Tandem Diabetes Care (TNDM) Struggling to Move Back Above $38
Medical device company Tandem Diabetes Care (Nasdaq: TNDM) had an incredible run for the first eight and a half months of 2018. The stock jumped from $2.36 at the start of the year to a high of $52.55 in September. That is a gain of over 2,100%.
After hitting that all-time high in September, the stock has retreated slightly and it dipped down to a low of $26.40 in November. After dropping down to the November low, the stock has made several attempts to move back up, but it seems to be hitting resistance in the $38 area. The stock has moved above that price, but it hasn’t been able to close a day above it on three different attempts.
You can see on the chart the three attempts in just over a month and now the stock is overbought based on the daily stochastic readings. The stochastic readings also just made a bearish crossover on Wednesday.
Something that could be holding the stock back at this point is its fundamental indicators. The company has yet to turn a profit and it is currently operating at a profit margin of -67.9%.
Biotech and pharma companies are different in how they are valued by investors, but at some point the company has to start making money in order to justify the stock price. I’m not sure what that point is, but it seems like investors may have gotten ahead of themselves with Tandem when they ran it up so high last year.
Momentum Indicator for TNDM turns positive, indicating new upward trend
TNDM saw its Momentum Indicator move above the 0 level on May 01, 2025. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 78 similar instances where the indicator turned positive. In of the 78 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
TNDM moved above its 50-day moving average on May 01, 2025 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for TNDM crossed bullishly above the 50-day moving average on May 07, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 17 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TNDM advanced for three days, in of 279 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 205 cases where TNDM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 5 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 5 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TNDM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
TNDM broke above its upper Bollinger Band on May 01, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. TNDM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (7.077) is normal, around the industry mean (24.089). TNDM's P/E Ratio (666.667) is considerably higher than the industry average of (79.080). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (5.667). Dividend Yield (0.000) settles around the average of (0.018) among similar stocks. P/S Ratio (2.939) is also within normal values, averaging (42.249).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. TNDM’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 89, placing this stock worse than average.
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General Information
a developer and manufacturer of medical devices for the treatment of diabetes
Industry MedicalSpecialties