Tandem Diabetes Care (NASDAQ:TNDM) Shares Gap Down on Disappointing Earnings

Key Points

• Tandem Diabetes Care shares dropped significantly after reporting earnings of ($0.48) per share, missing analysts' expectations by ($0.08), causing the stock to open at $10.50 from a previous close of $14.39.
• Despite the earnings miss, Tandem Diabetes Care reported an 8.5% increase in revenue year-over-year, with $240.68 million for the quarter compared to analysts' estimates of $238.39 million.
• Brokerages have revised their ratings on Tandem Diabetes Care, with Canaccord Genuity setting a target price of $24.00, while others downgraded their ratings, highlighting a mixed outlook from various financial institutions.

Tandem Diabetes Care, Inc. (NASDAQ:TNDM - Get Free Report)'s stock price gapped down before the market opened on Thursday following a dissappointing earnings announcement. The stock had previously closed at $14.39, but opened at $10.50. Tandem Diabetes Care shares last traded at $10.74, with a volume of 2,164,031 shares.

The medical device company reported ($0.48) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.40) by ($0.08). Tandem Diabetes Care had a negative net margin of 18.71% and a negative return on equity of 57.33%. The business had revenue of $240.68 million during the quarter, compared to the consensus estimate of $238.39 million. During the same period in the previous year, the firm posted ($0.47) EPS. The company's revenue was up 8.5% compared to the same quarter last year.

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on TNDM. Canaccord Genuity Group set a $24.00 target price on shares of Tandem Diabetes Care in a report on Thursday. Wall Street Zen lowered Tandem Diabetes Care from a "hold" rating to a "sell" rating in a report on Saturday, June 21st. Royal Bank Of Canada dropped their price target on Tandem Diabetes Care from $45.00 to $25.00 and set an "outperform" rating for the company in a research note on Thursday. Piper Sandler downgraded shares of 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. Finally, Truist Financial assumed coverage on Tandem Diabetes Care in a report on Monday, June 16th. They set a "hold" rating and a $24.00 price target for the company. Two equities research analysts have rated the stock with a sell rating, eight have given a hold rating and five have issued a buy rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $26.43.

Institutional Trading of Tandem Diabetes Care

Several institutional investors have recently added to or reduced their stakes in TNDM. Cerity Partners LLC lifted its position in shares of Tandem Diabetes Care by 32.2% in the 1st quarter. Cerity Partners LLC now owns 76,005 shares of the medical device company's stock worth $1,456,000 after purchasing an additional 18,529 shares during the period. Envestnet Asset Management Inc. raised its stake in Tandem Diabetes Care by 25.4% during the first quarter. Envestnet Asset Management Inc. now owns 318,530 shares of the medical device company's stock worth $6,103,000 after buying an additional 64,467 shares during the last quarter. Oppenheimer Asset Management Inc. lifted its holdings in Tandem Diabetes Care by 17.9% in the first quarter. Oppenheimer Asset Management Inc. now owns 72,752 shares of the medical device company's stock valued at $1,394,000 after buying an additional 11,048 shares during the period. Janney Montgomery Scott LLC boosted its position in Tandem Diabetes Care by 27.1% during the first quarter. Janney Montgomery Scott LLC now owns 38,450 shares of the medical device company's stock valued at $737,000 after acquiring an additional 8,210 shares during the last quarter. Finally, GAMMA Investing LLC boosted its position in Tandem Diabetes Care by 763.3% during the first quarter. GAMMA Investing LLC now owns 42,190 shares of the medical device company's stock valued at $808,000 after acquiring an additional 37,303 shares during the last quarter.

Tandem Diabetes Care Stock Performance

The stock has a fifty day simple moving average of $17.93 and a two-hundred day simple moving average of $21.88. The company has a debt-to-equity ratio of 1.99, a quick ratio of 1.81 and a current ratio of 2.30. The stock has a market capitalization of $763.35 million, a price-to-earnings ratio of -4.12 and a beta of 1.46.

Tandem Diabetes Care Company Profile

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.

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