TransAct Technologies (NASDAQ:TACT) Stock Price Passes Above Two Hundred Day Moving Average - Time to Sell?

Key Points

• TransAct Technologies shares moved above their 200-day moving average, trading as high as $5.24 and recently around $5.06, after having a 200-day average of $3.90.
• Analyst sentiment remains cautious: Weiss Ratings reiterated a sell (e+) rating, Zacks upgraded the stock to hold, and the overall consensus rating is Reduce.
• The company reported better-than-expected Q1 earnings with EPS of $0.07 versus estimates for a loss, and revenue of $14.41 million above expectations; it also authorized a $3 million share buyback.

Shares of TransAct Technologies Incorporated (NASDAQ:TACT - Get Free Report) crossed above its two hundred day moving average during trading on Wednesday . The stock has a two hundred day moving average of $3.90 and traded as high as $5.24. TransAct Technologies shares last traded at $5.06, with a volume of 15,662 shares.

Wall Street Analyst Weigh In

Several analysts have weighed in on TACT shares. Weiss Ratings reissued a "sell (e+)" rating on shares of TransAct Technologies in a research report on Tuesday, June 9th. Zacks Research upgraded shares of TransAct Technologies to a "hold" rating in a research note on Wednesday, June 3rd. One analyst has rated the stock with a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Reduce".

TransAct Technologies Trading Down 2.5%

The firm has a market capitalization of $52.02 million, a PE ratio of -101.20 and a beta of 1.21. The firm's fifty day moving average price is $4.48 and its 200 day moving average price is $3.90.

TransAct Technologies (NASDAQ:TACT - Get Free Report) last issued its earnings results on Tuesday, May 12th. The technology company reported $0.07 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.04) by $0.11. TransAct Technologies had a negative net margin of 0.93% and a negative return on equity of 1.56%. The firm had revenue of $14.41 million during the quarter, compared to analysts' expectations of $12.60 million. On average, analysts predict that TransAct Technologies Incorporated will post -0.05 earnings per share for the current year.

TransAct Technologies declared that its Board of Directors has initiated a stock buyback plan on Wednesday, May 13th that authorizes the company to repurchase $3.00 million in shares. This repurchase authorization authorizes the technology company to buy up to 8.7% of its shares through open market purchases. Shares repurchase plans are often an indication that the company's leadership believes its stock is undervalued.

Institutional Trading of TransAct Technologies

Several hedge funds and other institutional investors have recently bought and sold shares of TACT. Coldstream Capital Management Inc. acquired a new position in TransAct Technologies in the third quarter valued at approximately $58,000. Goldman Sachs Group Inc. increased its holdings in TransAct Technologies by 33.2% in the fourth quarter. Goldman Sachs Group Inc. now owns 20,464 shares of the technology company's stock valued at $82,000 after buying an additional 5,100 shares in the last quarter. Arrowstreet Capital Limited Partnership acquired a new position in shares of TransAct Technologies in the third quarter worth about $151,000. Susquehanna International Group LLP acquired a new position in shares of TransAct Technologies in the third quarter worth about $225,000. Finally, Heron Bay Capital Management acquired a new position in shares of TransAct Technologies in the fourth quarter worth about $236,000. 74.46% of the stock is owned by institutional investors and hedge funds.

About TransAct Technologies

TransAct Technologies Inc designs, manufactures and distributes secure card issuance systems and embedded transactional printing solutions for a variety of industries. The company's portfolio includes high-speed card printers, card personalization and issuance software, as well as embedded printers used in kiosks, point-of-sale terminals, lottery machines and gaming applications. TransAct's products are built to deliver reliable, on-demand printing and secure card encoding for markets that require rapid, accurate issuance of payment cards, identification badges and tickets.

Within its secure card solutions segment, TransAct offers turnkey systems that integrate card printing, magnetic stripe encoding, smart card personalization and instant card issuance software.

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