Tandem stock rose 21% last week
Tandem Diabetes Care (TNDM) stock rose 21% in the week ended March 29, 2018, to close at $4.96. On March 29, 2018, it was trading 129% above its 52-week low of $2.14 and 62.3% below its 52-week high of $13. However, TNDM stock has been falling significantly over the last year over concerns about the company’s survival due to severe financial constraints and capital requirements. TNDM stock has fallen ~60% over the past 12 months. Peer companies Dexcom (DXCM), Abbott Laboratories (ABT), and Medtronic (MDT) have generated returns of -9%, 31.8%, and 3.9%, respectively, in the last year.
On March 28, 2018, TNDM stock rose 5.5%. Over the last month, it has risen 26% on the back of impressive 4Q17 earnings results and constructive 2018 guidance announced by the company on March 1, 2018. That boosted its strong turnaround prospects amid a weak financial position.
Revenue rose 58.5% YoY in 4Q17
Tandem Diabetes Care’s GAAP (generally accepted accounting principles) sales rose ~39% YoY (year-over-year), driven mainly by a ~58.5% YoY growth in insulin pump shipments. Those shipments had declined sharply in 2017, eventually registering a YoY growth of 1% for 2017. On March 23, 2018, Baird upgraded TNDM stock from “neutral” to “outperform” and increased its 12-month target price from $3 to $7. The analyst covering TNDM stock believes the odds for Tandem Diabetes Care are improving and that the company may ride high on its HCL (Hybrid Closed Loop) system that could enter the market by next year.
Of the seven analysts covering Tandem Diabetes Care, three have given it a “buy” rating, three have recommended a “hold,” and one has recommended a “sell.” Wall Street analysts have an average 12-month price target of $4.86, which implies a return potential of -0.82% over the next 12 months.