a quick ratio of 6.07 and a current ratio of 6.62. The stock has a market cap of $2.85 billion, a PE ratio of 21.23, a price-to-earnings-growth ratio of 1.14 and a beta of 1.94. The firm has a fifty day moving average price of $85.86 and a 200 day moving average price of $84.45.

TransMedics Group (NASDAQ:TMDX - Get Free Report) last announced its earnings results on Tuesday, August 4th. The company reported $0.44 earnings per share for the quarter, missing the consensus estimate of $0.50 by ($0.06). TransMedics Group had a return on equity of 15.88% and a net margin of 22.69%.The business had revenue of $189.95 million for the quarter, compared to analysts' expectations of $184.00 million. During the same quarter last year, the firm earned $0.92 earnings per share. The firm's quarterly revenue was up 20.7% compared to the same quarter last year. Research analysts forecast that TransMedics Group, Inc. will post 1.46 earnings per share for the current fiscal year.

Insider Activity at TransMedics Group

In related news, Director David Weill bought 1,336 shares of the stock in a transaction that occurred on Friday, September 11th. The stock was bought at an average cost of $81.63 per share, for a total transaction of $109,057.68. Following the purchase, the director directly owned 16,392 shares of the company's stock, valued at approximately $1,338,078.96. This trade represents a 8.87% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. 6.90% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Goldman Sachs Group Inc. grew its position in TransMedics Group by 50.1% during the fourth quarter. Goldman Sachs Group Inc. now owns 965,931 shares of the company's stock valued at $117,506,000 after buying an additional 322,353 shares during the period. Braidwell LP grew its position in shares of TransMedics Group by 85.1% during the 2nd quarter. Braidwell LP now owns 609,715 shares of the company's stock valued at $40,497,000 after acquiring an additional 280,324 shares during the period. Deutsche Bank AG purchased a new position in shares of TransMedics Group in the 2nd quarter valued at about $14,415,000. Bank of New York Mellon Corp acquired a new position in TransMedics Group in the 2nd quarter worth about $12,869,000. Finally, Legal & General Group Plc acquired a new position in TransMedics Group in the 2nd quarter worth about $5,286,000. Hedge funds and other institutional investors own 99.67% of the company's stock.

TransMedics Group Company Profile

TransMedics Group, Inc is a medical technology company that develops organ transplant systems designed to preserve and assess donated organs outside the body before transplantation. Its primary platform, the Organ Care System (OCS), uses warm perfusion technology to circulate oxygenated blood and nutrients through organs, helping maintain organ function during transport and potentially expanding the pool of organs available for transplant.

The company offers OCS solutions for heart, lung and liver transplantation.

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