Tandem Diabetes Care (NASDAQ:TNDM) Stock Price Down 5.5% - Should You Sell?

Key Points

• Tandem Diabetes Care shares fell 5.5% on Tuesday, trading as low as $14.58 before closing at $15.36 on lighter-than-usual volume.
• Analyst sentiment remains mixed: the stock has a consensus Hold rating with a $29.12 average target price, though individual targets range from $15.50 to $55.00.
• The company recently beat quarterly expectations with EPS of -$0.30 and revenue of $247.22 million, but it still posted negative margins and analysts expect a loss of $0.72 per share for the full year.

Tandem Diabetes Care, Inc. (NASDAQ:TNDM - Get Free Report)'s share price was down 5.5% during trading on Tuesday . The company traded as low as $14.58 and last traded at $15.3550. 322,057 shares were traded during trading, a decline of 85% from the average daily volume of 2,141,933 shares. The stock had previously closed at $16.25.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on the company. The Goldman Sachs Group set a $21.00 target price on Tandem Diabetes Care in a report on Wednesday, May 27th. Citigroup reissued a "neutral" rating and issued a $17.00 target price (down from $22.00) on shares of Tandem Diabetes Care in a research note on Thursday, May 28th. Deutsche Bank Aktiengesellschaft began coverage on shares of Tandem Diabetes Care in a research note on Tuesday, June 23rd. They issued a "hold" rating and a $15.50 price target for the company. Barclays set a $55.00 price objective on shares of Tandem Diabetes Care and gave the stock an "overweight" rating in a research note on Monday, May 11th. Finally, Wells Fargo & Company raised Tandem Diabetes Care from a "buy" rating to an "overweight" rating and boosted their price target for the stock from $21.00 to $27.00 in a research report on Monday, June 1st. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, eleven have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $29.12.

Tandem Diabetes Care Stock Performance

The company has a current ratio of 3.58, a quick ratio of 3.07 and a debt-to-equity ratio of 4.54. The stock's 50-day simple moving average is $15.96 and its 200-day simple moving average is $19.38. The stock has a market cap of $1.07 billion, a price-to-earnings ratio of -11.15 and a beta of 1.58.

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

Institutional Investors Weigh In On Tandem Diabetes Care

A number of hedge funds have recently made changes to their positions in TNDM. Vanguard Group Inc. boosted 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 valued at $161,363,000 after purchasing an additional 278,042 shares in the last quarter. Jennison Associates LLC boosted its holdings in 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 valued at $44,430,000 after acquiring an additional 601,260 shares during the last quarter. Assenagon Asset Management S.A. bought a new position in Tandem Diabetes Care during the 4th quarter worth approximately $26,988,000. WINTON GROUP Ltd acquired a new position in shares of Tandem Diabetes Care in the 4th quarter worth approximately $972,000. Finally, Baillie Gifford & Co. boosted its stake in shares of Tandem Diabetes Care by 2.2% in the 4th quarter. Baillie Gifford & Co. now owns 1,145,516 shares of the medical device company's stock valued at $25,178,000 after purchasing an additional 24,921 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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