What Happened?
Shares of diabetes technology company Tandem Diabetes Care (NASDAQ: TNDM) fell 3.5% in the morning session after a Citi analyst downgraded the stock. Citi analyst Joanna Wuensch downgraded Tandem Diabetes Care from a "Neutral" to a "Sell" rating and significantly cut the price target on the shares to $24 from $35. This move signals rising concerns about the company's future performance and competitive position in the diabetes technology market.
An analyst downgrade can often pressure a stock as it may lead institutional investors to reconsider their positions. The downgrade adds to a challenging period for the medical device maker, which has seen its stock on a continuous losing streak.
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, it’s free.
What Is The Market Telling Us
Tandem Diabetes’s shares are extremely volatile and have had 33 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.
Tandem Diabetes is down 55.3% since the beginning of the year, and at $16.01 per share, it is trading 66.2% below its 52-week high of $47.30 from July 2024. Investors who bought $1,000 worth of Tandem Diabetes’s shares 5 years ago would now be looking at an investment worth $153.78.
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