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Tandem Diabetes Care Stock Rose 44% Last Week

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May. 22 2018, Published 7:10 a.m. ET

Stock performance

Tandem Diabetes Care (TNDM) witnessed a 44% rise between May 11 and May 18. On May 18, Tandem Diabetes Care stock closed at $12.83, a 500% increase from its 52-week low of $2.14 on February 9 and a 9.8% hike from the previous day’s close of $0.62.

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Reasons for the stock price hike

Tandem Diabetes Care, a medical device company focused on the development of insulin pumps, generated revenues of $27.3 million in Q1 2018 compared to $19.0 million in Q1 2017. In the first quarter, Tandem Diabetes Care’s pump shipment rose 58% to 4,444 pumps from 2,816 pumps in the first quarter. Tandem Diabetes care reported a net loss of $32.7 million in Q1 2018 compared to $23.8 million in Q1 2017.

Tandem Diabetes Care anticipates net revenues for fiscal 2018 to be in the range of $132 million to $140 million. At the end of April, Tandem Diabetes Care received CE mark approval for its t:slim X2 insulin pump with integrated Dexcom G5 mobile continuous glucose monitoring. Tandem Diabetes Care plans to commercialize the device in the international market at the beginning of the second half of 2018.

In April 2018, Tandem Diabetes Care entered an agreement with Movi SpA for the commercialization of the t:slim insulin pump in the Italy market. The global launch of the insulin pump will likely significantly boost the revenue growth of Tandem Diabetes Care in 2018 and beyond.

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Analysts’ recommendations

Of the seven analysts tracking Tandem Diabetes Care in May 2018, 57% of the analysts recommended some form of a “buy” rating. Two analysts recommended a “hold,” while one analyst recommended a “sell.” On May 20, Tandem Diabetes Care had a consensus 12-month target price of $8.36, which represents a ~34.8% decline over the next 12 months.

Peer ratings

Of the 17 analysts tracking Baxter International (BAX) in May 2018, ~59% of them recommended a “buy.” Among the 15 analysts tracking Align Technology (ALGN) in May 2018, ~80% of them recommended a “buy.” Of the 27 analysts tracking Zimmer Biomet Holding (ZBH) in May 2018, ~67% of them recommended some form of a “buy” rating.

On May 20, Baxter International, Align Technology, and Zimmer Biomet Holding had consensus 12-month target prices of $77.2, $302.93, and $132.65, respectively, which represents ~9.4%, ~1.7% and ~15.9% upside over the next 12 months.

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