TransMedics Group (NASDAQ:TMDX) Shares Down 5.7% - Here's What Happened

Key Points

• TransMedics shares fell 5.7% to about $72.17, with trading volume roughly 80% below the average daily level.
• Analyst sentiment is mixed: the stock has a consensus “Hold” rating and a $115.60 average price target, while recent firms lowered targets and Zacks downgraded it to “strong sell.”
• The company’s latest quarterly revenue rose 20.7% year over year to $189.95 million, exceeding estimates, but EPS of $0.44 missed consensus by $0.06. An insider also purchased 1,336 shares, while institutional investors own 99.67% of the stock.

TransMedics Group, Inc. (NASDAQ:TMDX - Get Free Report) shares dropped 5.7% on Friday. The stock traded as low as $71.01 and last traded at $72.1670. 197,648 shares changed hands during mid-day trading, a decline of 80% from the average daily volume of 1,000,373 shares. The stock had previously closed at $76.52.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on TMDX. Needham & Company LLC reiterated a "buy" rating on shares of TransMedics Group in a research report on Friday, September 11th. Weiss Ratings upgraded shares of TransMedics Group from a "hold (c-)" rating to a "hold (c)" rating in a research note on Monday, August 31st. Canaccord Genuity Group dropped their price target on TransMedics Group from $95.00 to $94.00 and set a "buy" rating for the company in a research report on Tuesday. Piper Sandler reissued an "overweight" rating and issued a $100.00 target price (down from $120.00) on shares of TransMedics Group in a research note on Wednesday, August 5th. Finally, Zacks Research lowered TransMedics Group from a "hold" rating to a "strong sell" rating in a research report on Monday, July 6th. Five investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, TransMedics Group currently has a consensus rating of "Hold" and a consensus target price of $115.60.

TransMedics Group Stock Down 6.0%

The company has a quick ratio of 6.07, a current ratio of 6.62 and a debt-to-equity ratio of 1.62. The firm has a market capitalization of $2.49 billion, a PE ratio of 18.47, a price-to-earnings-growth ratio of 1.04 and a beta of 1.94. The company's fifty day simple moving average is $85.81 and its 200 day simple moving average is $82.99.

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

Insider Transactions at TransMedics Group

In other news, Director David Weill purchased 1,336 shares of the company's stock in a transaction on Friday, September 11th. The stock was acquired at an average cost of $81.63 per share, for a total transaction of $109,057.68. Following the completion of the transaction, the director directly owned 16,392 shares in the company, valued at $1,338,078.96. This trade represents a 8.87% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available through the SEC website. Corporate insiders own 6.90% of the company's stock.

Hedge Funds Weigh In On TransMedics Group

Institutional investors have recently added to or reduced their stakes in the company. Annex Advisory Services LLC purchased a new stake in TransMedics Group during the third quarter valued at approximately $1,480,000. GK Wealth Management LLC bought a new position in TransMedics Group in the 3rd quarter valued at $77,000. GAMMA Investing LLC increased its stake in TransMedics Group by 17.3% in the third quarter. GAMMA Investing LLC now owns 1,978 shares of the company's stock worth $165,000 after purchasing an additional 292 shares during the period. Farther Finance Advisors LLC lifted its position in shares of TransMedics Group by 162.6% during the third quarter. Farther Finance Advisors LLC now owns 2,594 shares of the company's stock worth $216,000 after purchasing an additional 1,606 shares during the last quarter. Finally, Plan A Wealth LLC boosted its position in TransMedics Group by 3.9% in the 3rd quarter. Plan A Wealth LLC now owns 5,370 shares of the company's stock valued at $448,000 after buying an additional 203 shares during the period. Hedge funds and other institutional investors own 99.67% of the company's stock.

About TransMedics Group

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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