What Happened?
Shares of measurement equipment distributor Transcat (NASDAQ: TRNS) jumped 6.3% in the afternoon session after the stock extended recent gains in what appeared to be a technical move.
The stock's rise marked the third consecutive day of gains. This upward trend followed a technical buy signal that was issued from a pivot bottom point earlier in the month, after which the stock had already risen over 7%. The continued buying activity, which occurred without any specific company announcements, suggested that investor sentiment was being driven by the stock's recent price performance and trading patterns rather than new fundamental information.
Is now the time to buy Transcat? Access our full analysis report here.
What Is The Market Telling Us
Transcat’s shares are somewhat volatile and have had 13 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 9 months ago when the stock dropped 23.7% on the news that the company reported weak fourth-quarter results. Its revenue missed significantly, and its EBITDA fell short of Wall Street's estimates. The company noted that organic sales in the services segment were below historical trends, and customers closed some facilities while operating with reduced staffing levels, which limited the volume of incoming equipment during the December 2024 holiday period. Overall, this was a softer quarter.
Transcat is down 25.5% since the beginning of the year, and at $79.01 per share, it is trading 37% below its 52-week high of $125.46 from October 2024. Investors who bought $1,000 worth of Transcat’s shares 5 years ago would now be looking at an investment worth $2,917.
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