Transcat (NASDAQ:TRNS) Reaches New 1-Year High - Should You Buy?

Key Points

• Transcat shares reached a new 52-week high of $100 before trading near $96.72, with the stock up from its 50-day and 200-day moving averages. However, its valuation is elevated, with a price-to-earnings ratio of 259.74.
• Analysts remain cautious: ratings include one Buy, two Holds and one Sell, resulting in an overall “Hold” consensus and an average price target of $105.50.
• The company exceeded quarterly expectations, reporting $0.51 EPS versus $0.38 expected and revenue of $92.95 million versus $86.55 million forecast. Institutional investors own 98.34% of the shares, while recent insider activity included both a director purchase and another director’s sale.

Transcat, Inc. (NASDAQ:TRNS - Get Free Report)'s share price hit a new 52-week high during mid-day trading on Thursday . The stock traded as high as $100.00 and last traded at $96.7220, with a volume of 41640 shares. The stock had previously closed at $97.76.

Analyst Upgrades and Downgrades

Several research firms recently commented on TRNS. Zacks Research upgraded shares of Transcat from a "strong sell" rating to a "hold" rating in a research note on Friday, May 15th. Northland Securities cut shares of Transcat from an "outperform" rating to a "market perform" rating and set a $95.00 target price for the company. in a research note on Wednesday, August 5th. Wall Street Zen upgraded Transcat from a "sell" rating to a "hold" rating in a research note on Sunday, June 28th. Finally, Weiss Ratings upgraded Transcat from a "sell (d)" rating to a "sell (d+)" rating in a research report on Thursday, May 28th. One analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $105.50.

Transcat Stock Performance

The stock has a 50 day moving average price of $89.90 and a two-hundred day moving average price of $80.38. The company has a debt-to-equity ratio of 0.36, a current ratio of 2.49 and a quick ratio of 2.11. The company has a market capitalization of $899.54 million, a price-to-earnings ratio of 259.74 and a beta of 0.68.

Transcat (NASDAQ:TRNS - Get Free Report) last announced its earnings results on Tuesday, August 4th. The scientific and technical instruments company reported $0.51 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.38 by $0.13. The company had revenue of $92.95 million for the quarter, compared to analyst estimates of $86.55 million. Transcat had a net margin of 0.99% and a return on equity of 5.56%. On average, analysts predict that Transcat, Inc. will post 1.74 EPS for the current fiscal year.

Insider Buying and Selling at Transcat

In other news, Director Christopher P. Gillette sold 504 shares of Transcat stock in a transaction on Friday, August 7th. The stock was sold at an average price of $94.23, for a total value of $47,491.92. Following the completion of the sale, the director directly owned 200 shares of the company's stock, valued at approximately $18,846. This trade represents a 71.59% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Craig D. Cairns bought 1,050 shares of the company's stock in a transaction dated Thursday, August 6th. The shares were purchased at an average price of $93.97 per share, with a total value of $98,668.50. Following the transaction, the director owned 1,480 shares of the company's stock, valued at $139,075.60. The trade was a 244.19% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. 1.80% of the stock is currently owned by corporate insiders.

Institutional Trading of Transcat

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Teachers Retirement System of The State of Kentucky bought a new stake in shares of Transcat during the fourth quarter worth approximately $1,974,000. Needham Investment Management LLC boosted its stake in Transcat by 33.0% in the fourth quarter. Needham Investment Management LLC now owns 124,370 shares of the scientific and technical instruments company's stock valued at $7,056,000 after acquiring an additional 30,870 shares during the last quarter. Dimensional Fund Advisors LP boosted its stake in Transcat by 3.7% in the first quarter. Dimensional Fund Advisors LP now owns 262,033 shares of the scientific and technical instruments company's stock valued at $19,244,000 after acquiring an additional 9,266 shares during the last quarter. Fifth Third Bancorp grew its holdings in Transcat by 6,267.8% during the 1st quarter. Fifth Third Bancorp now owns 47,886 shares of the scientific and technical instruments company's stock worth $3,517,000 after acquiring an additional 47,134 shares during the period. Finally, Royce & Associates LP grew its holdings in Transcat by 15.3% during the 4th quarter. Royce & Associates LP now owns 390,546 shares of the scientific and technical instruments company's stock worth $22,156,000 after acquiring an additional 51,774 shares during the period. 98.34% of the stock is currently owned by institutional investors and hedge funds.

About Transcat

Transcat, Inc NASDAQ: TRNS is a leading provider of calibration, laboratory, and metrology services in North America. Founded in 1964 and headquartered in Ronkonkoma, New York, the company specializes in ensuring the accuracy and compliance of measurement instruments across a wide range of industries. Transcat operates a network of ISO/IEC 17025–accredited laboratories and offers on-site field calibration, instrument repair, and preventive maintenance services.

In addition to its calibration services, Transcat distributes precision instrumentation and related software solutions from top manufacturers.

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