Tandem Diabetes Care, Inc. (TNDM) Insider Trading Is Uncovering Many Things

If you can handle volatility, Tandem Diabetes Care, Inc. (NASDAQ:TNDM) is the stock to watch now. The stock closed higher on 14 March. The shares accumulated 0.55 points or 0.77 percent at $71.97 with a light trade volume of 1.939 million shares. After opening the session at $71.56, the shares went as high as $72.8 and as low as $70.39, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $3.98 billion and now has 55.27 million shares outstanding. Tandem Diabetes Care, Inc. (TNDM) stock has gained 54.94 percent of market value in 21 trading days.

TNDM stock has a trailing 3-year beta of 0.7, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$10.37 a share in the trailing twelve months. The stock’s value has surged 89.54 percent year to date (YTD) against a rise of 1834.68 percent in 12 month’s time. The company’s shares still trade -3.23 percent away from its 1-year high of $74.37 and 2206.73 percent up from 52-week low of $3.12. The average consensus rating on the company is 2, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Tandem Diabetes Care, Inc. (TNDM) will probably climb -6.53 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $100-month high price target. This represents a whopping 38.95 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $66, which represents a return potential of -8.3 percent when compared to the closing price of the stock of $71.97 on Thursday, March 14. The lowest price target for the stock is $53 — slightly more than -26.36 percent from TNDM’s current share price.

History has shown that shares in Tandem Diabetes Care, Inc. have gone down on 11 different earnings reaction days and are predicted to add 0.11 percent when the company reports upcoming earnings. Investors will get their next glimpse of TNDM’s Q1 earnings on April 25. Analysts are forecasting revenue to climb 74.2 percent to $47.51M in the fiscal first quarter, while earnings are seen soaring by nearly -83.52 percent to -$0.3 per share. It earned $0.02 per share, better than the -$0.2, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $76.2M, better than the $56.34M analysts expected. Earnings are estimated to increase by 72.9 percent this year, 43.5 percent next year and continue to increase by 0 percent annually for the next 5 years.

The stock is currently hovering around the first support level of $70.64. Below this, the next support is placed in the zone of $69.31. Till the time, the TNDM stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 73.76 on daily chart, which may remain a cause for concern. If the price breaks below $69.31 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $73.05 mark may result into a pull-back move towards $74.13 level.

Further, it is sporting a 26.88 on the Price-to-Sales ratio. Compare this with the industry average P/S of 6.37. 44.4 percent is the gross profit margin for Tandem Diabetes Care, Inc. and operating margin sits at -35.3 percent. Along with this, the net profit margin is -80.8 percent.