Tandem Diabetes Care (NASDAQ:TNDM) Shares Gap Down – Here’s What Happened

Shares of Tandem Diabetes Care, Inc. (NASDAQ:TNDM) gapped down prior to trading on Tuesday . The stock had previously closed at $28.26, but opened at $25.71. Tandem Diabetes Care shares last traded at $28.5950, with a volume of 1,141,849 shares trading hands.

Key Headlines Impacting Tandem Diabetes Care

Here are the key news stories impacting Tandem Diabetes Care this week:

• Positive Sentiment: Analyst upgrade — Lake Street upgraded TNDM, which supports upside sentiment from the sell-side and may help buying interest. Lake Street upgrades Tandem Diabetes Care (TNDM)
• Positive Sentiment: Strong quarter / execution — coverage (Seeking Alpha) highlights TNDM’s better-than-expected Q4 revenue and EPS execution and ongoing revenue growth, reinforcing the company’s operational momentum amid its transition to a pay‑as‑you‑go model. This supports the thesis that fundamentals are improving. Tandem Diabetes Care: Strong Q4 Execution Amid A PayGo Transition
• Neutral Sentiment: Earnings-call strategic shift — The company signaled a strategic shift (pay‑as‑you‑go transition) on the earnings call; this could drive longer-term recurring revenue but may compress near-term margins or alter growth cadence. Investors should watch guidance and the cadence of any ARR metrics. Tandem Diabetes Care Earnings Call Signals Strategic Shift
• Negative Sentiment: Convertible-note offering ($200M) — TNDM announced a proposed $200M private placement of convertible senior notes due 2032; the announcement sparked intra-day selling because of dilution and leverage concerns. This is the primary near-term negative catalyst. Tandem Diabetes Care Announces Proposed Private Placement of Convertible Notes
• Negative Sentiment: Market reaction & reporting — Multiple outlets reported the offering and share selling pressure; markets reacted negatively to the debt/dilution risk. Monitor final terms (conversion price, yield) for the dilution magnitude. Tandem Diabetes stock falls on $200M convertible debt offering
• Negative Sentiment: Large shareholder selling — Brown Capital’s fund sold its TNDM position, a signal some investors view as a negative vote of confidence and a potential contributor to near‑term supply pressure. Here’s Why The Brown Capital Management Small Company Fund Sold Tandem Diabetes Care (TNDM)
• Negative Sentiment: Lower price targets from some outlets — Recent analyst/target notes include mixed moves; one published target cut to $22 and Truist’s $27 target (reaffirmed hold) sits below current levels, which may cap upside in the near term. Tandem Diabetes Care (NASDAQ:TNDM) Price Target Raised to $22.00

Analyst Ratings Changes

Several equities research analysts recently commented on TNDM shares. Royal Bank Of Canada reaffirmed an “outperform” rating and issued a $30.00 price target on shares of Tandem Diabetes Care in a report on Wednesday, December 17th. Bank of America upgraded Tandem Diabetes Care from an “underperform” rating to a “neutral” rating and upped their target price for the company from $15.00 to $30.00 in a report on Friday. Canaccord Genuity Group set a $35.00 price target on Tandem Diabetes Care and gave the stock a “buy” rating in a report on Wednesday, December 17th. Piper Sandler reissued a “neutral” rating and set a $21.00 price target (up previously from $14.00) on shares of Tandem Diabetes Care in a research report on Friday. Finally, Sanford C. Bernstein restated a “market perform” rating and set a $25.00 price objective (up from $18.00) on shares of Tandem Diabetes Care in a research report on Friday, January 9th. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Tandem Diabetes Care currently has a consensus rating of “Hold” and a consensus price target of $28.00.

Tandem Diabetes Care Trading Up 1.5%

The firm has a market cap of $1.96 billion, a price-to-earnings ratio of -9.39 and a beta of 1.68. The company has a debt-to-equity ratio of 2.00, a quick ratio of 2.02 and a current ratio of 2.55. The company has a 50 day moving average price of $21.04 and a 200 day moving average price of $17.16.

Tandem Diabetes Care (NASDAQ:TNDM) last posted its earnings results on Thursday, February 19th. The medical device company reported ($0.01) earnings per share for the quarter, beating the consensus estimate of ($0.05) by $0.04. The firm had revenue of $290.38 million during the quarter, compared to the consensus estimate of $277.14 million. Tandem Diabetes Care had a negative net margin of 20.17% and a negative return on equity of 68.23%. The firm’s revenue for the quarter was up 15.1% on a year-over-year basis. During the same quarter last year, the firm earned $0.01 EPS. On average, research analysts expect that Tandem Diabetes Care, Inc. will post -1.68 earnings per share for the current year.

Hedge Funds Weigh In On Tandem Diabetes Care

Hedge funds and other institutional investors have recently bought and sold shares of the company. Vanguard Group Inc. grew its position in Tandem Diabetes Care by 3.9% in the 4th quarter. Vanguard Group Inc. now owns 7,341,356 shares of the medical device company’s stock valued at $161,363,000 after acquiring an additional 278,042 shares in the last quarter. ArrowMark Colorado Holdings LLC boosted its stake in shares of Tandem Diabetes Care by 36.7% in the third quarter. ArrowMark Colorado Holdings LLC now owns 3,691,198 shares of the medical device company’s stock valued at $44,811,000 after purchasing an additional 991,649 shares during the period. Hood River Capital Management LLC boosted its stake in shares of Tandem Diabetes Care by 10.9% in the second quarter. Hood River Capital Management LLC now owns 2,564,978 shares of the medical device company’s stock valued at $47,811,000 after purchasing an additional 252,934 shares during the period. Paradice Investment Management LLC grew its holdings in shares of Tandem Diabetes Care by 24.3% in the third quarter. Paradice Investment Management LLC now owns 2,196,468 shares of the medical device company’s stock valued at $26,665,000 after purchasing an additional 429,289 shares in the last quarter. Finally, Jennison Associates LLC increased its stake in Tandem Diabetes Care by 42.3% during the 4th quarter. Jennison Associates LLC now owns 2,021,376 shares of the medical device company’s stock worth $44,430,000 after buying an additional 601,260 shares during the period.

About Tandem Diabetes Care

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.