Tandem Diabetes Care (NASDAQ:TNDM) Trading Down 6.5% Following Analyst Downgrade

Shares of Tandem Diabetes Care, Inc. (NASDAQ:TNDM) dropped 6.5% during trading on Wednesday after Zacks Research downgraded the stock from a strong-buy rating to a hold rating. The company traded as low as $16.62 and last traded at $16.4620. Approximately 525,705 shares traded hands during trading, a decline of 76% from the average daily volume of 2,162,363 shares. The stock had previously closed at $17.61.

Other equities analysts have also recently issued research reports about the stock. Benchmark initiated coverage on shares of Tandem Diabetes Care in a research report on Monday, May 11th. They set a “hold” rating for the company. Lake Street Capital upgraded shares of Tandem Diabetes Care from a “hold” rating to a “buy” rating and set a $50.00 target price for the company in a research report on Monday, February 23rd. UBS Group restated a “neutral” rating and set a $22.00 target price (up from $17.00) on shares of Tandem Diabetes Care in a research report on Friday, February 20th. Rothschild & Co Redburn set a $45.00 price objective on shares of Tandem Diabetes Care in a research report on Friday, April 24th. Finally, Wells Fargo & Company raised shares of Tandem Diabetes Care from a “buy” rating to an “overweight” rating and boosted their price objective for the company from $21.00 to $27.00 in a research report on Monday, June 1st. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $29.84.

Hedge Funds Weigh In On Tandem Diabetes Care

Institutional investors and hedge funds have recently bought and sold shares of the stock. Smartleaf Asset Management LLC increased its position in Tandem Diabetes Care by 80.5% during the fourth quarter. Smartleaf Asset Management LLC now owns 1,330 shares of the medical device company’s stock worth $30,000 after purchasing an additional 593 shares during the last quarter. OP Asset Management Ltd acquired a new position in Tandem Diabetes Care during the first quarter worth approximately $35,000. Caitong International Asset Management Co. Ltd increased its position in Tandem Diabetes Care by 200.0% during the third quarter. Caitong International Asset Management Co. Ltd now owns 2,205 shares of the medical device company’s stock worth $27,000 after purchasing an additional 1,470 shares during the last quarter. Van ECK Associates Corp increased its position in Tandem Diabetes Care by 67.4% during the fourth quarter. Van ECK Associates Corp now owns 3,430 shares of the medical device company’s stock worth $75,000 after purchasing an additional 1,381 shares during the last quarter. Finally, Creative Financial Designs Inc. ADV increased its position in Tandem Diabetes Care by 36.0% during the fourth quarter. Creative Financial Designs Inc. ADV now owns 3,431 shares of the medical device company’s stock worth $75,000 after purchasing an additional 909 shares during the last quarter.

Tandem Diabetes Care Stock Down 2.6%

The company has a debt-to-equity ratio of 4.54, a current ratio of 3.58 and a quick ratio of 3.07. The firm’s 50-day moving average is $17.79 and its 200 day moving average is $20.28. The stock has a market cap of $1.08 billion, a price-to-earnings ratio of -11.29 and a beta of 1.58.

Tandem Diabetes Care (NASDAQ:TNDM) last issued its quarterly earnings results on Thursday, May 7th. The medical device company reported ($0.30) EPS for the quarter, topping the consensus estimate of ($0.46) by $0.16. Tandem Diabetes Care had a negative net margin of 9.20% and a negative return on equity of 53.88%. The firm had revenue of $247.22 million during the quarter, compared to analyst estimates of $240.41 million. During the same quarter in the prior year, the business posted ($0.66) earnings per share. Tandem Diabetes Care’s revenue for the quarter was up 5.5% compared to the same quarter last year. Sell-side analysts anticipate that Tandem Diabetes Care, Inc. will post -0.74 earnings per share for the current fiscal year.

Tandem Diabetes Care Company Profile

Tandem Diabetes Care, Inc (NASDAQ: TNDM), headquartered in San Diego, California, is a medical device company focused on the design, development and commercialization of innovative insulin delivery systems for people with insulin-dependent diabetes. Founded in 2006, the company introduced its first product, the t:slim® Insulin Pump, in 2011 and has since built a portfolio of next-generation pumps featuring touchscreen interfaces, remote software updates and integrated continuous glucose monitoring (CGM) capabilities.

The company’s flagship offering, the t:slim X2® Insulin Pump, is engineered to work with leading CGM sensors and features automated insulin delivery algorithms that adjust basal insulin rates based on real-time glucose trends.