Tandem Diabetes Care Target of Unusually High Options Trading (NASDAQ:TNDM)

Key Points

• Options activity surged: Investors purchased 6,164 call options in Tandem Diabetes Care, roughly 840% above its average daily call volume of 656.
• Shares rose 3.8% to $20.25 during Monday trading. The company’s latest quarterly results beat expectations, with revenue of $247.22 million and an adjusted loss of $0.30 per share versus estimates of $240.41 million and a $0.46 loss.
• Analyst sentiment remains mixed: Tandem has an average “Hold” rating and a consensus price target of $28.73, while several institutional investors—including Vanguard and Jennison Associates—recently increased their positions.

Tandem Diabetes Care, Inc. (NASDAQ:TNDM - Get Free Report) saw unusually large options trading on Monday. Investors bought 6,164 call options on the company. This is an increase of approximately 840% compared to the average daily volume of 656 call options.

Tandem Diabetes Care Stock Up 3.8%

Shares of NASDAQ TNDM traded up $0.75 during mid-day trading on Monday, hitting $20.25. 1,273,405 shares of the stock traded hands, compared to its average volume of 2,107,881. The company has a market cap of $1.39 billion, a price-to-earnings ratio of -14.44 and a beta of 1.53. The stock has a fifty day moving average price of $16.52 and a 200-day moving average price of $18.89. Tandem Diabetes Care has a 52 week low of $9.98 and a 52 week high of $29.65. The company has a debt-to-equity ratio of 4.54, a quick ratio of 3.07 and a current ratio of 3.58.

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) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.46) by $0.16. Tandem Diabetes Care had a negative return on equity of 53.88% and a negative net margin of 9.20%.The business had revenue of $247.22 million during the quarter, compared to the consensus estimate of $240.41 million. During the same quarter in the prior year, the company earned ($0.66) earnings per share. The firm's quarterly revenue was up 5.5% compared to the same quarter last year. Research analysts anticipate that Tandem Diabetes Care will post -0.72 EPS for the current year.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of TNDM. Vanguard Group Inc. increased 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 lifted its holdings in shares of Tandem Diabetes Care by 42.3% during 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 purchasing an additional 601,260 shares during the last quarter. WINTON GROUP Ltd bought a new stake in shares of Tandem Diabetes Care in the 4th quarter worth approximately $972,000. First Light Asset Management LLC boosted its position in shares of Tandem Diabetes Care by 20.7% in the 1st quarter. First Light Asset Management LLC now owns 1,314,715 shares of the medical device company's stock worth $25,203,000 after purchasing an additional 225,222 shares in the last quarter. Finally, Royce & Associates LP grew its stake in shares of Tandem Diabetes Care by 27.5% in the 4th quarter. Royce & Associates LP now owns 650,250 shares of the medical device company's stock worth $14,292,000 after buying an additional 140,250 shares during the last quarter.

Wall Street Analysts Forecast Growth

TNDM has been the topic of a number of research analyst reports. TD Cowen reissued a "buy" rating and set a $28.00 price objective (up from $25.00) on shares of Tandem Diabetes Care in a research report on Monday, April 20th. Bank of America dropped their target price on shares of Tandem Diabetes Care from $35.00 to $25.00 and set a "neutral" rating for the company in a research report on Monday, May 18th. UBS Group started coverage on shares of Tandem Diabetes Care in a research report on Tuesday, July 28th. They issued a "neutral" rating and a $18.00 target price for the company. Wells Fargo & Company raised shares of Tandem Diabetes Care from a "buy" rating to an "overweight" rating and lifted their target price for the company from $21.00 to $27.00 in a research note on Monday, June 1st. Finally, Rothschild & Co Redburn set a $45.00 price target on shares of Tandem Diabetes Care in a research report on Friday, April 24th. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $28.73.

Tandem Diabetes Care Company Profile

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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