TransMedics Group (NASDAQ:TMDX) Announces Quarterly Earnings Results, Misses Expectations By $0.32 EPS

Key Points

• TransMedics reported Q results with EPS $0.30 versus a $0.62 consensus (missed by $0.32), while revenue of $173.93M was essentially in line and the company still showed strong profitability with a 30.17% ROE and 31.43% net margin.
• Shares traded down to $94.93 (down $2.15) on heavy volume of 1.55M vs. an average of 886k; the stock has a market cap of $3.28B and a P/E of 19.37 with a 52-week range of $91.01–$156.00.
• Despite the miss, analysts remain mostly positive (average rating “Moderate Buy” with a consensus target of $152.33 and several firms raising targets), while insiders sold ~16,205 shares (~$2.35M) over the quarter, leaving insiders with 6.90% ownership.

TransMedics Group (NASDAQ:TMDX - Get Free Report) released its earnings results on Tuesday. The company reported $0.30 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.62 by ($0.32), FiscalAI reports. TransMedics Group had a return on equity of 30.17% and a net margin of 31.43%.The company had revenue of $173.93 million for the quarter, compared to the consensus estimate of $174.48 million.

TransMedics Group Stock Performance

NASDAQ TMDX traded down $2.15 during trading on Tuesday, reaching $94.93. 1,550,278 shares of the company's stock were exchanged, compared to its average volume of 886,556. The business has a 50 day moving average price of $117.36 and a 200-day moving average price of $126.08. The stock has a market capitalization of $3.28 billion, a P/E ratio of 19.37 and a beta of 2.07. The company has a debt-to-equity ratio of 1.06, a current ratio of 7.14 and a quick ratio of 6.59. TransMedics Group has a fifty-two week low of $91.01 and a fifty-two week high of $156.00.

Wall Street Analyst Weigh In

Several research firms recently issued reports on TMDX. Piper Sandler upped their target price on TransMedics Group from $140.00 to $160.00 and gave the stock an "overweight" rating in a report on Wednesday, February 25th. TD Cowen reiterated a "buy" rating on shares of TransMedics Group in a report on Monday, March 16th. Needham & Company LLC upped their target price on TransMedics Group from $166.00 to $174.00 and gave the stock a "buy" rating in a report on Wednesday, February 25th. Stifel Nicolaus upped their target price on TransMedics Group from $115.00 to $130.00 and gave the stock a "hold" rating in a report on Monday, March 9th. Finally, Oppenheimer boosted their price target on TransMedics Group from $150.00 to $175.00 and gave the stock an "outperform" rating in a research report on Wednesday, February 25th. Seven investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $152.33.

Insider Activity

In other news, Director Stephanie Lovell sold 1,193 shares of the company's stock in a transaction that occurred on Wednesday, March 4th. The stock was sold at an average price of $149.62, for a total value of $178,496.66. Following the transaction, the director owned 2,866 shares of the company's stock, valued at approximately $428,810.92. This represents a 29.39% 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. Also, insider Nicholas Corcoran sold 2,966 shares of the company's stock in a transaction that occurred on Monday, March 2nd. The shares were sold at an average price of $139.12, for a total value of $412,629.92. Following the completion of the transaction, the insider directly owned 29,831 shares in the company, valued at $4,150,088.72. The trade was a 9.04% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 16,205 shares of company stock valued at $2,353,002. 6.90% of the stock is owned by insiders.

Hedge Funds Weigh In On TransMedics Group

Institutional investors and hedge funds have recently made changes to their positions in the company. Harvest Fund Management Co. Ltd acquired a new position in shares of TransMedics Group in the third quarter valued at approximately $29,000. Allworth Financial LP grew its position in shares of TransMedics Group by 74.3% in the third quarter. Allworth Financial LP now owns 265 shares of the company's stock valued at $30,000 after purchasing an additional 113 shares during the last quarter. Parallel Advisors LLC grew its position in shares of TransMedics Group by 42.1% in the fourth quarter. Parallel Advisors LLC now owns 280 shares of the company's stock valued at $34,000 after purchasing an additional 83 shares during the last quarter. EverSource Wealth Advisors LLC grew its position in shares of TransMedics Group by 72.0% in the second quarter. EverSource Wealth Advisors LLC now owns 485 shares of the company's stock valued at $65,000 after purchasing an additional 203 shares during the last quarter. Finally, Atlas Capital Advisors Inc. acquired a new position in shares of TransMedics Group in the fourth quarter valued at approximately $61,000. Institutional investors and hedge funds own 99.67% of the company's stock.

TransMedics Group Company Profile

TransMedics Group, Inc is a medical device company headquartered in Andover, Massachusetts, that specializes in advanced organ preservation and transport systems for transplantation. The company's flagship technology, the Organ Care System (OCS), maintains donor organs in a near-physiologic, warm, beating state during transportation, with the aim of extending preservation times and improving post‐transplant outcomes. TransMedics' solutions address a critical need in transplantation by reducing ischemic injury and expanding the donor organ pool.

TransMedics currently markets two commercially available OCS platforms.

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