What Happened?
Shares of diabetes technology company Tandem Diabetes Care (NASDAQ: TNDM) fell 6% in the afternoon session after investor concerns were sparked by a disappointing financial outlook from peer DexCom. DexCom, a major company in the glucose monitoring market, reported its third-quarter financial results. Although the company's earnings and revenue surpassed targets, its stock fell sharply by around 11% to 12%. The drop was triggered after company executives provided a growth forecast for 2026 that might not meet Wall Street's expectations and also signaled a lower margin forecast. This negative outlook from a key industry player appeared to create wider concerns, weighing on shares of related companies like Tandem Diabetes.
The shares closed the day at $13.99, down 4.2% from previous close.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Tandem Diabetes? Access our full analysis report here.
What Is The Market Telling Us
Tandem Diabetes’s shares are extremely volatile and have had 40 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock gained 1.6% on the news that the company announced a positive update on a clinical study for its Control-IQ system. The study, conducted in France, aimed to assess the real-world safety, performance, and quality of life benefits for individuals with Type 1 Diabetes using the system. Positive findings from such studies could increase confidence in the product's effectiveness. The move also occurred amid a favorable long-term view of the industry, with a report projecting the U.S. insulin pump market would grow to $2.58 billion by 2033, driven by rising diabetes rates and new technology. This backdrop of potential growth came even as the company faced challenges, having recently reported a revenue increase of 8.5% year-over-year but missing earnings per share estimates.
Tandem Diabetes is down 60.9% since the beginning of the year, and at $14 per share, it is trading 62.7% below its 52-week high of $37.53 from January 2025. Investors who bought $1,000 worth of Tandem Diabetes’s shares 5 years ago would now be looking at an investment worth $129.63.
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