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Why TNDM’s Stock Price Rose 7.4% on September 25

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Stock performance

On September 25, Tandem Diabetes Care’s (TNDM) stock price closed at $47.84, which represents ~7.43% growth from the close of $44.53 on September 24. On September 20, Tandem Diabetes Care’s stock price grew 8.09% to 43.18 from the close of $39.95 on September 19.

On September 25, Tandem Diabetes Care’s stock price has grown ~1,936% YTD (year-to-date) to $47.84 from its stock price of $2.35 on January 2.

Tandem Diabetes Care hit its 52-week high of $52.55 on September 13, while the company hit its 52-week low of $2.14 on February 9.

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Reason for the higher stock price

On September 25, Tandem Diabetes Care raised its fiscal 2018 sales guidance and declared an estimate for the third-quarter revenues. Tandem Diabetes Care raised its revenue guidance for fiscal 2018 from $140 million–$148 million to $150 million–$158 million. The strong sales growth in the third quarter in the domestic market and launch of the t:slim X2 Insulin Pump made the company increase its revenue guidance. The updated revenue guidance reflects revenue growth of ~47% in 2018—compared to ~39% in the previous revenue guidance.

Tandem Diabetes Care expects the revenues in the third quarter to be $42.0 million–$44.0 million. In the third quarter of 2017, Tandem Diabetes Care reported revenues of $27.0 million. The updated revenue guidance for the third quarter represents revenue growth of ~56% to ~63% compared to the previous year.

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Analysts’ recommendations

Of the ten analysts tracking Tandem Diabetes Care in September, two recommend a “strong buy,” five recommend a “buy,” and three recommend a “hold.”

On September 25, Tandem Diabetes Care had a consensus 12-month target price of $49.3, which represents an ~3.05% return on investment over the next 12 months.

Peers’ ratings

In September, of the five analysts tracking TransEnterix (TRXC), ~40% of them recommended a “buy.” Among the 17 analysts tracking Insulet (PODD), ~71% recommended a “buy.”

On September 25, TransEnterix and Insulet had consensus 12-month target prices of $6.17 and $105.47, respectively, which represents an ~3.74% decline and ~0.12% growth over the next 12 months.

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