Tandem Diabetes Care (NASDAQ:TNDM) Shares Cross Above 200-Day Moving Average - Time to Sell?

Key Points

• Tandem Diabetes Care shares crossed above their 200-day moving average, trading as high as $22.92 and last changing hands at $22.72, despite being down 1.8%.
• Analyst sentiment is mixed: the stock has a consensus “Hold” rating and a $28.98 target price, with some firms maintaining bullish views while others have downgraded or set neutral ratings.
• Recent quarterly results slightly exceeded expectations, with an adjusted loss of $0.31 per share and revenue of $254.56 million, up 5.8% year over year; however, the company remains unprofitable with negative net margin and return on equity.

Shares of Tandem Diabetes Care, Inc. (NASDAQ:TNDM - Get Free Report) passed above its 200-day moving average during trading on Friday . The stock has a 200-day moving average of $18.98 and traded as high as $22.92. Tandem Diabetes Care shares last traded at $22.72, with a volume of 1,686,885 shares traded.

Analysts Set New Price Targets

Several analysts have recently weighed in on TNDM shares. Truist Financial reaffirmed a "buy" rating and issued a $31.00 target price (down from $35.00) on shares of Tandem Diabetes Care in a report on Monday, May 11th. UBS Group started coverage on shares of Tandem Diabetes Care in a report on Tuesday, July 28th. They set a "neutral" rating and a $18.00 price target for the company. Weiss Ratings downgraded shares of Tandem Diabetes Care from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Thursday, June 11th. Zacks Research lowered Tandem Diabetes Care from a "strong-buy" rating to a "hold" rating in a report on Wednesday, June 10th. Finally, Royal Bank Of Canada reiterated an "outperform" rating and set a $26.00 target price (down from $30.00) on shares of Tandem Diabetes Care in a research report on Friday, August 7th. One investment analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Tandem Diabetes Care has a consensus rating of "Hold" and a consensus target price of $28.98.

Tandem Diabetes Care Stock Down 1.8%

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 company has a market capitalization of $1.58 billion, a PE ratio of -24.43 and a beta of 1.54. The firm's 50-day simple moving average is $17.39 and its 200 day simple moving average is $18.98.

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

Institutional Investors Weigh In On Tandem Diabetes Care

A number of hedge funds and other institutional investors have recently modified their holdings of TNDM. Caitong International Asset Management Co. Ltd boosted its stake in shares of Tandem Diabetes Care by 200.0% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 2,205 shares of the medical device company's stock worth $27,000 after acquiring an additional 1,470 shares in the last quarter. Smartleaf Asset Management LLC grew its holdings in shares of Tandem Diabetes Care by 80.5% in the 4th quarter. Smartleaf Asset Management LLC now owns 1,330 shares of the medical device company's stock worth $30,000 after acquiring an additional 593 shares during the period. OP Asset Management Ltd purchased a new position in Tandem Diabetes Care in the 1st quarter valued at approximately $35,000. Quarry LP increased its stake in Tandem Diabetes Care by 2,597.1% in the 3rd quarter. Quarry LP now owns 3,695 shares of the medical device company's stock valued at $45,000 after purchasing an additional 3,558 shares in the last quarter. Finally, Creative Financial Designs Inc. ADV raised its holdings in Tandem Diabetes Care by 36.0% during the fourth quarter. Creative Financial Designs Inc. ADV now owns 3,431 shares of the medical device company's stock worth $75,000 after purchasing an additional 909 shares during the last quarter.

About Tandem Diabetes Care

Tandem Diabetes Care, Inc NASDAQ: TNDM, headquartered in San Diego, California, is a medical device company focused on the design, development and commercialization of innovative insulin delivery systems for people with insulin-dependent diabetes. Founded in 2006, the company introduced its first product, the t:slim® Insulin Pump, in 2011 and has since built a portfolio of next-generation pumps featuring touchscreen interfaces, remote software updates and integrated continuous glucose monitoring (CGM) capabilities.

The company's flagship offering, the t:slim X2® Insulin Pump, is engineered to work with leading CGM sensors and features automated insulin delivery algorithms that adjust basal insulin rates based on real-time glucose trends.

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