Tandem Diabetes Care (NASDAQ:TNDM) Shares Up 6.5% - Should You Buy?

Key Points

• Tandem Diabetes Care shares rose 6.5% on Monday, trading as high as $16.28 after closing at $15.41, though volume was far below average.
• Analyst sentiment remains mixed: the stock has a consensus rating of Hold and a consensus price target of $29.12, despite several firms maintaining Buy or Overweight ratings.
• The company’s latest earnings beat estimates, with EPS of -$0.30 versus -$0.46 expected and revenue of $247.22 million, up 5.5% year over year.

Tandem Diabetes Care, Inc. (NASDAQ:TNDM - Get Free Report)'s share price shot up 6.5% during trading on Monday . The stock traded as high as $16.28 and last traded at $16.4040. 322,708 shares were traded during trading, a decline of 85% from the average daily volume of 2,145,208 shares. The stock had previously closed at $15.41.

Analysts Set New Price Targets

Several analysts recently weighed in on the company. Truist Financial restated a "buy" rating and issued a $31.00 price objective (down from $35.00) on shares of Tandem Diabetes Care in a report on Monday, May 11th. TD Cowen reiterated a "buy" rating and set a $28.00 target price (up from $25.00) on shares of Tandem Diabetes Care in a report on Monday, April 20th. 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. Benchmark started coverage on shares of Tandem Diabetes Care in a report on Monday, May 11th. They issued a "hold" rating for the company. Finally, Barclays set a $55.00 price objective on shares of Tandem Diabetes Care and gave the company an "overweight" rating in a research note on Monday, May 11th. One equities research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $29.12.

Tandem Diabetes Care Price Performance

The stock's 50-day moving average is $16.03 and its 200 day moving average is $19.43. The company has a debt-to-equity ratio of 4.54, a current ratio of 3.58 and a quick ratio of 3.07. The company has a market cap of $1.11 billion, a PE ratio of -11.52 and a beta of 1.58.

Tandem Diabetes Care (NASDAQ:TNDM - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The medical device company reported ($0.30) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.46) by $0.16. The business had revenue of $247.22 million for the quarter, compared to analyst estimates of $240.41 million. Tandem Diabetes Care had a negative net margin of 9.20% and a negative return on equity of 53.88%. The business's revenue for the quarter was up 5.5% on a year-over-year basis. During the same period in the previous year, the company earned ($0.66) earnings per share. On average, equities analysts anticipate that Tandem Diabetes Care, Inc. will post -0.72 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in TNDM. Vanguard Group Inc. grew its stake in shares of Tandem Diabetes Care by 3.9% during the fourth quarter. Vanguard Group Inc. now owns 7,341,356 shares of the medical device company's stock worth $161,363,000 after acquiring an additional 278,042 shares during the last quarter. ArrowMark Colorado Holdings LLC increased its stake in Tandem Diabetes Care by 36.7% during the 3rd quarter. ArrowMark Colorado Holdings LLC now owns 3,691,198 shares of the medical device company's stock valued at $44,811,000 after purchasing an additional 991,649 shares in the last quarter. Jennison Associates LLC raised its holdings in shares of Tandem Diabetes Care by 42.3% in the fourth quarter. Jennison Associates LLC now owns 2,021,376 shares of the medical device company's stock worth $44,430,000 after buying an additional 601,260 shares during the last quarter. Freestone Grove Partners LP acquired a new stake in shares of Tandem Diabetes Care during the third quarter worth $22,706,000. Finally, Goldman Sachs Group Inc. grew its holdings in shares of Tandem Diabetes Care by 17.6% during the fourth quarter. Goldman Sachs Group Inc. now owns 1,683,400 shares of the medical device company's stock valued at $37,001,000 after buying an additional 252,028 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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