Tandem Diabetes Care (NASDAQ:TNDM) Trading Down 6.6% Following Analyst Downgrade

Key Points

• Tandem Diabetes Care stock dropped 6.6% after Barclays reduced its price target from $53.00 to $51.00, despite maintaining an "overweight" rating on the stock.
• Multiple analysts have adjusted their price targets recently, resulting in a consensus rating of "Hold" and an average price target of approximately $23.43.
• The company's latest earnings report showed a loss of ($0.48) EPS, missing expectations, but revenue increased by 8.5% year-over-year to $240.68 million.

Tandem Diabetes Care, Inc. (NASDAQ:TNDM - Get Free Report)'s share price fell 6.6% during trading on Monday after Lake Street Capital downgraded the stock from a buy rating to a hold rating. Lake Street Capital now has a $12.00 price target on the stock, down from their previous price target of $75.00. Tandem Diabetes Care traded as low as $10.60 and last traded at $10.49. 228,062 shares were traded during trading, a decline of 86% from the average session volume of 1,671,161 shares. The stock had previously closed at $11.23.

Other equities research analysts have also issued research reports about the company. Wall Street Zen lowered Tandem Diabetes Care from a "hold" rating to a "sell" rating in a research report on Saturday, June 21st. Piper Sandler downgraded Tandem Diabetes Care from an "overweight" rating to a "neutral" rating and dropped their price objective for the company from $30.00 to $14.00 in a research note on Thursday, August 7th. Royal Bank Of Canada dropped their price objective on Tandem Diabetes Care from $45.00 to $25.00 and set an "outperform" rating on the stock in a research note on Thursday, August 7th. Wells Fargo & Company dropped their price objective 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. Finally, UBS Group dropped their price objective on Tandem Diabetes Care from $20.00 to $17.00 and set a "neutral" rating on the stock in a research note on Thursday, August 7th. Two equities research analysts have rated the stock with a sell rating, ten have given a hold rating and four have issued a buy rating to the company. According to data from MarketBeat.com, Tandem Diabetes Care presently has an average rating of "Hold" and an average target price of $22.67.

Insider Buying and Selling

In other Tandem Diabetes Care news, CEO John F. Sheridan purchased 10,000 shares of the firm's stock in a transaction that occurred on Monday, August 11th. The stock was bought at an average cost of $10.23 per share, with a total value of $102,300.00. Following the completion of the transaction, the chief executive officer 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 purchase was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Leigh Vosseller purchased 13,720 shares of the firm's stock in a transaction that occurred on Friday, August 8th. The shares were acquired at an average cost of $10.89 per share, with a total value of $149,410.80. Following the completion of the transaction, the chief financial officer directly owned 25,580 shares of the company's stock, valued at $278,566.20. The trade was a 115.68% increase in their position. The disclosure for this purchase can be found here. Company insiders own 1.90% of the company's stock.

Hedge Funds Weigh In On Tandem Diabetes Care

Institutional investors and hedge funds have recently bought and sold shares of the company. Cerity Partners LLC grew its holdings in Tandem Diabetes Care by 32.2% during the first quarter. Cerity Partners LLC now owns 76,005 shares of the medical device company's stock valued at $1,456,000 after purchasing an additional 18,529 shares during the period. Envestnet Asset Management Inc. boosted its holdings in shares of Tandem Diabetes Care by 25.4% in the first quarter. Envestnet Asset Management Inc. now owns 318,530 shares of the medical device company's stock worth $6,103,000 after acquiring an additional 64,467 shares during the period. Oppenheimer Asset Management Inc. boosted its holdings in shares of 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 worth $1,394,000 after acquiring an additional 11,048 shares during the period. Janney Montgomery Scott LLC boosted its holdings in shares of Tandem Diabetes Care by 27.1% in the first quarter. Janney Montgomery Scott LLC now owns 38,450 shares of the medical device company's stock worth $737,000 after acquiring an additional 8,210 shares during the period. Finally, GAMMA Investing LLC boosted its holdings in shares of Tandem Diabetes Care by 763.3% in the first quarter. GAMMA Investing LLC now owns 42,190 shares of the medical device company's stock worth $808,000 after acquiring an additional 37,303 shares during the period.

Tandem Diabetes Care Stock Down 1.8%

The stock has a fifty day moving average price of $16.99 and a 200 day moving average price of $21.04. The company has a debt-to-equity ratio of 2.32, a current ratio of 2.44 and a quick ratio of 1.88. The stock has a market capitalization of $738.27 million, a P/E ratio of -3.57 and a beta of 1.46.

Tandem Diabetes Care (NASDAQ:TNDM - Get Free Report) last posted its quarterly earnings results on Wednesday, August 6th. The medical device company reported ($0.48) EPS for the quarter, missing analysts' consensus estimates 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 during the quarter, compared to the consensus estimate of $238.39 million. During the same period in the previous year, the business earned ($0.47) earnings per share. Tandem Diabetes Care's revenue was up 8.5% on a year-over-year basis. On average, research analysts forecast that Tandem Diabetes Care, Inc. will post -1.68 earnings per share for the current year.

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.