The Pros and Cons of Investing in TransEnterix, Inc. (TRXC)

On December 03, 2019, TransEnterix, Inc. (NYSE:TRXC) shares lost -3.62% or -0.01 points to close at $0.19 with a heavy trading volume of 3.875 million shares. It opened the trading session at $0.2, the shares rose to $0.2 and dropped to $0.19, the range by which the price of stock traded the whole day. The company now has a market cap of $48.75 million and currently has 258.21 million outstanding shares. TransEnterix, Inc. (TRXC) stock has plunged -21.07 percent of market value in 21 trading days.

TRXC stock’s trailing 3-year beta is 2.42, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was -$0.65 share in the trailing 52 weeks. The stock’s value fallen -91.65 percent year to date (YTD) compared to a decline of -93.93 percent in 52 week’s period. The firm’s shares are still trading -94.78 percent below its 1-year high of $3.62 and 4.02 percent up from 52-week low of $0.18. The average consensus ranking on the company is 2, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a buy.

TransEnterix, Inc. (TRXC) is most likely going to rise 600 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $1.5-month high price target. This represents a whopping 689.47 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $1.5, which means a return possibility of 689.47 percent in comparison with the closing price of the stock of $0.19 on December 03. The lowest price set for the stock is $1.5 — just above 689.47 percent from TRXC share price now.

Past records have indicated that shares in TransEnterix, Inc. declined on 12 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of TRXC’s Q4 earnings on March 04. Analysts are predicting revenue to suffer decline of -23.6 percent to $5.75M in the financial fourth quarter, while EPS will soar by about 0 percent to -$0.07 per share. In the last quarter, it earnings of -$0.09 per share came worse than the -$0.08333, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $7.52M, topping the $7.35M analysts had expected. Earnings are seen to rise by 69.4 percent this year, 33.3 percent in the coming year.

Let’s take a glimpse at some insider activity at TransEnterix, Inc. (NYSE:TRXC) and observe the pattern. The earliest insider trade happened on 02/22/2019. SLATTERY JOSEPH P parted with a total of 88.87 thousand shares of the firm at average share price of $3.25. The total amount for the sale was set at $288.83 thousand. On completing this exchange, the EVP and CFO account balance was 25 thousand shares. The stock lost -93.85 percent from that insider sale. On 10/02/2018, SLATTERY JOSEPH P, EVP and CFO, did a sale of 64.65 thousand shares at a price of $5.74 per share. This got rid of 371.1 thousand shares from the insider’s fortune and the stock experienced a -96.52 percent retreat in price since the news became public. This exchange saw 25 thousand shares get out from the EVP and CFO account.

On 09/27/2018, Director Starling William N JR recorded a sale transaction valued at $22.7 million. The sale at $6.28 a share has eliminated 3.61 million shares from the insider’s portfolio position. Meanwhile, shares price witnessed -96.82 percent decrease since the transaction reporting date. The company insider is left with 2.22 million shares remaining in the account. SLATTERY JOSEPH P, who works as EVP and CFO at the company, performed a sale of 4.92 thousand shares in a transaction worth $34.62 thousand. The disposal recorded on 09/25/2018 was priced at $7.03 per share. The stock price plunged -97.16 percent since the transaction. SLATTERY JOSEPH P currently holds a stake of 25 thousand in TRXC stock which is worth $4.75 thousand after the insider selling.

The stock is lingering around the initial support level of $0.18. After this, the following support is at the zone of $0.18. Up until the time the TRXC stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 28.22 on the daily chart, and this may be a cause for comfort. In case the price goes below $0.18 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $0.2 level may cause a pull-back move approaching $0.2 mark.

The industry TRXC deals with has an average P/E of 51.9. Its P/B ratio is standing at 0.8X compared to the 4.6 industry average. It is additionally sporting a 2.7 on the Price-to-Sales ratio, compared to the industry’s P/S average of 5.2. TransEnterix, Inc. has a -0.8% gross profit margin.