TransMedics Group (NASDAQ:TMDX) Shares Up 6.3% - Time to Buy?

Key Points

• TransMedics Group shares rose 6.3% on Monday, trading as high as $74.72 after closing at $71.23 the prior day, though volume was far below average.
• Analyst sentiment remains mixed: the stock has a consensus rating of “Hold” with an average price target of $134.50, even as Canaccord Genuity kept a Buy rating and a $124 target.
• The company’s latest quarterly results showed revenue growth of 21.2% year over year to $173.93 million, but earnings missed expectations at $0.30 per share versus the $0.62 forecast.

TransMedics Group, Inc. (NASDAQ:TMDX - Get Free Report) was up 6.3% during trading on Monday . The stock traded as high as $74.72 and last traded at $75.7490. 120,398 shares changed hands during mid-day trading, a decline of 89% from the average daily volume of 1,089,183 shares. The stock had previously closed at $71.23.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on the company. UBS Group reissued a "hold" rating on shares of TransMedics Group in a research report on Tuesday, May 26th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of TransMedics Group in a research report on Tuesday, June 9th. Wall Street Zen downgraded shares of TransMedics Group from a "hold" rating to a "sell" rating in a report on Saturday, May 9th. Stifel Nicolaus increased their price target on shares of TransMedics Group from $75.00 to $80.00 and gave the company a "hold" rating in a report on Thursday, June 18th. Finally, Canaccord Genuity Group restated a "buy" rating and issued a $124.00 price target on shares of TransMedics Group in a research report on Tuesday, June 30th. Six investment analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, TransMedics Group currently has a consensus rating of "Hold" and an average price target of $134.50.

TransMedics Group Price Performance

The company has a market cap of $2.65 billion, a price-to-earnings ratio of 17.39 and a beta of 1.89. The company has a fifty day moving average price of $71.52 and a two-hundred day moving average price of $106.24. The company has a current ratio of 6.74, a quick ratio of 6.19 and a debt-to-equity ratio of 1.70.

TransMedics Group (NASDAQ:TMDX - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The company reported $0.30 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.62 by ($0.32). The firm had revenue of $173.93 million for the quarter, compared to the consensus estimate of $174.44 million. TransMedics Group had a net margin of 27.04% and a return on equity of 22.38%. The business's revenue for the quarter was up 21.2% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.70 earnings per share. As a group, equities research analysts anticipate that TransMedics Group, Inc. will post 1.92 EPS for the current fiscal year.

Insider Transactions at TransMedics Group

In other news, Director Thomas J. Gunderson sold 9,624 shares of the stock in a transaction on Monday, June 15th. The shares were sold at an average price of $75.06, for a total value of $722,377.44. Following the completion of the transaction, the director owned 16,642 shares in the company, valued at approximately $1,249,148.52. This represents a 36.64% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 6.90% of the stock is owned by company insiders.

Institutional Trading of TransMedics Group

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Kensington Investment Counsel LLC bought a new position in shares of TransMedics Group during the 3rd quarter worth approximately $1,926,000. Fred Alger Management LLC raised its stake in TransMedics Group by 303.8% during the third quarter. Fred Alger Management LLC now owns 150,741 shares of the company's stock worth $16,913,000 after acquiring an additional 113,408 shares in the last quarter. Hussman Strategic Advisors Inc. acquired a new position in TransMedics Group during the fourth quarter worth $1,788,000. Baillie Gifford & Co. lifted its holdings in shares of TransMedics Group by 21.4% during the fourth quarter. Baillie Gifford & Co. now owns 316,473 shares of the company's stock valued at $38,499,000 after acquiring an additional 55,754 shares during the period. Finally, M&T Bank Corp lifted its holdings in shares of TransMedics Group by 749.2% during the fourth quarter. M&T Bank Corp now owns 18,572 shares of the company's stock valued at $2,259,000 after acquiring an additional 16,385 shares during the period. 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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