Tandem Diabetes Care (NASDAQ:TNDM) Shares Gap Up - Time to Buy?

Key Points

• Tandem Diabetes Care shares jumped, opening at $19.00 after closing at $17.51 and later trading at $19.20.
• The company beat quarterly earnings and revenue expectations: adjusted loss was $0.10 per share versus a forecast loss of $0.25, while revenue reached $283.69 million, up 13.8% year over year.
• Analyst sentiment was mixed, with a consensus Hold rating and an average price target of $27.18; recent target changes ranged from $20 to $25.

Shares of Tandem Diabetes Care, Inc. (NASDAQ:TNDM - Get Free Report) gapped up before the market opened on Friday. The stock had previously closed at $17.51, but opened at $19.00. Tandem Diabetes Care shares last traded at $19.20, with a volume of 552,679 shares.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on TNDM shares. Wells Fargo & Company dropped their target price on shares of Tandem Diabetes Care from $27.00 to $25.00 and set an "overweight" rating for the company in a research report on Friday, November 6th. UBS Group initiated coverage on shares of Tandem Diabetes Care in a research report on Tuesday, July 28th. They set a "neutral" rating and a $18.00 price target on the stock. Barclays increased their price target on shares of Tandem Diabetes Care from $18.00 to $20.00 and gave the stock an "equal weight" rating in a research report on Friday, November 6th. Citigroup decreased their price target on Tandem Diabetes Care from $24.00 to $20.00 and set a "neutral" rating for the company in a research note on Wednesday, September 30th. Finally, Weiss Ratings reissued a "sell (e+)" rating on shares of Tandem Diabetes Care in a report on Tuesday, September 8th. One investment analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $27.18.

Tandem Diabetes Care Trading Up 11.5%

The stock has a market cap of $1.36 billion, a price-to-earnings ratio of -27.06 and a beta of 1.59. The business's fifty day simple moving average is $17.41 and its 200 day simple moving average is $18.84. The company has a debt-to-equity ratio of 4.47, a current ratio of 3.20 and a quick ratio of 2.65.

Tandem Diabetes Care (NASDAQ:TNDM - Get Free Report) last released its earnings results on Thursday, November 5th. The medical device company reported ($0.10) earnings per share for the quarter, beating the consensus estimate of ($0.25) by $0.15. The firm had revenue of $283.69 million during the quarter, compared to analyst estimates of $265.85 million. Tandem Diabetes Care had a negative net margin of 4.58% and a negative return on equity of 35.61%. The firm's revenue for the quarter was up 13.8% compared to the same quarter last year. During the same quarter in the previous year, the firm earned ($0.31) earnings per share. On average, research analysts predict that Tandem Diabetes Care, Inc. will post -0.61 EPS for the current year.

Insider Buying and Selling at Tandem Diabetes Care

In related news, Director Christopher J. Twomey sold 1,700 shares of the business's stock in a transaction dated Tuesday, October 27th. The shares were sold at an average price of $19.15, for a total transaction of $32,555.00. Following the completion of the sale, the director owned 24,434 shares of the company's stock, valued at $467,911.10. This represents a 6.50% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.10% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Tandem Diabetes Care

A number of large investors have recently bought and sold shares of the business. First Light Asset Management LLC grew 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 purchasing an additional 2,068,838 shares during the last quarter. Defilade Capital Management L.P. acquired a new stake in shares of Tandem Diabetes Care during the 1st quarter worth approximately $14,606,000. Quantinno Capital Management LP raised its position in shares of Tandem Diabetes Care by 123.5% during the 1st quarter. Quantinno Capital Management LP now owns 653,870 shares of the medical device company's stock worth $12,535,000 after purchasing an additional 361,361 shares during the period. First Trust Advisors LP bought a new stake in shares of Tandem Diabetes Care in the 1st quarter worth approximately $6,570,000. Finally, GW&K Investment Management LLC lifted its holdings in shares of Tandem Diabetes Care by 13.0% in the 3rd quarter. GW&K Investment Management LLC now owns 2,903,529 shares of the medical device company's stock worth $47,357,000 after purchasing an additional 334,497 shares during the last quarter.

About Tandem Diabetes Care

Tandem Diabetes Care develops and commercializes technology for people who use insulin to manage diabetes. Its products include insulin pumps, infusion sets and related supplies, along with software for viewing and sharing diabetes-management data. The company's offerings include the t:slim X2 insulin pump and the Tandem Mobi pump, as well as Control-IQ technology, which can automatically adjust insulin delivery based on continuous glucose monitor readings when used with compatible devices. Tandem also provides mobile apps and cloud-based tools to support users and healthcare providers.

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