Tactile Systems Technology (NASDAQ:TCMD) Shares Up 5.9% on Strong Earnings

Tactile Systems Technology, Inc. (NASDAQ:TCMD) shares were up 5.9% during mid-day trading on Tuesday following a better than expected earnings announcement. The company traded as high as $27.88 and last traded at $28.01. Approximately 124,301 shares were traded during trading, a decline of 56% from the average daily volume of 283,561 shares. The stock had previously closed at $26.45.

The company reported $0.46 EPS for the quarter, beating the consensus estimate of $0.44 by $0.02. The firm had revenue of $103.59 million during the quarter, compared to analysts’ expectations of $93.80 million. Tactile Systems Technology had a return on equity of 8.84% and a net margin of 5.83%.

Key Stories Impacting Tactile Systems Technology

Here are the key news stories impacting Tactile Systems Technology this week:

• Positive Sentiment: Q4 beat on both revenue and EPS — Revenue of $103.6M (+21% YoY) topped estimates and diluted EPS of $0.46 beat consensus, signaling healthy demand for lymphedema and airway-clearance products. Read More.
• Positive Sentiment: Raised 2026 topline/EBITDA outlook — Company expects 2026 revenue of $357–365M (8–11% growth) and adjusted EBITDA of $49–51M, above consensus revenue, giving investors a clearer, upwardly biased guide for next year. Read More.
• Positive Sentiment: Margin and profitability improvement — Q4 gross margin expanded to 78% (from 75%) and adjusted EBITDA rose to $22.9M, showing operating leverage as sales accelerate. Read More.
• Positive Sentiment: Strategic acquisition — Purchase of LymphaTech adds 3D scanning/digital capabilities to support lymphedema diagnostics and therapy adoption, which could strengthen long-term growth and product differentiation. Read More.
• Neutral Sentiment: Capital allocation moves — Company repaid its term loan and repurchased $26.5M of stock (avg ~$12.36), improving leverage but reducing cash to $83.4M; impact depends on future cash generation. Read More.
• Neutral Sentiment: Investor/analyst context — Recent analyst coverage remains largely positive with several buy ratings and mid-$30s/low-$30s targets; institutional flows mixed, which could temper volatility. Read More.
• Negative Sentiment: Operating expenses and slower expected growth — SG&A and other operating expenses rose ~20% in Q4; 2026 revenue growth guide (8–11%) is a deceleration vs Q4’s 21% pace, which could concern growth-focused investors. Read More.
• Negative Sentiment: Minor insider selling — Small insider sale disclosed (5,139 shares), which is unlikely material but sometimes raises short‑term caution among some investors. Read More.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on TCMD shares. Lake Street Capital upped their price target on shares of Tactile Systems Technology from $23.50 to $32.00 and gave the stock a “buy” rating in a research report on Tuesday, November 4th. Raymond James Financial set a $35.00 target price on shares of Tactile Systems Technology in a report on Monday, January 5th. Zacks Research cut Tactile Systems Technology from a “strong-buy” rating to a “hold” rating in a report on Monday, January 5th. Weiss Ratings reissued a “hold (c+)” rating on shares of Tactile Systems Technology in a research report on Monday, December 29th. Finally, Wall Street Zen upgraded Tactile Systems Technology from a “buy” rating to a “strong-buy” rating in a research note on Saturday, November 1st. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $28.75.

Insider Transactions at Tactile Systems Technology

In other news, VP Kristie Burns sold 5,139 shares of the company’s stock in a transaction that occurred on Friday, January 2nd. The stock was sold at an average price of $28.85, for a total value of $148,260.15. Following the transaction, the vice president owned 72,401 shares of the company’s stock, valued at approximately $2,088,768.85. This represents a 6.63% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 2.50% of the stock is owned by company insiders.

Institutional Trading of Tactile Systems Technology

Several institutional investors have recently added to or reduced their stakes in the company. Russell Investments Group Ltd. increased its position in Tactile Systems Technology by 1,594.4% during the 3rd quarter. Russell Investments Group Ltd. now owns 2,118 shares of the company’s stock worth $29,000 after buying an additional 1,993 shares during the period. Caitong International Asset Management Co. Ltd acquired a new position in shares of Tactile Systems Technology in the fourth quarter valued at about $32,000. Quarry LP increased its position in Tactile Systems Technology by 302.6% during the third quarter. Quarry LP now owns 2,319 shares of the company’s stock worth $32,000 after acquiring an additional 1,743 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC acquired a new stake in Tactile Systems Technology in the 4th quarter worth about $36,000. Finally, Global Retirement Partners LLC acquired a new stake in Tactile Systems Technology in the 4th quarter worth about $37,000. 83.43% of the stock is currently owned by institutional investors.

Tactile Systems Technology Stock Performance

The stock’s fifty day simple moving average is $28.98 and its 200-day simple moving average is $21.22. The stock has a market cap of $626.64 million, a P/E ratio of 36.43 and a beta of 0.96.

About Tactile Systems Technology

Tactile Systems Technology, Inc, headquartered in Plymouth, Minnesota, is a medical device company specializing in the design, manufacture and marketing of home-use pneumatic compression therapy systems for the treatment of lymphedema and other chronic edema-related conditions. Using proprietary software and patented pump technologies, the company’s platforms are designed to improve patient outcomes through sequential pressure treatment that promotes fluid mobilization and enhanced lymphatic function.

At the core of Tactile Systems’ product portfolio is the Flexitouch® system, a programmable pneumatic pump and garment system approved for home use, and the Aria® device, which features an intuitive touchscreen interface and advanced garment design.