Tandem Diabetes Care (NASDAQ:TNDM) Sees Large Volume Increase - Should You Buy?

Key Points

• Tandem Diabetes Care shares rose to $16.27 as trading volume increased 33% to nearly 2.8 million shares.
• Analyst sentiment is mixed, with the stock receiving an overall “Hold” rating and a consensus price target of $27.08, well above its recent price.
• The company slightly beat quarterly EPS expectations and grew revenue 5.8% year over year, but remained unprofitable with a negative net margin and return on equity.

Tandem Diabetes Care, Inc. (NASDAQ:TNDM - Get Free Report) shares saw an uptick in trading volume on Thursday. 2,799,359 shares were traded during mid-day trading, an increase of 33% from the previous session's volume of 2,110,586 shares. The stock last traded at $16.27 and had previously closed at $16.01.

Analysts Set New Price Targets

A number of brokerages have weighed in on TNDM. William Blair initiated coverage on Tandem Diabetes Care in a research note on Friday, August 21st. They set an "outperform" rating for the company. Barclays upgraded Tandem Diabetes Care to a "hold" rating in a report on Wednesday, October 7th. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Tandem Diabetes Care in a research report on Tuesday, September 8th. Deutsche Bank Aktiengesellschaft assumed coverage on Tandem Diabetes Care in a research note on Tuesday, June 23rd. They set a "hold" rating and a $15.50 target price for the company. Finally, Mizuho set a $18.00 price target on shares of Tandem Diabetes Care in a research report on Tuesday. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, twelve have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $27.08.

Tandem Diabetes Care Stock Performance

The stock's 50-day moving average price is $19.13 and its 200-day moving average price is $17.96. The company has a current ratio of 3.18, a quick ratio of 2.65 and a debt-to-equity ratio of 4.62. The company has a market capitalization of $1.11 billion, a P/E ratio of -17.17 and a beta of 1.66.

Tandem Diabetes Care (NASDAQ:TNDM - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The medical device company reported ($0.31) earnings per share for the quarter, beating analysts' consensus estimates of ($0.32) by $0.01. The business had revenue of $254.56 million during the quarter, compared to the consensus estimate of $254.99 million. Tandem Diabetes Care had a negative net margin of 6.08% and a negative return on equity of 45.97%. The company's revenue for the quarter was up 5.8% compared to the same quarter last year. During the same quarter in the prior year, the firm earned ($0.78) EPS. As a group, equities analysts expect that Tandem Diabetes Care, Inc. will post -0.66 EPS for the current year.

Institutional Investors Weigh In On Tandem Diabetes Care

Hedge funds have recently added to or reduced their stakes in the stock. First Light Asset Management LLC raised its stake in Tandem Diabetes Care by 157.4% during the 2nd quarter. First Light Asset Management LLC now owns 3,383,553 shares of the medical device company's stock valued at $51,058,000 after acquiring an additional 2,068,838 shares in the last quarter. Engineers Gate Manager LP bought a new position in shares of Tandem Diabetes Care during the 2nd quarter valued at about $976,000. Integrated Wealth Concepts LLC bought a new stake in Tandem Diabetes Care during the second quarter worth approximately $33,000. Squarepoint Ops LLC bought a new stake in shares of Tandem Diabetes Care during the 2nd quarter worth $3,280,000. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in shares of Tandem Diabetes Care in the 2nd quarter valued at $395,000.

Tandem Diabetes Care Company Profile

Tandem Diabetes Care, Inc is a medical device company focused on developing and commercializing advanced insulin delivery systems for people with diabetes. The company's products are designed to work with continuous glucose monitoring (CGM) systems and digital health tools to help automate and personalize insulin therapy.

Tandem's product portfolio includes the t:slim X2 insulin pump, which features a rechargeable design and software that supports automated insulin delivery. The company also offers the t:slim X2 pump with Control-IQ technology, an algorithm designed to adjust insulin delivery based on CGM readings, and the compact Tandem Mobi pump.

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