TransMedics Group (NASDAQ:TMDX) Posts Earnings Results, Misses Expectations By $0.06 EPS

Key Points

• TransMedics reported quarterly EPS of $0.44, missing analyst expectations by $0.06, while revenue of $189.95 million exceeded estimates of $184 million. The company posted a 27.04% net margin and 22.38% return on equity.
• Shares fell 1.0% to $80.75 following the results. The stock remains well below its 52-week high of $156, with a market cap of approximately $2.79 billion.
• Analyst sentiment is mixed: the stock has an average “Hold” rating and a consensus price target of $126.27, despite some firms maintaining Buy ratings and others downgrading it to Sell or Strong Sell.

TransMedics Group (NASDAQ:TMDX - Get Free Report) announced its earnings results on Tuesday. The company reported $0.44 earnings per share for the quarter, missing the consensus estimate of $0.50 by ($0.06), FiscalAI reports. TransMedics Group had a return on equity of 22.38% and a net margin of 27.04%.The business had revenue of $189.95 million for the quarter, compared to analyst estimates of $184.00 million.

TransMedics Group Trading Down 1.0%

Shares of NASDAQ:TMDX traded down $0.80 during trading on Tuesday, reaching $80.75. The stock had a trading volume of 1,312,839 shares, compared to its average volume of 1,072,428. The business has a fifty day moving average price of $72.81 and a 200-day moving average price of $100.15. The company has a quick ratio of 6.19, a current ratio of 6.74 and a debt-to-equity ratio of 1.70. The stock has a market cap of $2.79 billion, a P/E ratio of 18.35 and a beta of 1.90. TransMedics Group has a fifty-two week low of $60.10 and a fifty-two week high of $156.00.

Analyst Upgrades and Downgrades

Several analysts have commented on TMDX shares. Weiss Ratings downgraded TransMedics Group from a "hold (c)" rating to a "hold (c-)" rating in a research note on Tuesday, July 28th. Needham & Company LLC dropped their target price on TransMedics Group from $142.00 to $106.00 and set a "buy" rating on the stock in a report on Monday. Wall Street Zen cut TransMedics Group from a "hold" rating to a "sell" rating in a research note on Saturday, May 9th. TD Cowen reaffirmed a "buy" rating and set a $120.00 price target on shares of TransMedics Group in a report on Wednesday, July 1st. Finally, Zacks Research lowered shares of TransMedics Group from a "hold" rating to a "strong sell" rating in a research report on Monday, July 6th. Six equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $126.27.

Insider Transactions at TransMedics Group

In related news, Director Thomas J. Gunderson sold 9,624 shares of the firm's stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $75.06, for a total transaction of $722,377.44. Following the sale, the director owned 16,642 shares in the company, valued at approximately $1,249,148.52. This trade represents a 36.64% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Company insiders own 6.90% of the company's stock.

Institutional Investors Weigh In On TransMedics Group

Hedge funds and other institutional investors have recently made changes to their positions in the business. Harvest Fund Management Co. Ltd acquired a new stake in TransMedics Group during the 3rd quarter worth approximately $29,000. Allworth Financial LP lifted its position in TransMedics Group by 74.3% during the third quarter. Allworth Financial LP now owns 265 shares of the company's stock valued at $30,000 after buying an additional 113 shares in the last quarter. Parallel Advisors LLC grew its stake in TransMedics Group by 42.1% during the fourth quarter. Parallel Advisors LLC now owns 280 shares of the company's stock worth $34,000 after buying an additional 83 shares during the period. US Bancorp DE grew its stake in TransMedics Group by 24.2% during the third quarter. US Bancorp DE now owns 533 shares of the company's stock worth $60,000 after buying an additional 104 shares during the period. Finally, Atlas Capital Advisors Inc. acquired a new stake in shares of TransMedics Group in the fourth quarter worth $61,000. Hedge funds and other institutional investors own 99.67% of the company's stock.

About TransMedics Group

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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