Tactile Systems Technology, Inc. (NASDAQ:TCMD) Given Consensus Recommendation of "Moderate Buy" by Analysts

Key Points

• Analysts give Tactile Systems Technology a “Moderate Buy” consensus: Four of six covering analysts recommend buying the stock, while two rate it a hold. The average 1-year price target is $38.40 versus a recent opening price of $24.20.
• Quarterly results exceeded expectations: The company reported adjusted earnings of $0.34 per share, beating the $0.14 consensus estimate, while revenue of $85.70 million was roughly in line with forecasts.
• Institutional interest remains significant: Several large investors initiated positions during the second quarter, and institutions collectively own 83.43% of the company. The CEO also sold shares to cover tax obligations tied to vested equity awards.

Tactile Systems Technology, Inc. (NASDAQ:TCMD - Get Free Report) has been given a consensus recommendation of "Moderate Buy" by the six brokerages that are currently covering the firm, Marketbeat Ratings reports. Two analysts have rated the stock with a hold rating and four have given a buy rating to the company. The average 1-year price objective among brokers that have covered the stock in the last year is $38.40.

TCMD has been the subject of a number of research analyst reports. BTIG Research dropped their price objective on shares of Tactile Systems Technology from $40.00 to $39.00 and set a "buy" rating for the company in a report on Tuesday, August 11th. Wall Street Zen downgraded Tactile Systems Technology from a "strong-buy" rating to a "buy" rating in a research report on Saturday. B. Riley Financial upgraded Tactile Systems Technology from a "neutral" rating to a "buy" rating and raised their price target for the company from $32.00 to $36.00 in a research report on Thursday, May 7th. Finally, Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Tactile Systems Technology in a research note on Monday, August 3rd.

Tactile Systems Technology Price Performance

Shares of TCMD opened at $24.20 on Friday. The firm's 50 day simple moving average is $28.08 and its 200 day simple moving average is $26.92. The company has a market capitalization of $548.13 million, a P/E ratio of 22.41 and a beta of 0.81. Tactile Systems Technology has a 1-year low of $12.25 and a 1-year high of $37.77.

Tactile Systems Technology (NASDAQ:TCMD - Get Free Report) last released its quarterly earnings results on Monday, August 10th. The company reported $0.34 EPS for the quarter, topping analysts' consensus estimates of $0.14 by $0.20. The business had revenue of $85.70 million during the quarter, compared to analysts' expectations of $85.52 million. Tactile Systems Technology had a net margin of 7.10% and a return on equity of 11.49%. On average, equities analysts anticipate that Tactile Systems Technology will post 1.07 earnings per share for the current year.

Insider Buying and Selling at Tactile Systems Technology

In related news, CEO Sheri Louise Dodd sold 10,978 shares of the firm's stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $29.44, for a total transaction of $323,192.32. Following the transaction, the chief executive officer directly owned 232,907 shares of the company's stock, valued at approximately $6,856,782.08. This trade represents a 4.50% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Corporate insiders own 2.10% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Man Group plc purchased a new position in shares of Tactile Systems Technology during the second quarter worth approximately $1,597,000. Jupiter Topco LLC purchased a new stake in shares of Tactile Systems Technology in the 2nd quarter valued at $11,831,000. Canada Pension Plan Investment Board purchased a new stake in shares of Tactile Systems Technology in the 2nd quarter valued at $319,000. Legal & General Group Plc bought a new position in shares of Tactile Systems Technology during the 2nd quarter valued at $182,000. Finally, Paradigm Capital Management Inc. NY bought a new position in shares of Tactile Systems Technology during the 2nd quarter valued at $6,826,000. 83.43% of the stock is currently owned by institutional investors.

About Tactile Systems Technology

Tactile Systems Technology, Inc, headquartered in Plymouth, Minnesota, is a medical device company specializing in the design, manufacture and marketing of home-use pneumatic compression therapy systems for the treatment of lymphedema and other chronic edema-related conditions. Using proprietary software and patented pump technologies, the company's platforms are designed to improve patient outcomes through sequential pressure treatment that promotes fluid mobilization and enhanced lymphatic function.

At the core of Tactile Systems' product portfolio is the Flexitouch® system, a programmable pneumatic pump and garment system approved for home use, and the Aria® device, which features an intuitive touchscreen interface and advanced garment design.

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