Tandem Diabetes Care (NASDAQ:TNDM) Stock Jumps 7.6% - Should You Buy?

Key Points

• Tandem Diabetes Care shares rose 7.6% to about $18.75, with trading volume roughly in line with its average.
• Analyst views remain mixed: the consensus rating is “Hold”, with an average price target of $27.08. Several firms maintain Buy or Outperform ratings, though some have recently lowered their price targets.
• The company slightly beat quarterly EPS expectations, reporting a loss of $0.31 per share, while revenue reached $254.56 million and increased 5.8% year over year. Tandem remains unprofitable, with a negative net margin and return on equity.

Tandem Diabetes Care, Inc. (NASDAQ:TNDM - Get Free Report) was up 7.6% during trading on Monday. The company traded as high as $18.86 and last traded at $18.7460. Approximately 2,231,938 shares changed hands during trading, an increase of 6% from the average session volume of 2,103,729 shares. The stock had previously closed at $17.43.

Analyst Ratings Changes

Several brokerages have weighed in on TNDM. Royal Bank Of Canada reissued an "outperform" rating and set a $26.00 price objective (down from $30.00) on shares of Tandem Diabetes Care in a report on Friday, August 7th. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Tandem Diabetes Care in a report on Tuesday, September 8th. William Blair assumed coverage on Tandem Diabetes Care in a research report on Friday, August 21st. They set an "outperform" rating for the company. Truist Financial cut their price objective on shares of Tandem Diabetes Care from $31.00 to $28.00 and set a "buy" rating on the stock in a research note on Thursday, September 24th. Finally, Oppenheimer reiterated an "outperform" rating on shares of Tandem Diabetes Care in a research report on Friday, August 7th. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $27.08.

Tandem Diabetes Care Price Performance

The company has a market capitalization of $1.32 billion, a P/E ratio of -20.28 and a beta of 1.66. The company's 50-day simple moving average is $18.33 and its 200 day simple moving average is $17.83. 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 posted its earnings results on Thursday, August 6th. The medical device company reported ($0.31) earnings per share for the quarter, beating the consensus estimate of ($0.32) by $0.01. The company had revenue of $254.56 million for the quarter, compared to analyst estimates of $254.99 million. Tandem Diabetes Care had a negative return on equity of 45.97% and a negative net margin of 6.08%. The business's revenue was up 5.8% compared to the same quarter last year. During the same period last year, the company earned ($0.78) earnings per share. As a group, sell-side analysts expect that Tandem Diabetes Care, Inc. will post -0.66 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Tandem Diabetes Care

Several hedge funds have recently modified their holdings of TNDM. Sterling Capital Management LLC raised its holdings in Tandem Diabetes Care by 849.0% in the 3rd quarter. Sterling Capital Management LLC now owns 2,325 shares of the medical device company's stock valued at $38,000 after acquiring an additional 2,080 shares in the last quarter. Inspire Investing LLC grew its position in Tandem Diabetes Care by 315.2% in the third quarter. Inspire Investing LLC now owns 183,095 shares of the medical device company's stock valued at $2,986,000 after acquiring an additional 138,998 shares during the period. First Light Asset Management LLC grew its position in Tandem Diabetes Care by 157.4% in 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 during the period. Engineers Gate Manager LP acquired a new stake in shares of Tandem Diabetes Care in the 2nd quarter valued at $976,000. Finally, Integrated Wealth Concepts LLC bought a new stake in Tandem Diabetes Care during the second quarter worth about $33,000.

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 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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