TransMedics Director Sells 4,142 Shares as Wall Street Maintains Buy Ratings: Is the Stock Still a Buy?

Director Edward Basile executed an exercise of 4,142 options with immediate sale of all resulting shares in TransMedics Group (NASDAQ:TMDX) on October 29, 2025, as disclosed in the SEC Form 4 filing.

Transaction summary

Transaction value is based on the SEC Form 4 weighted average purchase price of $130.45 as of October 29, 2025.

Key questions

What was the nature and timing of this transaction?
This was an exercise of 4,142 stock options, with all resulting shares immediately sold on October 29, 2025.

How significant was this sale relative to Basile’s remaining position?
The sale represented 59.1% of Edward M Basile’s direct holdings immediately prior to the transaction, reducing his direct ownership to 2,866 shares, representing 0.0084% of shares outstanding as of the latest reported data.

How does this transaction size compare to Basile’s historical selling patterns?
Recent sales by Basile have involved increasing proportions of holdings traded, with a median sell size of 5,500 shares and a median of 29.02% of holdings per transaction from August 2024 to October 2025. The October 29, 2025 sale exceeded this, marking the highest proportion of direct holdings sold in a single transaction (59.1%) during the analyzed period.

What is the market context for this sale?
Shares were sold at approximately $130.45 per share on October 29, 2025. As of October 29, 2025, TransMedics Group shares had delivered a 51.8% total return over the prior year, and the current price as of November 3, 2025, is $124.72.

Company overview

Note: 1-year price performance is calculated using December 6, 2025 as the reference date.

Company snapshot

TransMedics Group offers the Organ Care System (OCS), a proprietary portable organ perfusion and monitoring platform for donor hearts, lungs, and livers. The company’s business model centers on selling OCS devices and generating recurring revenue from consumables used in organ preservation procedures. Its primary customers are hospitals and transplant centers in the United States and internationally, serving patients with end-stage organ failure.

The company is a leading innovator in organ transplant technology, providing advanced solutions that replicate near-physiologic conditions for donor organs outside the human body. Its differentiated technology and focus on clinical outcomes position it as a key player in the evolving organ transplant ecosystem.

Foolish take

TransMedics is a pioneer in the medical device space and a stock Wall Street analysts consistently recommend. The company's Organ Care System (OCS) has transformed the world of transplant logistics, particularly for hearts and lungs. Its warm perfusion technology is approved by the U.S. Food and Drug Administration and can handle multiple organs, and following strong adoption and FDA approvals, the stock has delivered impressive returns, up 103% this year.

Director Edward Basile's transaction at TransMedics represents a routine "cashless exercise," which is a common move where executives convert stock options into shares and immediately sell them, often to cover taxes or diversify holdings. At 4,142 shares, this sale is relatively modest and shouldn't raise any red flags for investors.

TransMedics delivered impressive third-quarter results in October, with revenue up 32% and profit margins expanding significantly. Analysts give the stock a buy rating, with the company's dedicated airline fleet and future products like kidney transplant technology adding to the bullish case. However, at a price-to-earnings ratio of 50, a lot of this good news is already baked into the price. Most analysts see limited short-term upside from here, meaning TransMedics is a good stock to buy only if you intend to hold it for the long term.

Glossary

Form 4: A required SEC filing disclosing insider transactions in a company’s securities.

Option exercise: The act of converting stock options into actual shares, typically at a predetermined price.

Insider transaction: A trade in a company’s securities by an executive, director, or significant shareholder.

Weighted average purchase price: The average price paid per share, weighted by the number of shares bought at each price.

Direct ownership: Shares held directly by an individual, not through trusts or indirect arrangements.

Outstanding shares: The total number of a company’s shares currently held by all shareholders.

Total return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.

Perfusion: The process of delivering fluid, such as blood, to tissues or organs.

Organ Care System (OCS): A device that preserves donor organs by maintaining near-physiologic conditions outside the body.

Proprietary platform: A technology or system owned and controlled by a specific company.

TTM: The 12-month period ending with the most recent quarterly report.