Piper Sandler Maintains "Overweight" Rating for TransMedics Group (NASDAQ:TMDX)

Piper Sandler has reaffirmed its "overweight" rating for TransMedics Group (NASDAQ:TMDX) in a recent report issued on Tuesday. The firm has set a target price of $180.00 for the stock, which suggests a potential increase of 104.45% based on the previous closing price.

Analyst Ratings Overview

Several other research analysts have recently weighed in on TransMedics Group as well. Baird R W upgraded the stock to a "strong-buy" rating in a report dated September 24th. In contrast, Oppenheimer lowered its price target from $200.00 to $125.00 while maintaining an "outperform" rating. Robert W. Baird also reduced its target from $200.00 to $150.00 and kept an "outperform" rating. Meanwhile, Needham & Company LLC adjusted its price target down from $208.00 to $109.00, issuing a "buy" rating. Morgan Stanley revised its target upward from $104.00 to $145.00, rating the stock as "equal weight." Currently, one analyst rates the stock as a hold, while nine others have issued buy ratings and one has assigned a strong buy rating. According to MarketBeat, the average rating for the stock is "Buy," with an average price target set at $144.80.

Stock Performance

On Tuesday, TransMedics Group's stock saw a decline of 30.3%, trading down $38.20 to reach $88.04. The trading volume was significantly higher than average, with 8,433,020 shares traded compared to the usual 897,963 shares. The company has impressive liquidity metrics, with a current ratio of 9.37, quick ratio of 8.48, and a debt-to-equity ratio of 2.67. With a market capitalization of $2.94 billion, the stock has a P/E ratio of 2,180.50 and a beta of 1.99. In terms of historical performance, TransMedics Group has seen a 1-year low of $36.42 and a high of $177.37.

Recent Earnings Results

The latest quarterly earnings for TransMedics Group were reported on October 28th, where the company posted earnings of $0.12 per share. This figure fell short of the consensus expectation of $0.28, resulting in a net margin of 0.84% and a return on equity of 15.98%. The quarterly revenue was reported at $108.76 million, which was below analysts' expectations of $115.00 million but marks a year-over-year increase of 63.7%. Analysts forecast that TransMedics Group will achieve earnings per share of 1.22 for the current fiscal year.

Insider Trading Activities

In insider trading news, CEO Waleed H. Hassanein sold 8,625 shares on September 16th at an average price of $153.42, totaling about $1.32 million. Post-transaction, the CEO holds 61,643 shares valued at approximately $9.46 million. Additionally, Director James R. Tobin sold 20,000 shares on August 8th, amounting to around $3.19 million. These transactions were disclosed in filings with the SEC.

Institutional Investments

A variety of hedge funds and institutional investors have either increased or adjusted their stakes in TransMedics Group recently. Vaughan Nelson Investment Management L.P. bought a new position worth approximately $39.86 million in the second quarter. Driehaus Capital Management LLC raised its holdings by 15.8%, acquiring an additional 202,867 shares in the last quarter, bringing its total to about $223.83 million. Other notable investors include Hood River Capital Management LLC and Canada Pension Plan Investment Board, both of which also acquired new stakes in the company. Overall, institutional investors and hedge funds own approximately 99.67% of TransMedics Group's stock.

Company Overview

TransMedics Group, Inc. is a medical technology company focused on enhancing organ transplant therapies for patients suffering from end-stage organ failure, both in the United States and internationally. The company is known for its Organ Care System (OCS), a portable organ perfusion and monitoring technology that mimics near-normal physiological conditions for donor organs outside the human body.

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