Tandem Diabetes Care (NASDAQ:TNDM) Shares Up 5.6% - Should You Buy?

Key Points

• Tandem Diabetes Care shares rose 5.6% to approximately $17.19, although trading volume was 82% below the average session volume.
• Analyst sentiment is mixed: the stock has an overall “Hold” consensus rating and a $29.34 average price target, with ratings ranging from Strong Buy to Sell.
• The company slightly exceeded quarterly EPS expectations, reporting a loss of $0.31 per share, while revenue reached $254.56 million—up 5.8% year over year but just below estimates.

Shares of Tandem Diabetes Care, Inc. (NASDAQ:TNDM - Get Free Report) traded up 5.6% during mid-day trading on Wednesday . The company traded as high as $17.04 and last traded at $17.19. Approximately 377,871 shares traded hands during mid-day trading, a decline of 82% from the average session volume of 2,072,623 shares. The stock had previously closed at $16.28.

Wall Street Analyst Weigh In

Several research firms have weighed in on TNDM. Oppenheimer reiterated an "outperform" rating on shares of Tandem Diabetes Care in a research report on Friday, August 7th. Zacks Research cut shares of Tandem Diabetes Care from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, June 10th. William Blair began coverage on shares of Tandem Diabetes Care in a research note on Friday, August 21st. They issued an "outperform" rating on the stock. Citigroup reissued a "neutral" rating and issued a $21.00 price target (up from $17.00) on shares of Tandem Diabetes Care in a research note on Friday, August 7th. Finally, Royal Bank Of Canada reissued an "outperform" rating and issued a $26.00 price target (down from $30.00) on shares of Tandem Diabetes Care in a report on Friday, August 7th. One investment analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $29.34.

Tandem Diabetes Care Price Performance

The company has a debt-to-equity ratio of 4.62, a quick ratio of 2.65 and a current ratio of 3.18. The stock has a market capitalization of $1.20 billion, a P/E ratio of -18.56 and a beta of 1.55. The firm has a 50-day moving average price of $19.51 and a 200 day moving average price of $18.98.

Tandem Diabetes Care (NASDAQ:TNDM - Get Free Report) last released its earnings results on Thursday, August 6th. The medical device company reported ($0.31) earnings per share for the quarter, topping analysts' consensus estimates of ($0.32) by $0.01. Tandem Diabetes Care had a negative return on equity of 45.97% and a negative net margin of 6.08%.The company had revenue of $254.56 million during the quarter, compared to the consensus estimate of $254.99 million. During the same quarter in the previous year, the company posted ($0.78) EPS. Tandem Diabetes Care's quarterly revenue was up 5.8% compared to the same quarter last year. On average, analysts expect that Tandem Diabetes Care, Inc. will post -0.65 EPS for the current year.

Hedge Funds Weigh In On Tandem Diabetes Care

A number of large investors have recently added to or reduced their stakes in TNDM. OP Asset Management Ltd purchased a new stake in shares of Tandem Diabetes Care during the first quarter worth about $35,000. Integrated Wealth Concepts LLC bought a new position in Tandem Diabetes Care during the 2nd quarter valued at approximately $33,000. Creative Financial Designs Inc. ADV lifted its holdings in Tandem Diabetes Care by 36.0% in the 4th quarter. Creative Financial Designs Inc. ADV now owns 3,431 shares of the medical device company's stock worth $75,000 after buying an additional 909 shares during the period. Leonteq Securities AG bought a new stake in shares of Tandem Diabetes Care in the 4th quarter worth approximately $172,000. Finally, Prosperitas Financial LLC bought a new stake in shares of Tandem Diabetes Care in the 2nd quarter worth approximately $151,000.

Tandem Diabetes Care Company Profile

Tandem Diabetes Care, Inc is a medical technology company that develops and commercializes insulin-delivery systems for people with diabetes. Headquartered in San Diego, California, the company focuses on combining wearable insulin pumps, continuous glucose monitoring connectivity and automated insulin-delivery software to help users manage their blood glucose levels.

Its product portfolio includes the t:slim X2 insulin pump, a touchscreen pump designed for integration with compatible continuous glucose monitors, and the smaller, wearable t:slim Mobi pump.

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