Insulet (NASDAQ:PODD) Shares Gap Up After Strong Earnings

Key Points

• Insulet Corporation experienced a significant share price increase after reporting better-than-expected earnings, with an EPS of $1.17 compared to the consensus estimate of $0.93.
• Analysts have shown confidence in the stock, with Wolfe Research upgrading it to "outperform" and setting a target price of $350.00, reflecting strong market support for the company.
• Insider trading activity revealed that Senior Vice President John W. Kapples sold over 5,000 shares of Insulet, a move that decreased his ownership by 18.55%.

Insulet Corporation (NASDAQ:PODD - Get Free Report)'s share price gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $277.30, but opened at $317.00. Insulet shares last traded at $308.76, with a volume of 236,204 shares traded.

The medical instruments supplier reported $1.17 earnings per share for the quarter, beating analysts' consensus estimates of $0.93 by $0.24. Insulet had a return on equity of 22.25% and a net margin of 18.29%. During the same quarter in the prior year, the company earned $0.55 EPS. The business's quarterly revenue was up 32.9% compared to the same quarter last year.

Analyst Ratings Changes

Several brokerages have recently issued reports on PODD. Wolfe Research upgraded Insulet from a "peer perform" rating to an "outperform" rating and set a $350.00 price objective for the company in a research note on Tuesday, May 13th. Barclays raised their price objective on Insulet from $234.00 to $266.00 and gave the company an "equal weight" rating in a report on Wednesday, April 30th. Wells Fargo & Company set a $322.00 price target on Insulet in a research note on Monday, April 28th. Truist Financial started coverage on Insulet in a research report on Monday, June 16th. They set a "buy" rating and a $365.00 price objective on the stock. Finally, Citigroup reiterated a "buy" rating on shares of Insulet in a research report on Tuesday, July 8th. Four equities research analysts have rated the stock with a hold rating and fifteen have issued a buy rating to the stock. According to data from MarketBeat, Insulet presently has a consensus rating of "Moderate Buy" and an average target price of $321.00.

Insider Activity

In related news, SVP John W. Kapples sold 5,278 shares of the company's stock in a transaction dated Wednesday, May 14th. The stock was sold at an average price of $318.47, for a total value of $1,680,884.66. Following the completion of the sale, the senior vice president directly owned 23,180 shares of the company's stock, valued at $7,382,134.60. This represents a 18.55% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 0.39% of the company's stock.

Institutional Trading of Insulet

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. GAMMA Investing LLC lifted its holdings in shares of Insulet by 27,298.6% in the 1st quarter. GAMMA Investing LLC now owns 664,141 shares of the medical instruments supplier's stock valued at $1,744,100,000 after buying an additional 661,717 shares during the period. American Century Companies Inc. grew its position in Insulet by 34.8% during the first quarter. American Century Companies Inc. now owns 1,152,606 shares of the medical instruments supplier's stock valued at $302,686,000 after acquiring an additional 297,734 shares during the period. Nuveen LLC purchased a new stake in Insulet during the first quarter valued at about $74,163,000. Kayne Anderson Rudnick Investment Management LLC boosted its position in shares of Insulet by 1,316.5% in the first quarter. Kayne Anderson Rudnick Investment Management LLC now owns 193,511 shares of the medical instruments supplier's stock worth $50,818,000 after buying an additional 179,850 shares during the period. Finally, Vanguard Group Inc. boosted its holdings in Insulet by 2.1% in the first quarter. Vanguard Group Inc. now owns 8,668,952 shares of the medical instruments supplier's stock valued at $2,276,553,000 after purchasing an additional 178,976 shares during the last quarter.

Insulet Price Performance

The company has a quick ratio of 3.63, a current ratio of 4.47 and a debt-to-equity ratio of 1.21. The company has a 50 day simple moving average of $299.88 and a 200-day simple moving average of $282.59. The stock has a market cap of $21.77 billion, a price-to-earnings ratio of 55.44, a PEG ratio of 2.51 and a beta of 1.35.

About Insulet

Insulet Corporation develops, manufactures, and sells insulin delivery systems for people with insulin-dependent diabetes. The company's Omnipod platform includes the Omnipod 5 Automated Insulin Delivery System (Omnipod 5) which includes a proprietary AID algorithm embedded in the Pod that integrates with a third-party continuous glucose monitor to obtain glucose values through wireless bluetooth communication; Omnipod DASH that features a bluetooth enabled Pod that is controlled by a smartphone-like Personal Diabetes Manager with a color touch screen user interface; and Omnipod GO, a standalone, wearable, insulin delivery system that provides a fixed rate of continuous rapid-acting insulin for 72 hours.

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