Transcat (NASDAQ:TRNS) Hits New 1-Year High Following Earnings Beat

Transcat, Inc. (NASDAQ:TRNS) shares reached a new 52-week high during trading on Wednesday following a stronger than expected earnings report. The stock traded as high as $106.00 and last traded at $105.5940, with a volume of 63,138 shares traded. The stock had previously closed at $89.52.

The scientific and technical instruments company reported $0.64 earnings per share for the quarter, beating analysts’ consensus estimates of $0.45 by $0.19. The company had revenue of $97.09 million during the quarter, compared to analysts’ expectations of $92.46 million. Transcat had a return on equity of 5.56% and a net margin of 0.99%.

Transcat News Roundup

Here are the key news stories impacting Transcat this week:

• Positive Sentiment: Quarterly results topped expectations: Transcat reported earnings of $0.64 per share, above consensus estimates of $0.42–$0.45, while revenue of $97.09 million exceeded expectations of $92.46 million. Earnings also increased from $0.44 per share a year earlier. Zacks earnings article
• Positive Sentiment: Service growth and margins strengthened: The company reported double-digit organic revenue growth in its service business and significant service gross-margin expansion. It raised its FY2027 service organic growth outlook to low double digits and aims for at least 100 basis points of service gross-margin expansion in the second half. Outlook article
• Positive Sentiment: Oppenheimer upgraded the stock: The firm moved Transcat from “market perform” to “outperform” and set a $115 price target, signaling a more bullish view of the shares’ prospects.

Analyst Upgrades and Downgrades

TRNS has been the subject of a number of recent research reports. Oppenheimer upgraded shares of Transcat from a “market perform” rating to an “outperform” rating and set a $115.00 price target for the company in a research note on Wednesday. CJS Securities started coverage on shares of Transcat in a research note on Tuesday, October 27th. They issued an “outperform” rating and a $115.00 price objective on the stock. Northland Securities raised shares of Transcat from a “market perform” rating to an “outperform” rating and set a $95.00 target price for the company in a report on Wednesday, October 21st. Finally, Weiss Ratings reiterated a “sell (d+)” rating on shares of Transcat in a research note on Tuesday, August 25th. Three equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $108.33.

Insider Activity

In other news, Director Craig Cairns acquired 1,050 shares of Transcat stock in a transaction that occurred on Thursday, August 6th. The stock was purchased at an average price of $93.97 per share, for a total transaction of $98,668.50. Following the completion of the transaction, the director directly owned 1,480 shares in the company, valued at approximately $139,075.60. This trade represents a 244.19% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Christopher P. Gillette sold 504 shares of the firm’s stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $94.23, for a total transaction of $47,491.92. Following the completion of the sale, the director owned 200 shares of the company’s stock, valued at approximately $18,846. The trade was a 71.59% decrease in their position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 1.80% of the company’s stock.

Institutional Trading of Transcat

Several hedge funds have recently modified their holdings of TRNS. Summit Creek Advisors LLC boosted its stake in shares of Transcat by 23.8% in the third quarter. Summit Creek Advisors LLC now owns 58,135 shares of the scientific and technical instruments company’s stock valued at $5,140,000 after buying an additional 11,165 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in Transcat during the third quarter worth $221,000. GAMMA Investing LLC raised its position in Transcat by 133.6% in the third quarter. GAMMA Investing LLC now owns 1,030 shares of the scientific and technical instruments company’s stock worth $91,000 after acquiring an additional 589 shares in the last quarter. Tidal Investments LLC purchased a new position in Transcat in the second quarter worth $688,000. Finally, Integrated Wealth Concepts LLC purchased a new position in Transcat in the second quarter worth $32,000. 98.34% of the stock is owned by institutional investors and hedge funds.

Transcat Trading Up 19.0%

The company has a quick ratio of 2.11, a current ratio of 2.49 and a debt-to-equity ratio of 0.36. The business has a fifty day simple moving average of $86.10 and a 200 day simple moving average of $81.83. The company has a market cap of $999.91 million, a price-to-earnings ratio of 287.80 and a beta of 0.61.

About Transcat

Transcat, Inc (NASDAQ: TRNS) provides calibration, compliance, and measurement services for organizations that rely on accurate test and measurement equipment. The company supports customers in regulated industries, including life sciences, aerospace and defense, energy, manufacturing, and other industrial markets.

Its service offerings include laboratory and onsite calibration, repair, validation, and asset-management services. Transcat calibrates a broad range of equipment used to measure temperature, pressure, electrical and electronic properties, radio frequency signals, dimensional characteristics, and other technical parameters.