Tandem Diabetes Care (NASDAQ:TNDM) Shares Gap Up Following Insider Buying Activity

Key Points

• Tandem Diabetes Care's stock price increased from $10.11 to $11.07 after insider buying activity, with CFO Leigh Vosseller purchasing 13,720 shares and CEO John F. Sheridan acquiring 10,000 shares.
• Analysts have downgraded the company's stock ratings, with Lake Street Capital lowering its target price from $75.00 to $12.00, indicating a shift in market sentiment.
• The company reported a quarterly earnings miss, with an EPS of ($0.48) against expectations of ($0.40), despite a revenue increase of 8.5% year-over-year.

Tandem Diabetes Care, Inc. (NASDAQ:TNDM - Get Free Report)'s share price gapped up prior to trading on Tuesday following insider buying activity. The stock had previously closed at $10.11, but opened at $11.07. Tandem Diabetes Care shares last traded at $10.91, with a volume of 461,367 shares traded.

Specifically, CFO Leigh Vosseller bought 13,720 shares of the business's stock in a transaction dated Friday, August 8th. The shares were purchased at an average cost of $10.89 per share, with a total value of $149,410.80. Following the completion of the purchase, the chief financial officer owned 25,580 shares in the company, valued at approximately $278,566.20. The trade was a 115.68% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO John F. Sheridan bought 10,000 shares of the business's stock in a transaction dated Monday, August 11th. The stock was bought at an average cost of $10.23 per share, for a total transaction of $102,300.00. Following the completion of the purchase, the chief executive officer owned 106,327 shares of the company's stock, valued at approximately $1,087,725.21. The trade was a 10.38% increase in their position. The disclosure for this purchase can be found here.

Analysts Set New Price Targets

A number of research firms have recently commented on TNDM. Wells Fargo & Company cut their target price on Tandem Diabetes Care from $20.00 to $13.00 and set an "equal weight" rating on the stock in a research note on Thursday, August 7th. Lake Street Capital cut Tandem Diabetes Care from a "buy" rating to a "hold" rating and cut their target price for the stock from $75.00 to $12.00 in a research note on Monday. Citigroup reissued a "sell" rating and issued a $14.00 target price (down from $24.00) on shares of Tandem Diabetes Care in a research note on Wednesday, July 9th. Truist Financial began coverage on Tandem Diabetes Care in a research note on Monday, June 16th. They issued a "hold" rating and a $24.00 target price on the stock. Finally, Barclays cut their target price on Tandem Diabetes Care from $53.00 to $51.00 and set an "overweight" rating on the stock in a research note on Friday, August 8th. 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's stock. Based on data from MarketBeat, Tandem Diabetes Care currently has an average rating of "Hold" and an average target price of $22.67.

Tandem Diabetes Care Stock Performance

The business has a fifty day simple moving average of $16.79 and a two-hundred day simple moving average of $20.86. 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 company has a market cap of $720.30 million, a P/E ratio of -3.45 and a beta of 1.46.

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

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the company. Sessa Capital IM L.P. bought a new position in Tandem Diabetes Care in the first quarter valued at about $85,574,000. GW&K Investment Management LLC lifted 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 acquiring an additional 740,499 shares during the period. ArrowMark Colorado Holdings LLC raised its stake in shares of 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 worth $98,108,000 after buying an additional 337,026 shares during the period. Hood River Capital Management LLC raised its stake in shares of Tandem Diabetes Care by 10.9% in the second quarter. Hood River Capital Management LLC now owns 2,564,978 shares of the medical device company's stock worth $47,811,000 after buying an additional 252,934 shares during the period. Finally, Paradice Investment Management LLC raised its stake in shares of Tandem Diabetes Care by 7.1% in the second quarter. Paradice Investment Management LLC now owns 1,767,179 shares of the medical device company's stock worth $32,940,000 after buying an additional 117,272 shares during the period.

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.