Wall Street Zen Downgrades TransMedics Group (NASDAQ:TMDX) to Sell

Key Points

• Wall Street Zen downgraded TransMedics Group (NASDAQ:TMDX) from hold to sell, adding to a wave of softer sentiment from other analysts.
• The stock was down 6.7% and opened at $68.00, near its 52-week low of $67.69 and well below its 50-day and 200-day moving averages.
• TransMedics recently reported Q1 EPS of $0.30, missing expectations of $0.62, even though revenue rose 21.2% year over year to $173.93 million.

TransMedics Group (NASDAQ:TMDX - Get Free Report) was downgraded by analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a report released on Saturday.

Other research analysts have also recently issued research reports about the company. Oppenheimer cut TransMedics Group from an "outperform" rating to a "market perform" rating in a research report on Wednesday. Piper Sandler decreased their price target on TransMedics Group from $160.00 to $120.00 and set an "overweight" rating on the stock in a research report on Wednesday. Stifel Nicolaus decreased their price target on TransMedics Group from $130.00 to $85.00 and set a "hold" rating on the stock in a research report on Wednesday. Canaccord Genuity Group decreased their price target on TransMedics Group from $152.00 to $124.00 and set a "buy" rating on the stock in a research report on Wednesday. Finally, JPMorgan Chase & Co. raised their price target on TransMedics Group from $114.00 to $149.00 and gave the stock a "neutral" rating in a research report on Wednesday, February 25th. Six research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $135.00.

TransMedics Group Stock Down 6.7%

TMDX stock opened at $68.00 on Friday. The company has a debt-to-equity ratio of 1.70, a current ratio of 6.74 and a quick ratio of 6.59. The stock has a market capitalization of $2.35 billion, a price-to-earnings ratio of 15.45 and a beta of 2.07. The business's fifty day moving average price is $114.04 and its two-hundred day moving average price is $125.34. TransMedics Group has a fifty-two week low of $67.69 and a fifty-two week high of $156.00.

TransMedics Group (NASDAQ:TMDX - Get Free Report) last issued its quarterly earnings results on Tuesday, May 5th. The company reported $0.30 EPS for the quarter, missing analysts' consensus estimates of $0.62 by ($0.32). TransMedics Group had a return on equity of 22.38% and a net margin of 27.04%.The company had revenue of $173.93 million during the quarter, compared to the consensus estimate of $174.44 million. During the same quarter in the previous year, the business posted $0.70 EPS. The firm's revenue for the quarter was up 21.2% on a year-over-year basis. On average, equities analysts anticipate that TransMedics Group will post 2.22 earnings per share for the current year.

Insider Transactions at TransMedics Group

In other TransMedics Group news, CFO Gerardo Hernandez sold 7,236 shares of TransMedics Group stock in a transaction dated Wednesday, March 4th. The stock was sold at an average price of $147.21, for a total value of $1,065,211.56. Following the transaction, the chief financial officer owned 14,689 shares in the company, valued at $2,162,367.69. The trade was a 33.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Anil P. Ranganath sold 864 shares of TransMedics Group stock in a transaction dated Monday, March 2nd. The shares were sold at an average price of $139.12, for a total value of $120,199.68. Following the completion of the transaction, the insider owned 13,091 shares in the company, valued at approximately $1,821,219.92. This represents a 6.19% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 16,205 shares of company stock valued at $2,353,002. Company insiders own 6.90% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Kensington Investment Counsel LLC acquired a new stake in shares of TransMedics Group during the third quarter valued at about $1,926,000. Nordea Investment Management AB acquired a new stake in shares of TransMedics Group during the third quarter valued at about $4,070,000. Peregrine Capital Management LLC boosted its stake in shares of TransMedics Group by 16.5% during the third quarter. Peregrine Capital Management LLC now owns 68,406 shares of the company's stock valued at $7,675,000 after purchasing an additional 9,676 shares in the last quarter. Fieldview Capital Management LLC acquired a new position in shares of TransMedics Group in the third quarter worth approximately $1,716,000. Finally, Citigroup Inc. lifted its stake in shares of TransMedics Group by 29.3% in the third quarter. Citigroup Inc. now owns 76,785 shares of the company's stock worth $8,615,000 after acquiring an additional 17,414 shares during the period. Institutional investors 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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