Tandem Diabetes Care, Inc. (NASDAQ:TNDM) Sees Significant Drop in Short Interest

Key Points

• Short interest in Tandem Diabetes Care, Inc. decreased significantly by 34.1% in August, with a total of 5,770,000 shares shorted as of the 15th.
• Analysts have downgraded Tandem's rating, with the Royal Bank of Canada cutting its price target from $45.00 to $25.00, while Lake Street Capital moved from a "buy" to a "hold" and reduced its target from $75.00 to $12.00.
• Insiders are actively buying shares, with CFO Leigh Vosseller purchasing 13,720 shares and CEO John F. Sheridan acquiring 10,000 shares, indicating confidence in the company's future.

Tandem Diabetes Care, Inc. (NASDAQ:TNDM - Get Free Report) was the recipient of a significant drop in short interest during the month of August. As of August 15th, there was short interest totaling 5,770,000 shares, a drop of 34.1% from the July 31st total of 8,750,000 shares. Based on an average trading volume of 1,980,000 shares, the days-to-cover ratio is presently 2.9 days. Based on an average trading volume of 1,980,000 shares, the days-to-cover ratio is presently 2.9 days.

Tandem Diabetes Care Stock Down 4.1%

Shares of NASDAQ:TNDM traded down $0.52 during trading on Friday, hitting $12.27. The company's stock had a trading volume of 2,114,600 shares, compared to its average volume of 1,733,642. The company has a debt-to-equity ratio of 2.32, a quick ratio of 1.88 and a current ratio of 2.44. Tandem Diabetes Care has a fifty-two week low of $9.98 and a fifty-two week high of $47.60. The stock's 50-day moving average price is $13.67 and its two-hundred day moving average price is $17.75. The company has a market capitalization of $829.08 million, a PE ratio of -3.97 and a beta of 1.45.

Tandem Diabetes Care (NASDAQ:TNDM - Get Free Report) last released its quarterly earnings results on Wednesday, August 6th. The medical device company reported ($0.48) EPS for the quarter, missing the consensus estimate of ($0.40) by ($0.08). Tandem Diabetes Care had a negative return on equity of 65.40% and a negative net margin of 20.51%.The business had revenue of $240.68 million during the quarter, compared to analyst estimates of $238.39 million. During the same quarter last year, the firm posted ($0.47) EPS. The company's revenue was up 8.5% compared to the same quarter last year. As a group, sell-side analysts expect that Tandem Diabetes Care will post -1.68 EPS for the current year.

Insiders Place Their Bets

In other news, CEO John F. Sheridan bought 10,000 shares of Tandem Diabetes Care stock in a transaction that occurred on Monday, August 11th. The shares were purchased at an average price of $10.23 per share, for a total transaction of $102,300.00. Following the completion of the acquisition, the chief executive officer owned 106,327 shares of the company's stock, valued at $1,087,725.21. The trade was a 10.38% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Leigh Vosseller bought 13,720 shares of Tandem Diabetes Care stock in a transaction that occurred on Friday, August 8th. The stock was purchased at an average price of $10.89 per share, for a total transaction of $149,410.80. Following the acquisition, the chief financial officer directly owned 25,580 shares of the company's stock, valued at $278,566.20. The trade was a 115.68% increase in their position. The disclosure for this purchase can be found here. 1.90% of the stock is currently owned by company insiders.

Institutional Trading of Tandem Diabetes Care

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Assetmark Inc. increased its holdings in Tandem Diabetes Care by 42.9% in the first quarter. Assetmark Inc. now owns 1,750 shares of the medical device company's stock valued at $34,000 after buying an additional 525 shares during the last quarter. Cetera Investment Advisers increased its holdings in Tandem Diabetes Care by 7.4% in the fourth quarter. Cetera Investment Advisers now owns 14,185 shares of the medical device company's stock valued at $511,000 after buying an additional 981 shares during the last quarter. KBC Group NV increased its holdings in Tandem Diabetes Care by 0.7% in the first quarter. KBC Group NV now owns 193,808 shares of the medical device company's stock valued at $3,713,000 after buying an additional 1,329 shares during the last quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS increased its holdings in Tandem Diabetes Care by 8.8% in the second quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 17,101 shares of the medical device company's stock valued at $319,000 after buying an additional 1,384 shares during the last quarter. Finally, Police & Firemen s Retirement System of New Jersey increased its holdings in Tandem Diabetes Care by 10.1% in the second quarter. Police & Firemen s Retirement System of New Jersey now owns 15,299 shares of the medical device company's stock valued at $285,000 after buying an additional 1,399 shares during the last quarter.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on the company. Oppenheimer initiated coverage on Tandem Diabetes Care in a report on Monday. They issued an "outperform" rating and a $22.00 target price on the stock. Royal Bank Of Canada reduced their price objective on Tandem Diabetes Care from $45.00 to $25.00 and set an "outperform" rating on the stock in a research note on Thursday, August 7th. Piper Sandler cut Tandem Diabetes Care from an "overweight" rating to a "neutral" rating and reduced their price objective for the stock from $30.00 to $14.00 in a research note on Thursday, August 7th. Citigroup boosted their price objective on Tandem Diabetes Care from $10.35 to $11.00 and gave the stock a "neutral" rating in a research note on Thursday, August 21st. Finally, Wall Street Zen cut Tandem Diabetes Care from a "hold" rating to a "sell" rating in a research note on Saturday, June 21st. Five equities research analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $22.44.

About Tandem Diabetes Care

Tandem Diabetes Care, Inc, a medical device company, designs, develops, and commercializes technology solutions for people living with diabetes in the United States and internationally. The company's flagship product is the t:slim X2 insulin delivery system, a pump platform for managing insulin delivery and display continuous glucose monitoring sensor information directly on the pump home screen; and Tandem Mobi insulin pump, an automated insulin delivery system.