Insulet Corporation: Market Performance and Future Projections
With a market capitalization of $18.4 billion, Insulet Corporation (PODD) stands out as a top developer of innovative insulin delivery systems geared towards individuals with insulin-dependent diabetes. The company’s flagship product, the Omnipod System, is a tubeless, wearable insulin pump equipped with wireless capabilities that offers a discreet and user-friendly solution for continuous insulin delivery.
Classified as a “large-cap” stock, Insulet fits the bill for companies valued at over $10 billion. Based in Acton, Massachusetts, Insulet also collaborates with pharmaceutical and biotechnology firms to broaden the applications of its technology for delivering various subcutaneous drugs.
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The manufacturer of insulin infusion systems has seen its stock decrease by 10.7% from its 52-week peak of $289.46. Over the past three months, shares of PODD have seen a slight decline, underperforming the 4.7% increase of the Health Care Select Sector SPDR Fund (XLV) during the same timeframe.
In a longer-term view, PODD’s stock has also faced a marginal decline year-to-date while lagging behind XLV’s 4.7% gain. However, shares of Insulet have increased by an impressive 53.8% over the past year, contrasting XLV’s 1.7% drop in the same period.
Notably, PODD has traded above its 50-day and 200-day moving averages since last year. However, it has fallen below its 50-day moving average since late February.
Despite Insulet reporting a better-than-expected Q4 2024 adjusted EPS of $1.15 and revenue reaching $597.5 million on February 20, its stock dropped by 1.9% the following day. The operating margin fell by 258 basis points year-over-year, mainly due to a 22.6% rise in selling, general, and administrative expenses, alongside a 44.3% increase in R&D costs. Moreover, Insulet projected a sharp 45% to 55% decline in its Drug Delivery revenue for 2025, overshadowing an anticipated 17-21% growth in Omnipod revenue.
In comparison, PODD has outperformed Abbott Laboratories (ABT), which posted a 17.5% gain over the past year. Meanwhile, ABT has recorded a 16.4% rise year-to-date, surpassing PODD’s performance.
Due to Insulet’s strong performance over the past year, analysts express optimism about its future. The stock has a consensus rating of “Strong Buy” from the 22 analysts covering the company, and it is currently trading below the mean price target of $317.90.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data herein is exclusively for informational purposes. For more details, please review the Barchart Disclosure Policy here.
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