Insulet (NASDAQ:PODD) Sets New 52-Week Low - Time to Sell?

Key Points

• Insulet hit a new 52-week low of $186.20 on Tuesday, trading below its 50-day ($221.14) and 200-day ($270.19) moving averages on volume of about 153,325 shares.
• Analysts have trimmed ratings and price targets recently (e.g., Citigroup cut to Neutral and lowered its target to $230), but the stock's consensus remains a "Moderate Buy" with an average price target of $327.24.
• Insulet posted a Q1 beat with EPS $1.55 vs. $1.48 expected and revenue up 31.2% year-over-year to $783.8M; an insider also bought 2,030 shares while several institutions modestly increased holdings.

Insulet Corporation (NASDAQ:PODD - Get Free Report) reached a new 52-week low on Tuesday . The stock traded as low as $186.20 and last traded at $186.03, with a volume of 153325 shares trading hands. The stock had previously closed at $188.31.

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on PODD shares. Citigroup downgraded Insulet from a "buy" rating to a "neutral" rating and dropped their price objective for the company from $338.00 to $230.00 in a research note on Tuesday, April 7th. Zacks Research cut Insulet from a "strong-buy" rating to a "hold" rating in a report on Monday, January 5th. Stifel Nicolaus lowered their target price on Insulet from $370.00 to $350.00 and set a "buy" rating on the stock in a report on Wednesday, February 4th. The Goldman Sachs Group lowered their target price on Insulet from $326.00 to $277.00 and set a "buy" rating on the stock in a report on Wednesday, April 8th. Finally, Raymond James Financial lowered their target price on Insulet from $385.00 to $355.00 and set an "outperform" rating on the stock in a report on Thursday, February 19th. Eighteen equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Insulet presently has a consensus rating of "Moderate Buy" and an average price target of $327.24.

Insulet Stock Down 2.9%

The stock has a market cap of $12.66 billion, a price-to-earnings ratio of 52.23, a PEG ratio of 1.14 and a beta of 1.47. The company has a quick ratio of 2.15, a current ratio of 2.81 and a debt-to-equity ratio of 0.61. The stock has a fifty day moving average of $221.14 and a two-hundred day moving average of $270.19.

Insulet (NASDAQ:PODD - Get Free Report) last announced its quarterly earnings results on Wednesday, February 18th. The medical instruments supplier reported $1.55 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.48 by $0.07. Insulet had a return on equity of 24.90% and a net margin of 9.12%.The firm had revenue of $783.80 million during the quarter, compared to the consensus estimate of $768.31 million. During the same period in the prior year, the firm earned $1.15 EPS. The firm's quarterly revenue was up 31.2% compared to the same quarter last year. As a group, analysts predict that Insulet Corporation will post 6.16 EPS for the current fiscal year.

Insider Activity at Insulet

In related news, Director Michael R. Minogue acquired 2,030 shares of Insulet stock in a transaction on Wednesday, February 25th. The shares were bought at an average price of $246.23 per share, for a total transaction of $499,846.90. Following the completion of the purchase, the director directly owned 17,483 shares in the company, valued at $4,304,839.09. This trade represents a 13.14% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.36% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Stephens Investment Management Group LLC lifted its stake in shares of Insulet by 26.0% during the first quarter. Stephens Investment Management Group LLC now owns 177,707 shares of the medical instruments supplier's stock worth $37,290,000 after purchasing an additional 36,655 shares in the last quarter. Praxis Investment Management Inc. grew its holdings in Insulet by 43.6% during the 1st quarter. Praxis Investment Management Inc. now owns 1,278 shares of the medical instruments supplier's stock valued at $268,000 after purchasing an additional 388 shares in the last quarter. V Square Quantitative Management LLC increased its stake in Insulet by 12.8% during the 1st quarter. V Square Quantitative Management LLC now owns 2,306 shares of the medical instruments supplier's stock worth $484,000 after buying an additional 262 shares during the period. HB Wealth Management LLC lifted its holdings in Insulet by 36.7% in the 1st quarter. HB Wealth Management LLC now owns 3,221 shares of the medical instruments supplier's stock worth $676,000 after buying an additional 864 shares in the last quarter. Finally, Optas LLC lifted its holdings in Insulet by 8.8% in the 1st quarter. Optas LLC now owns 1,059 shares of the medical instruments supplier's stock worth $222,000 after buying an additional 86 shares in the last quarter.

About Insulet

Insulet Corporation is a medical device company headquartered in Acton, Massachusetts, that develops, manufactures and sells insulin-delivery systems for people with diabetes. The company's core business is the design and commercialization of its Omnipod family of tubeless, wearable insulin pumps and the consumable Pods that deliver insulin. Insulet's products aim to simplify insulin delivery for people with type 1 diabetes and insulin-requiring type 2 diabetes by offering an alternative to traditional insulin pens and tethered pump systems.

The company's product portfolio includes the Omnipod System line—disposable, waterproof Pods that adhere to the skin and deliver insulin—and the associated controllers and mobile applications used to program and monitor insulin delivery.

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