With a market cap of $18.4 billion, Insulet Corporation (PODD) is a leading developer of innovative insulin delivery systems for people with insulin-dependent diabetes. The company's flagship product, the Omnipod System, offers a tubeless, wearable insulin pump with wireless capabilities, providing a discreet and easy-to-use solution for continuous insulin delivery.
Companies valued at more than $10 billion are generally classified as “large-cap” stocks, and Insulet fits this criterion perfectly. Headquartered in Acton, Massachusetts, Insulet also partners with pharmaceutical and biotechnology companies to expand the application of its technology for the delivery of other subcutaneous drugs.
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The insulin infusion systems maker has fallen 10.7% from its 52-week high of $289.46. Over the past three months, shares of PODD have declined marginally, underperforming the 4.7% rise of the Health Care Select Sector SPDR Fund (XLV) during the same period.
Longer term, PODD is down marginally on a YTD basis, lagging behind XLV’s 4.7% gain. Nevertheless, shares of Insulet have climbed 53.8% over the past 52 weeks, surpassing XLV’s 1.7% decline over the same time frame.
PODD has been trading above its 50-day and 200-day moving average since last year. But, the stock has fallen below its 50-day moving average since late February.
Despite Insulet reporting better-than-expected Q4 2024 adjusted EPS of $1.15 and revenue of $597.5 million on Feb. 20, its stock fell 1.9% the next day. Operating margin declined by 258 basis points year-over-year, driven by a 22.6% increase in selling, general & administrative expenses and a 44.3% rise in research and development costs. Additionally, Insulet projected a sharp 45% - 55% decline in its Drug Delivery revenue for 2025, overshadowing the strong 17-21% Omnipod revenue growth forecast.
However, PODD has outperformed its competitor, Abbott Laboratories (ABT), which experienced a 17.5% gain over the past 52 weeks. However, ABT has risen 16.4% on a YTD basis, outpacing PODD.
Due to Insulet’s strong price action over the past year, analysts are bullish about its prospects. The stock has a consensus rating of “Strong Buy” from the 22 analysts covering the stock, and as of writing, it is 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 in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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