Tactile Systems Technology (NASDAQ:TCMD) Upgraded by B. Riley Financial to Buy Rating

Key Points

• B. Riley upgraded Tactile Systems (NASDAQ:TCMD) from "neutral" to "buy" with a $36 price target, implying roughly a 42% upside; the consensus rating is "Moderate Buy" with an average target of $38.60.
• Q1 results showed an EPS loss of $0.08 (missing estimates by $0.01) while revenue beat at $75.27M versus $70.57M expected.
• Insider selling has been active—CEO and VP recently sold shares and insiders disposed of 50,137 shares (~$1.43M) in the past 90 days—while institutional investors own about 83.43% of the stock.

Tactile Systems Technology (NASDAQ:TCMD - Get Free Report) was upgraded by equities researchers at B. Riley Financial from a "neutral" rating to a "buy" rating in a research note issued to investors on Thursday, MarketBeat reports. The firm presently has a $36.00 price target on the stock. B. Riley Financial's target price suggests a potential upside of 42.29% from the stock's previous close.

A number of other equities analysts have also recently commented on TCMD. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Tactile Systems Technology in a report on Friday, March 27th. 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 note on Wednesday, February 18th. BTIG Research raised their price objective on shares of Tactile Systems Technology from $38.00 to $40.00 and gave the stock a "buy" rating in a research report on Tuesday. Finally, Piper Sandler upped their target price on shares of Tactile Systems Technology from $35.00 to $42.00 and gave the company an "overweight" rating in a report on Wednesday, February 18th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and two have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, Tactile Systems Technology currently has an average rating of "Moderate Buy" and an average target price of $38.60.

Tactile Systems Technology Stock Performance

Tactile Systems Technology stock opened at $25.30 on Thursday. The company has a market capitalization of $570.77 million, a P/E ratio of 28.75 and a beta of 0.82. Tactile Systems Technology has a fifty-two week low of $9.34 and a fifty-two week high of $37.77. The stock has a 50-day simple moving average of $26.26 and a 200-day simple moving average of $26.18.

Tactile Systems Technology (NASDAQ:TCMD - Get Free Report) last released its quarterly earnings results on Monday, May 4th. The company reported ($0.08) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.07) by ($0.01). Tactile Systems Technology had a return on equity of 9.70% and a net margin of 5.91%.The firm had revenue of $75.27 million for the quarter, compared to analysts' expectations of $70.57 million. As a group, analysts forecast that Tactile Systems Technology will post 1.14 earnings per share for the current year.

Insider Buying and Selling

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

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of TCMD. Russell Investments Group Ltd. lifted its holdings in Tactile Systems Technology by 1,594.4% in the third quarter. Russell Investments Group Ltd. now owns 2,118 shares of the company's stock valued at $29,000 after acquiring an additional 1,993 shares during the period. Caitong International Asset Management Co. Ltd purchased a new position in shares of Tactile Systems Technology in the 4th quarter valued at about $32,000. Quarry LP increased its holdings in shares of Tactile Systems Technology by 302.6% in the 3rd quarter. Quarry LP now owns 2,319 shares of the company's stock valued at $32,000 after purchasing an additional 1,743 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC acquired a new stake in shares of Tactile Systems Technology in the fourth quarter valued at about $36,000. Finally, Global Retirement Partners LLC purchased a new stake in Tactile Systems Technology during the fourth quarter worth about $37,000. Hedge funds and other institutional investors 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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