Tandem Diabetes Care (NASDAQ:TNDM) Shares Gap Down Following Analyst Downgrade

Key Points

• Tandem shares fell after Wells Fargo cut its price target from $27 to $25, while keeping an Overweight rating; the stock opened at $15.83, down from its prior close of $17.99. Analysts overall have a Hold consensus and an average price target of $27.08.
• Third-quarter revenue rose 13.8% year over year to $283.7 million, beating estimates, and the loss of $0.10 per share was narrower than expected. Gross margin also improved to 57%.
• Management forecast 2026 sales of $1.065 billion to $1.085 billion and named Jeannette Bankes as CEO; current CEO John Sheridan plans to retire at the end of 2026.

Shares of Tandem Diabetes Care, Inc. (NASDAQ:TNDM - Get Free Report) gapped down prior to trading on Friday after Wells Fargo & Company lowered their price target on the stock from $27.00 to $25.00. The stock had previously closed at $17.99, but opened at $15.83. Wells Fargo & Company currently has an overweight rating on the stock. Tandem Diabetes Care shares last traded at $16.5730, with a volume of 770,988 shares traded.

A number of other brokerages have also recently commented on TNDM. Royal Bank Of Canada reiterated an "outperform" rating and set a $26.00 price target (down from $30.00) on shares of Tandem Diabetes Care in a research report on Friday, August 7th. Mizuho set a $20.00 target price on Tandem Diabetes Care in a research note on Friday. Oppenheimer restated an "outperform" rating on shares of Tandem Diabetes Care in a report on Friday, August 7th. UBS Group started coverage on Tandem Diabetes Care in a report on Tuesday, July 28th. They set a "neutral" rating and a $18.00 target price for the company. Finally, Citigroup reduced their price target on Tandem Diabetes Care from $24.00 to $20.00 and set a "neutral" rating on the stock in a research report on Wednesday, September 30th. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, twelve have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $27.08.

Insiders Place Their Bets

In other Tandem Diabetes Care news, Director Christopher J. Twomey sold 1,700 shares of the company's stock in a transaction that occurred on Tuesday, October 27th. The stock was sold at an average price of $19.15, for a total transaction of $32,555.00. Following the transaction, the director owned 24,434 shares in the company, valued at approximately $467,911.10. This represents a 6.50% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 2.10% of the company's stock.

Key Stories Impacting Tandem Diabetes Care

Here are the key news stories impacting Tandem Diabetes Care this week:

• Positive Sentiment: Q3 revenue was $283.7 million, up 13.8% year over year and above analyst estimates of $265.9 million. The company’s loss of $0.10 per share was also narrower than expected. Tandem Q3 2026 financial results
• Positive Sentiment: Gross margin improved to 57%, up 2.7 percentage points from a year earlier. Tandem also reported about 33,000 pump shipments, supporting evidence of business growth. Tandem Q3 2026 financial results
• Positive Sentiment: Management forecast 2026 sales of $1.065 billion to $1.085 billion, giving investors a full-year revenue range to assess against the company’s growth trajectory. 2026 sales outlook and CEO transition
• Neutral Sentiment: Tandem named Jeannette Bankes as president and CEO as John Sheridan plans to retire at the end of 2026. Naming a successor provides advance notice, though investors may watch for details on strategic continuity during the transition. Tandem names Jeannette Bankes CEO

Institutional Trading of Tandem Diabetes Care

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. First Light Asset Management LLC increased its holdings in shares of Tandem Diabetes Care by 157.4% during the second 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. Defilade Capital Management L.P. purchased a new stake in Tandem Diabetes Care during the 1st quarter valued at $14,606,000. Quantinno Capital Management LP boosted its position in shares of Tandem Diabetes Care by 123.5% during the first quarter. Quantinno Capital Management LP now owns 653,870 shares of the medical device company's stock valued at $12,535,000 after buying an additional 361,361 shares during the last quarter. First Trust Advisors LP purchased a new stake in shares of Tandem Diabetes Care during the 1st quarter valued at about $6,570,000. Finally, Principal Financial Group Inc. boosted its holdings in Tandem Diabetes Care by 2.2% in the first quarter. Principal Financial Group Inc. now owns 331,541 shares of the medical device company's stock worth $6,356,000 after purchasing an additional 7,279 shares during the last quarter.

Tandem Diabetes Care Stock Down 6.6%

The company has a fifty day moving average of $17.74 and a 200 day moving average of $18.90. The company has a market cap of $1.17 billion, a P/E ratio of -18.18 and a beta of 1.59. The company has a quick ratio of 2.65, a current ratio of 3.18 and a debt-to-equity ratio of 4.62.

Tandem Diabetes Care (NASDAQ:TNDM - Get Free Report) last released its quarterly earnings results on Thursday, November 5th. The medical device company reported ($0.10) EPS for the quarter, beating the consensus estimate of ($0.25) by $0.15. Tandem Diabetes Care had a negative net margin of 6.08% and a negative return on equity of 45.97%. The firm had revenue of $283.69 million during the quarter, compared to analyst estimates of $265.85 million. During the same quarter in the prior year, the firm earned ($0.31) EPS. The business's revenue for the quarter was up 13.8% compared to the same quarter last year. On average, research analysts anticipate that Tandem Diabetes Care, Inc. will post -0.66 earnings per share for the current fiscal year.

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 help automate and simplify insulin therapy while supporting integration with continuous glucose monitoring (CGM) technology.

Tandem's product portfolio includes the t:slim X2 Insulin Pump and the compact Tandem Mobi system, along with insulin cartridges, infusion sets, accessories and diabetes management software.

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