Tandem Diabetes Care Stock Has Skyrocketed in 2018

Stock performance

On November 21, Tandem Diabetes Care (TNDM) stock closed at $32.63, a ~14.69% rise from its previous day’s close of $28.45.

Tandem Diabetes Care stock closed at $2.36 on December 29, 2017, and reached $32.63 on November 21, 2018, which represents a rise of ~1,283% year-to-date. On November 21, Tandem Diabetes Care stock closed at $32.63, ~38% below its 52-week high of $52.55 on September 13.

Tandem Diabetes Care Stock Has Skyrocketed in 2018

Tandem Diabetes Care hit its 52-week low of $2.14 on February 9.

Financials in a nutshell

Tandem Diabetes Care’s net revenue in the first nine months of 2018 amounted to $107.7 million compared to $67.3 million in the same period last year, reflecting a ~60% YoY (year-over-year) rise. Tandem Diabetes Care’s gross profit in the first nine months of 2018 amounted to $48.3 million compared to $26.6 million in the same period last year.

Tandem Diabetes Care’s medical device peers Insulet (PODD) and Dexcom (DXCM) reported YoY revenues of $151.08 million and $266.70 million, respectively, in the third quarter, reflecting returns on investment of ~24.05% and ~44.47%, respectively, in the last 12 months.

The revenue growth of Tandem Diabetes Care could boost the price of the SPDR S&P Health Care Equipment ETF (XHE). Tandem Diabetes Care makes up ~1.26% of XHE’s holdings.

The company’s net income and diluted EPS over the first nine months of 2018 amounted to -$126.3 million and -$2.81, respectively, compared to its net income and diluted EPS of -$61.6 million and -$13.79, respectively, in the same period of the previous year.

Tandem Diabetes Care’s pump shipments witnessed ~118% growth in the third quarter compared to the third quarter of 2017. Tandem Diabetes Care shipped 3,868 pumps in the quarter. The company had reported net cash, cash equivalents, and short-term investments of $113.6 million as of September 30.

Tandem Diabetes Care expects net revenue in the range of $160.0 million–$165.0 million in 2018.

Analysts’ recommendations

Of the ten analysts tracking Tandem Diabetes Care in November, three have recommended “strong buys,” while five have recommended “buys” on the stock. Two analysts have recommended “holds” on Tandem Diabetes Care in November.

On November 22, Tandem Diabetes Care had a consensus 12-month target price of $52.5, which represents a potential return of ~60.89% over the next 12 months.