Piper Sandler Reaffirms 'Overweight' Rating for TransMedics Group (NASDAQ:TMDX)

Piper Sandler has reaffirmed an "overweight" rating for shares of TransMedics Group (NASDAQ:TMDX) in a recent report issued on Tuesday. The analysts have set a target price of $180.00 for the stock, indicating a considerable potential upside of about 104.45% based on the stock's closing price prior to the announcement.

Other analysts have also weighed in on TransMedics Group. On September 24th, Baird R W upgraded the stock to a "strong-buy" rating. Meanwhile, Oppenheimer adjusted their price target for the company from $200.00 to $125.00, maintaining an "outperform" rating. Robert W. Baird also made a downward adjustment, reducing their target from $200.00 to $150.00 while keeping an "outperform" rating. Needham & Company LLC lowered their price target from $208.00 to $109.00, issuing a "buy" rating. Additionally, Morgan Stanley increased their price target from $104.00 to $145.00 and assigned an "equal weight" rating. Presently, one analyst rates the stock as a hold, nine as a buy, and one as a strong buy, with an average rating of "Buy" and an average price target of $144.80 according to MarketBeat.

Current Stock Performance

On the trading floor, TransMedics Group shares saw a decline of 30.3% on Tuesday, closing at $88.04. The trading volume for the day reached 8,433,020 shares, significantly higher than its average volume of 897,963. The stock boasts a market capitalization of $2.94 billion and has seen fluctuations between a 1-year low of $36.42 and a high of $177.37. Financial metrics include a P/E ratio of 2,180.50, along with a current ratio of 9.37 and a quick ratio of 8.48.

TransMedics Group's latest quarterly earnings were reported on October 28th, where the company posted an earnings per share (EPS) of $0.12. This figure fell short of analysts' estimates of $0.28 EPS, representing a $0.16 miss. The company's net margin stands at 0.84%, with a return on equity of 15.98%. Revenue for the quarter reached $108.76 million but was below the anticipated $115.00 million. This is an increase of 63.7% year-over-year, compared to the previous year when the company reported an EPS of ($0.12). Analysts forecast that TransMedics Group will achieve an EPS of 1.22 for the current fiscal year.

Insider Activity

In terms of insider transactions, CEO Waleed H. Hassanein sold 8,625 shares on September 16th at an average price of $153.42, yielding a total of $1,323,247.50. Post-sale, he holds 61,643 shares, valued at approximately $9.46 million. Director James R. Tobin also sold 20,000 shares on August 8th for around $3.19 million at an average of $159.33. The recent selling trends indicate that insiders have divested a total of 64,205 shares, amounting to nearly $9.98 million over the past three months. Currently, corporate insiders own about 7.00% of the company's shares.

Institutional Ownership

Institutional trading activity shows significant involvement from hedge funds and other institutions in TransMedics Group. Notably, Vaughan Nelson Investment Management L.P. established a new stake valued at approximately $39.86 million during the second quarter. Additionally, Driehaus Capital Management LLC raised their holdings by 15.8%, now owning 1,486,073 shares valued at $223.83 million post-purchase. Other institutional acquisitions include the Canada Pension Plan Investment Board and Hood River Capital Management LLC, along with several others. Overall, institutional investors and hedge funds currently hold 99.67% of the company's stock.

Company Overview

TransMedics Group, Inc. is a medical technology company focused on enhancing organ transplant therapy for patients with end-stage organ failure, both in the United States and internationally. They develop the Organ Care System (OCS), a portable technology designed to improve the preservation and monitoring of donor organs before transplantation.

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