TransMedics Group (NASDAQ:TMDX) Shares Gap Up - Time to Buy?

Key Points

• TransMedics Group's share price gapped up significantly, opening at $125.97 after a previous close of $114.50, indicating strong investor interest ahead of market opening.
• Several analysts have raised their price targets for TransMedics, with Oppenheimer setting a target of $150.00 while Morgan Stanley has an increased target of $123.00, reflecting a generally positive outlook.
• The company reported a 37.7% year-over-year revenue increase, with earnings per share of $0.92, exceeding consensus estimates and showcasing strong growth dynamics.

TransMedics Group, Inc. (NASDAQ:TMDX - Get Free Report)'s stock price gapped up prior to trading on Monday . The stock had previously closed at $114.50, but opened at $125.97. TransMedics Group shares last traded at $128.59, with a volume of 553,996 shares trading hands.

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on TMDX. Canaccord Genuity Group increased their price objective on shares of TransMedics Group from $129.00 to $142.00 and gave the company a "buy" rating in a report on Tuesday, July 15th. Piper Sandler restated an "overweight" rating and set a $145.00 target price (up from $125.00) on shares of TransMedics Group in a report on Wednesday, June 4th. Wall Street Zen upgraded shares of TransMedics Group from a "hold" rating to a "buy" rating in a report on Saturday, August 2nd. Morgan Stanley lifted their target price on shares of TransMedics Group from $115.00 to $123.00 and gave the company an "equal weight" rating in a research note on Friday, August 1st. Finally, Needham & Company LLC restated a "hold" rating on shares of TransMedics Group in a report on Tuesday, June 17th. Three equities research analysts have rated the stock with a hold rating, six have given a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $123.00.

TransMedics Group Trading Down 1.7%

The company has a debt-to-equity ratio of 1.61, a quick ratio of 9.17 and a current ratio of 9.86. The stock has a market capitalization of $4.35 billion, a P/E ratio of 66.09 and a beta of 2.09. The firm's fifty day simple moving average is $123.66 and its 200 day simple moving average is $99.47.

TransMedics Group (NASDAQ:TMDX - Get Free Report) last announced its quarterly earnings results on Wednesday, July 30th. The company reported $0.92 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.48 by $0.44. The company had revenue of $157.37 million for the quarter, compared to analyst estimates of $146.64 million. TransMedics Group had a net margin of 13.49% and a return on equity of 28.02%. The firm's revenue was up 37.7% on a year-over-year basis. During the same period in the previous year, the firm posted $0.35 EPS. As a group, equities research analysts forecast that TransMedics Group, Inc. will post 1 EPS for the current fiscal year.

Insider Activity at TransMedics Group

In other TransMedics Group news, Director Edward M. Basile sold 5,000 shares of the stock in a transaction that occurred on Tuesday, May 27th. The shares were sold at an average price of $126.45, for a total transaction of $632,250.00. Following the transaction, the director directly owned 2,866 shares in the company, valued at $362,405.70. This trade represents a 63.56% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director David Weill sold 732 shares of the firm's stock in a transaction on Friday, May 23rd. The stock was sold at an average price of $123.88, for a total value of $90,680.16. Following the completion of the sale, the director directly owned 12,134 shares of the company's stock, valued at $1,503,159.92. The trade was a 5.69% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 6,418 shares of company stock worth $818,833 in the last quarter. Company insiders own 7.00% of the company's stock.

Hedge Funds Weigh In On TransMedics Group

Large investors have recently modified their holdings of the stock. OneDigital Investment Advisors LLC lifted its position in shares of TransMedics Group by 52.6% during the 1st quarter. OneDigital Investment Advisors LLC now owns 5,989 shares of the company's stock valued at $403,000 after buying an additional 2,065 shares in the last quarter. Principal Financial Group Inc. raised its stake in TransMedics Group by 2.8% during the first quarter. Principal Financial Group Inc. now owns 198,427 shares of the company's stock valued at $13,350,000 after purchasing an additional 5,480 shares in the last quarter. Vontobel Holding Ltd. purchased a new stake in TransMedics Group during the 1st quarter valued at $291,000. New York State Teachers Retirement System raised its holdings in TransMedics Group by 183.2% during the 1st quarter. New York State Teachers Retirement System now owns 21,949 shares of the company's stock valued at $1,477,000 after buying an additional 14,200 shares during the period. Finally, Sugar Maple Asset Management LLC bought a new position in TransMedics Group in the 1st quarter valued at $740,000. Hedge funds and other institutional investors own 99.67% of the company's stock.

About TransMedics Group

TransMedics Group, Inc, a commercial-stage medical technology company, engages in transforming organ transplant therapy for end-stage organ failure patients in the United States and internationally. The company offers Organ Care System (OCS), a portable organ perfusion, optimization, and monitoring system that utilizes its proprietary and customized technology to replicate near-physiologic conditions for donor organs outside of the human body.