Tactile Systems Technology (NASDAQ:TCMD) Stock Passes Below 50 Day Moving Average - Should You Sell?

Key Points

• Stock technicals: Tactile Systems slipped below its 50‑day moving average, trading as low as $24.74 and last at $24.96 versus a 50‑day of $26.94 and 200‑day of $25.57.
• Analyst outlook: The consensus rating is "Moderate Buy" with an average price target of $37.40, and several recent upgrades pushing targets into the $38–$42 range.
• Fundamentals and flows: The company beat the quarter (EPS $0.46 vs $0.44; revenue $103.6M vs $93.8M), yet insiders sold ~50,137 shares in the past 90 days while institutional ownership remains high at 83.43%.

Tactile Systems Technology, Inc. (NASDAQ:TCMD - Get Free Report)'s stock price passed below its 50-day moving average during trading on Wednesday . The stock has a 50-day moving average of $26.94 and traded as low as $24.74. Tactile Systems Technology shares last traded at $24.96, with a volume of 266,117 shares.

Analysts Set New Price Targets

Several brokerages recently commented on TCMD. BTIG Research boosted their target price on Tactile Systems Technology from $36.00 to $38.00 and gave the stock a "buy" rating in a report on Wednesday, February 18th. B. Riley Financial boosted their target price on Tactile Systems Technology from $16.00 to $32.00 and gave the stock a "neutral" rating in a report on Wednesday, February 18th. Raymond James Financial set a $35.00 target price on Tactile Systems Technology in a report on Monday, January 5th. Piper Sandler boosted their price target on shares of Tactile Systems Technology from $35.00 to $42.00 and gave the stock an "overweight" rating in a research report on Wednesday, February 18th. Finally, Lake Street Capital set a $40.00 price target on shares of Tactile Systems Technology and gave the stock a "buy" rating in a research report on Wednesday, February 18th. One equities research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $37.40.

Tactile Systems Technology Stock Up 0.6%

The stock has a market capitalization of $567.84 million, a P/E ratio of 30.07 and a beta of 0.99. The firm's 50-day simple moving average is $26.94 and its 200 day simple moving average is $25.57.

Tactile Systems Technology (NASDAQ:TCMD - Get Free Report) last posted its quarterly earnings results on Tuesday, February 17th. The company reported $0.46 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.44 by $0.02. The company had revenue of $103.59 million for the quarter, compared to analysts' expectations of $93.80 million. Tactile Systems Technology had a return on equity of 9.26% and a net margin of 5.79%. As a group, equities analysts anticipate that Tactile Systems Technology, Inc. will post 1.14 EPS for the current fiscal year.

Insider Buying and Selling at Tactile Systems Technology

In other Tactile Systems Technology news, CEO Sheri Louise Dodd sold 15,240 shares of the company's stock in a transaction on Monday, February 23rd. The stock was sold at an average price of $28.30, for a total value of $431,292.00. Following the transaction, the chief executive officer owned 254,878 shares of the company's stock, valued at approximately $7,213,047.40. This represents a 5.64% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Kristie Burns sold 6,246 shares of the company's stock in a transaction on Tuesday, February 24th. The shares were sold at an average price of $28.94, for a total value of $180,759.24. Following the completion of the transaction, the vice president directly owned 82,581 shares in the company, valued at $2,389,894.14. This represents a 7.03% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 50,137 shares of company stock valued at $1,434,839. Corporate insiders own 2.10% of the company's stock.

Institutional Trading of Tactile Systems Technology

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. raised its holdings in Tactile Systems Technology by 4.8% during the 4th quarter. Vanguard Group Inc. now owns 1,651,170 shares of the company's stock worth $47,884,000 after buying an additional 76,198 shares during the period. Paradigm Capital Management Inc. NY raised its holdings in Tactile Systems Technology by 5.9% during the 2nd quarter. Paradigm Capital Management Inc. NY now owns 1,618,600 shares of the company's stock worth $16,413,000 after buying an additional 89,600 shares during the period. Dimensional Fund Advisors LP raised its holdings in Tactile Systems Technology by 2.1% during the 3rd quarter. Dimensional Fund Advisors LP now owns 1,191,207 shares of the company's stock worth $16,486,000 after buying an additional 24,001 shares during the period. Federated Hermes Inc. raised its holdings in Tactile Systems Technology by 19.4% during the 4th quarter. Federated Hermes Inc. now owns 645,408 shares of the company's stock worth $18,717,000 after buying an additional 104,648 shares during the period. Finally, Deutsche Bank AG raised its holdings in Tactile Systems Technology by 0.3% during the 4th quarter. Deutsche Bank AG now owns 578,669 shares of the company's stock worth $16,781,000 after buying an additional 1,482 shares during the period. Institutional investors and hedge funds own 83.43% of the company's stock.

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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