Tandem Diabetes Care (NASDAQ:TNDM) Shares Gap Down After Earnings Miss

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) shares gapped down prior to trading 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 traded.

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 company had revenue of $240.68 million for the quarter, compared to analysts' expectations of $238.39 million. During the same quarter last year, the company earned ($0.47) EPS. Tandem Diabetes Care's revenue for the quarter was up 8.5% compared to the same quarter last year.

Analysts Set New Price Targets

Several research firms have recently commented on TNDM. Truist Financial began coverage on Tandem Diabetes Care in a research note on Monday, June 16th. They set a "hold" rating and a $24.00 price target for the company. Canaccord Genuity Group set a $24.00 price target on Tandem Diabetes Care and gave the stock a "buy" rating in a research note on Thursday. Wall Street Zen cut Tandem Diabetes Care from a "hold" rating to a "sell" rating in a research note on Saturday, June 21st. Royal Bank Of Canada cut 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. Finally, Barclays dropped their price objective on Tandem Diabetes Care from $53.00 to $51.00 and set an "overweight" rating on the stock in a report on Friday. Two equities research analysts have rated the stock with a sell rating, ten have assigned a hold rating and four have given a buy rating to the company. Based on data from MarketBeat, Tandem Diabetes Care currently has a consensus rating of "Hold" and an average price target of $22.67.

Insider Buying and Selling at Tandem Diabetes Care

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

Institutional Trading of Tandem Diabetes Care

Several large investors have recently bought and sold shares of the company. Sessa Capital IM L.P. acquired a new stake in Tandem Diabetes Care in the first quarter valued at $85,574,000. GW&K Investment Management LLC grew its holdings in Tandem Diabetes Care by 34.9% in the first quarter. GW&K Investment Management LLC now owns 2,863,987 shares of the medical device company's stock valued at $54,874,000 after purchasing an additional 740,499 shares during the last quarter. ArrowMark Colorado Holdings LLC grew its holdings in Tandem Diabetes Care by 14.1% in the fourth quarter. ArrowMark Colorado Holdings LLC now owns 2,723,715 shares of the medical device company's stock valued at $98,108,000 after purchasing an additional 337,026 shares during the last quarter. Stephens Investment Management Group LLC boosted its stake in shares of Tandem Diabetes Care by 1.8% during the second quarter. Stephens Investment Management Group LLC now owns 1,737,769 shares of the medical device company's stock valued at $32,392,000 after acquiring an additional 30,854 shares during the last quarter. Finally, Jacobs Levy Equity Management Inc. boosted its stake in shares of Tandem Diabetes Care by 189.0% during the fourth quarter. Jacobs Levy Equity Management Inc. now owns 1,661,013 shares of the medical device company's stock valued at $59,830,000 after acquiring an additional 1,086,337 shares during the last quarter.

Tandem Diabetes Care Trading Down 10.0%

The company has a quick ratio of 1.88, a current ratio of 2.44 and a debt-to-equity ratio of 2.32. The firm has a market cap of $683.13 million, a price-to-earnings ratio of -3.27 and a beta of 1.46. The business has a 50 day moving average of $17.36 and a 200 day moving average of $21.17.

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.