Why TransMedics Stock Plunged in October
Shares of TransMedics (NASDAQ: TMDX), a biotech company that specializes in organ transportation, were tumbling last month after it issued disappointing results in its third-quarter update.
TransMedics shares had been soaring prior to the report as investors saw it as a disruptor in the industry, and it has put up impressive top-line growth.
The third-quarter results called the valuation into question as the company's growth slowed faster than expected. According to data from S&P Global Market Intelligence, the stock finished the month down 48%. As you can see from the chart below, the stock declined through the first few weeks of the month and then plunged on the earnings report at the end of October.
Source Fool.com
