TransMedics Group, Inc. (NASDAQ:TMDX) Chief Financial Officer Stephen Gordon recently completed a significant stock transaction, according to the latest SEC filings. Gordon sold 15,000 shares of the company's common stock at prices ranging from $128.00, totaling approximately $1.92 million.
The transactions took place on May 6, 2024, and were reported to the SEC on May 8. It's noteworthy that the sales were conducted under a pre-arranged trading plan, known as a Rule 10b5-1 plan, which Gordon had entered into on September 14, 2023. Such plans allow company insiders to sell shares over a predetermined period of time, to avoid concerns about transactions based on access to non-public information.
In addition to the sale, Gordon also exercised options to acquire the same number of shares, 15,000, at a price of $38.46 per share, which is equivalent to a transaction value of $576,900. This option exercise is part of a vesting schedule where 2.0833% of the total number of shares become vested each month until February 2025.
Following these transactions, Gordon's direct ownership in TransMedics Group stands at 23,299 shares of common stock. It is important for investors to be aware of such transactions as they reflect the actions of company insiders who have in-depth knowledge of the business.
TransMedics Group, Inc. specializes in electromedical and electrotherapeutic apparatus, and is based in Andover, Massachusetts. The company's stock is traded under the ticker symbol TMDX on the NASDAQ.
InvestingPro Insights
As TransMedics Group, Inc. (NASDAQ:TMDX) continues to navigate the dynamic medical apparatus sector, recent transactions by CFO Stephen Gordon have drawn attention. To further understand the financial landscape of TransMedics, InvestingPro provides key metrics and insights that can offer investors a deeper analysis of the company's performance and stock behavior.
InvestingPro Data indicates that TransMedics' market capitalization currently stands at $4.19 billion USD. The company has experienced a significant revenue growth, with an increase of 149.23% in the last twelve months as of Q1 2024. This growth is reflected in the company's impressive gross profit margin of 62.4% over the same period. However, it's important to note that TransMedics is trading at a high Price / Book multiple of 26.3, which suggests that the stock may be valued quite richly in terms of its net assets.
From a stock performance perspective, TransMedics has witnessed a strong return over the last month, with a 41.53% total price return, and an even more remarkable six-month price total return of 107.94%. This performance is consistent with one of the InvestingPro Tips that highlights the significant return over the last week, which was 8.23%.
Another InvestingPro Tip worth considering is that analysts predict the company will be profitable this year, which aligns with the optimistic revenue growth figures. This could be a key factor for investors to watch, especially in the context of the company's recent insider transactions.
For those looking to delve further into the financial health and future prospects of TransMedics, InvestingPro offers additional tips. There are 18 more InvestingPro Tips available for TMDX, which can be accessed at https://www.investing.com/pro/TMDX. To help investors make the most of these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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