TransMedics Group (NASDAQ:TMDX) Reaches New 52-Week Low - Here's Why

Key Points

• TransMedics Group shares hit a new 52-week low, falling as low as $63.24 intraday after previously closing at $67.84. The stock has also dropped well below its 50-day and 200-day moving averages.
• The company’s latest earnings report disappointed investors, with EPS of $0.30 versus $0.62 expected, even though revenue rose 21.2% year over year to $173.93 million. Analysts still expect TransMedics to earn $2.08 per share for the full year.
• Wall Street sentiment remains mixed: analysts now have a Moderate Buy consensus and a $135 average price target, but several firms recently cut targets or downgraded the stock. Insider selling has also been notable, with executives selling shares in recent months.

TransMedics Group, Inc. (NASDAQ:TMDX - Get Free Report)'s share price reached a new 52-week low during mid-day trading on Tuesday . The company traded as low as $63.24 and last traded at $64.30, with a volume of 3160205 shares trading hands. The stock had previously closed at $67.84.

Analysts Set New Price Targets

TMDX has been the topic of a number of research analyst reports. JPMorgan Chase & Co. boosted their price target on shares of TransMedics Group from $114.00 to $149.00 and gave the company a "neutral" rating in a research note on Wednesday, February 25th. Stifel Nicolaus reduced their price target on shares of TransMedics Group from $130.00 to $85.00 and set a "hold" rating on the stock in a research note on Wednesday, May 6th. TD Cowen reduced their price target on shares of TransMedics Group from $190.00 to $120.00 and set a "buy" rating on the stock in a research note on Wednesday, May 6th. Canaccord Genuity Group reduced their price target on shares of TransMedics Group from $152.00 to $124.00 and set a "buy" rating on the stock in a research note on Wednesday, May 6th. Finally, Oppenheimer downgraded shares of TransMedics Group from an "outperform" rating to a "market perform" rating in a research note on Wednesday, May 6th. Six analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $135.00.

TransMedics Group Stock Performance

The firm's 50 day moving average is $111.35 and its two-hundred day moving average is $124.58. The stock has a market capitalization of $2.22 billion, a PE ratio of 14.61 and a beta of 2.07. The company has a debt-to-equity ratio of 1.70, a quick ratio of 6.19 and a current ratio of 6.74.

TransMedics Group (NASDAQ:TMDX - Get Free Report) last announced its earnings results on Tuesday, May 5th. The company reported $0.30 earnings per share for the quarter, missing the consensus estimate of $0.62 by ($0.32). TransMedics Group had a return on equity of 22.38% and a net margin of 27.04%.The business had revenue of $173.93 million for the quarter, compared to analysts' expectations of $174.44 million. During the same period in the previous year, the company earned $0.70 earnings per share. TransMedics Group's quarterly revenue was up 21.2% on a year-over-year basis. As a group, research analysts predict that TransMedics Group, Inc. will post 2.08 earnings per share for the current year.

Insider Activity

In related news, CFO Gerardo Hernandez sold 7,236 shares of the company's stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $147.21, for a total transaction of $1,065,211.56. Following the sale, the chief financial officer directly owned 14,689 shares of the company's stock, valued at $2,162,367.69. This represents a 33.00% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Anil P. Ranganath sold 864 shares of the company's stock in a transaction that occurred on Monday, March 2nd. The stock was sold at an average price of $139.12, for a total transaction of $120,199.68. Following the sale, the insider directly owned 13,091 shares in the company, valued at approximately $1,821,219.92. The trade was a 6.19% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 16,205 shares of company stock worth $2,353,002 over the last 90 days. Company insiders own 6.90% of the company's stock.

Institutional Investors Weigh In On TransMedics Group

Several large investors have recently added to or reduced their stakes in TMDX. Vanguard Group Inc. grew its holdings in TransMedics Group by 0.3% during the 3rd quarter. Vanguard Group Inc. now owns 3,605,607 shares of the company's stock worth $404,549,000 after acquiring an additional 9,650 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in TransMedics Group by 11.9% during the 3rd quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,069,492 shares of the company's stock worth $119,997,000 after acquiring an additional 113,817 shares in the last quarter. Goldman Sachs Group Inc. grew its holdings in TransMedics Group by 50.1% during the 4th quarter. Goldman Sachs Group Inc. now owns 965,931 shares of the company's stock worth $117,506,000 after acquiring an additional 322,353 shares in the last quarter. Geode Capital Management LLC grew its holdings in TransMedics Group by 0.4% during the 4th quarter. Geode Capital Management LLC now owns 816,474 shares of the company's stock worth $99,339,000 after acquiring an additional 2,903 shares in the last quarter. Finally, Two Sigma Investments LP grew its holdings in TransMedics Group by 54.2% during the 3rd quarter. Two Sigma Investments LP now owns 635,394 shares of the company's stock worth $71,291,000 after acquiring an additional 223,409 shares in the last quarter. 99.67% of the stock is owned by hedge funds and other institutional investors.

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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