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Acton, Massachusetts-based Insulet Corporation (PODD) develops, manufactures, and sells insulin delivery systems for people with insulin-dependent diabetes. With a market cap of $16.6 billion, Insulet’s operations span the United States, Canada, Europe, the Middle East, Australia, and internationally.
Companies worth $10 billion or more are generally described as "large-cap stocks," Insulet fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the medical devices industry. It was the first medical device manufacturer to develop a tubeless insulin delivery system and a mobile app that helps people manage their diabetes remotely.
Insulet’s stock touched its 52-week high of $243.98 on Sep. 17 and is now trading 2.1% below that peak. PODD has gained 17.1% over the past three months, outpacing the Nasdaq Composite’s ($NASX) 1.6% gains during the same time frame.
Over the longer term, PODD stock looks even more attractive. Although PODD gained 10.1% in 2024, lagging behind NASX’s 19.7% gains on a YTD basis, it is up 53.5% over the past year, outperforming NASX’s 36.1% returns during the same time frame.
To confirm the bullish trend, PODD has been trading above its 50-day moving average since early May and above its 200-day moving average since early June with slight fluctuations.
Despite reporting robust growth in revenues and profits, shares of Insulet plunged 8.8% in the trading session after the release of its Q2 earnings on Aug. 8. The company showcased an impressive 23.2% year-over-year growth in total revenues, reaching $499.5 million. It also reported a 3.3% operating margin expansion to 11.2%, leading to a substantial 75.6% growth in operating income, totaling $54.6 million. While its net income grew by a massive 590.8% to $188.6 million, primarily driven by an income tax benefit of $137.5 million.
However, despite these strong financial results, Insulet’s adjusted EPS of $0.55 fell short of consensus estimates by 3.5%. This miss was particularly notable given the company had an average positive earnings surprise of 91.2% over the preceding three quarters.
Insulet’s competitor, Tandem Diabetes Care, Inc. (TNDM), has gained 120.6% over the past year and 53.6% on a YTD basis, outperforming PODD.
Among the 20 analysts covering the PODD stock, the consensus rating is a “Strong Buy.” Although Insulet is trading above its mean price target of $238.74, the Street-high target of $285 represents a potential upside of 19.3% from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
