Tactile Systems Technology (NASDAQ:TCMD) Downgraded to "Buy" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Tactile Systems Technology from “strong buy” to “buy,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $38.40.
• The company reported quarterly EPS of $0.34, beating the $0.14 consensus estimate, while revenue of $85.70 million was broadly in line with forecasts.
• Institutional investors own 83.43% of the stock, with BlackRock initiating a stake valued at approximately $56.7 million; CEO Sheri Louise Dodd also sold shares to cover tax withholding obligations.

Tactile Systems Technology (NASDAQ:TCMD - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a note issued to investors on Saturday.

Several other research firms have also issued reports on TCMD. B. Riley Financial upgraded shares of Tactile Systems Technology from a "neutral" rating to a "buy" rating and raised their target price for the stock from $32.00 to $36.00 in a report on Thursday, May 7th. BTIG Research reduced their price objective on shares of Tactile Systems Technology from $40.00 to $39.00 and set a "buy" rating on the stock in a research report on Tuesday. Finally, Weiss Ratings reissued a "hold (c-)" rating on shares of Tactile Systems Technology in a research report on Monday, August 3rd. Four research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $38.40.

Tactile Systems Technology Stock Performance

NASDAQ:TCMD opened at $24.20 on Friday. The stock's fifty day moving average is $28.08 and its 200 day moving average is $26.92. Tactile Systems Technology has a fifty-two week low of $12.25 and a fifty-two week high of $37.77. The firm has a market capitalization of $548.13 million, a PE ratio of 22.41 and a beta of 0.81.

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

Insiders Place Their Bets

In other news, CEO Sheri Louise Dodd sold 10,978 shares of Tactile Systems Technology stock in a transaction on Monday, August 10th. The stock was sold at an average price of $29.44, for a total transaction of $323,192.32. Following the completion of the sale, the chief executive officer directly owned 232,907 shares in the company, valued at approximately $6,856,782.08. This trade represents a 4.50% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 2.10% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in TCMD. BlackRock Inc. bought a new stake in Tactile Systems Technology during the 2nd quarter valued at about $56,733,000. Vanguard Group Inc. grew its stake in Tactile Systems Technology by 4.8% in the 4th quarter. Vanguard Group Inc. now owns 1,651,170 shares of the company's stock worth $47,884,000 after acquiring an additional 76,198 shares in the last quarter. Paradigm Capital Management Inc. NY grew its stake in Tactile Systems Technology by 5.9% in the 2nd quarter. Paradigm Capital Management Inc. NY now owns 1,618,600 shares of the company's stock worth $16,413,000 after acquiring an additional 89,600 shares in the last quarter. Dimensional Fund Advisors LP increased its position in shares of Tactile Systems Technology by 2.1% during the third quarter. Dimensional Fund Advisors LP now owns 1,191,207 shares of the company's stock worth $16,486,000 after acquiring an additional 24,001 shares during the period. Finally, Federated Hermes Inc. increased its position in shares of Tactile Systems Technology by 19.4% during the fourth quarter. Federated Hermes Inc. now owns 645,408 shares of the company's stock worth $18,717,000 after acquiring an additional 104,648 shares during the period. 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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