Tactile Systems Technology Inc. (NASDAQ: TCMD) stock fell -11.69% on Monday to $14.50 against a previous-day closing price of $16.42. With 1.15 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.34 million shares. During the session, the Medical Devices company that operates in wider Healthcare sector, reached to the highest price of $16.56 whereas the lowest price it dropped to was $14.48. The 52-week range on TCMD shows that it touched its highest point at $26.11 and its lowest point at $6.52 during that stretch. It currently has a 1-year price target of $29.67. Beta for the stock currently stands at 1.22.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of TCMD was down-trending over the past week, with a drop of -20.15%, but this was down by -19.67% over a month. The stock gained 73.44% in the past year, while it has gained 26.31% so far this year. A look at the trailing 12-month EPS for TCMD yields 0.02 with Next year EPS estimates of 0.41. For the next quarter, that number is 0.04. This implies an EPS growth rate of -48.60% for this year and 355.56% for next year. EPS is expected to grow by 5.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -34.40%.
Float and Shares Shorts:
At present, 23.35 million TCMD shares are outstanding with a float of 22.59 million shares on hand for trading. On Aug 30, 2023, short shares totaled 0.52 million, which was 2.24% higher than short shares on Jul 30, 2023. In addition to Mr. Daniel L. Reuvers as the firm’s Pres, CEO & Director, Ms. Kristie T. Burns serves as its Sr. VP of Marketing & Clinical Affairs.
Through their ownership of 90.40% of TCMD’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 54.66% of TCMD, in contrast to 32.70% held by mutual funds. Shares owned by individuals account for 13.27%. As the largest shareholder in TCMD with 6.95% of the stake, BlackRock Fund Advisors holds 1,629,247 shares worth 1,629,247. A second-largest stockholder of TCMD, Divisadero Street Capital Managem, holds 1,371,435 shares, controlling over 5.85% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in TCMD, holding 1,312,035 shares or 5.59% stake. With a 2.99% stake in TCMD, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 702,000 shares are owned by the mutual fund manager. The iShares Russell 2000 ETF, which owns about 2.24% of TCMD stock, is the second-largest Mutual Fund holder. It holds 524,725 shares valued at 9.94 million. Vanguard Extended Market Index Fu holds 1.33% of the stake in TCMD, owning 311,006 shares worth 5.89 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, TCMD reported revenue of $59.65M and operating income of -$4.09M. The EBITDA in the recently reported quarter was -$2.34M and diluted EPS was -$0.23.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for TCMD since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With TCMD analysts setting a high price target of $30.00 and a low target of $29.00, the average target price over the next 12 months is $29.67. Based on these targets, TCMD could surge 106.9% to reach the target high and rise by 100.0% to reach the target low. Reaching the average price target will result in a growth of 104.62% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Summary of Insider Activity:
Insiders traded TCMD stock several times over the past three months with 1 Buys and 1 Sells. In these transactions, 18,701 shares were bought while 1,062 shares were sold. The number of buy transactions has increased to 16 while that of sell transactions has risen to 13 over the past year. The total number of shares bought during that period was 189,912 while 23,098 shares were sold.