Insulet (PODD) Hits A 52-Week High: What's Driving The Stock?
Zacks Investment Research | Nov 14, 2019 09:21PM ET
On Nov 14, shares of Insulet Corporation (NASDAQ:PODD) reached a new 52-week high of $179.31, closing the session marginally lower at $176.88. In fact, the stock has rallied nearly 22.1% since its third-quarter earnings announcement on Nov 5.
The company’s strong third-quarter earnings, backed by robust global uptake of the Omnipod system, and impressive full-year guidance prompted the rally.
Let us delve deeper into the growth propellers.
Insulet’s Q3 Earnings Snapshot
The company exited the third quarter on a promising note, with better-than-expected earnings and revenue numbers. The year-over-year improvement in revenues on the solid uptake of the Omnipod system, both in the United States and across international markets, has been encouraging.
In the third quarter, the company successfully expanded the Omnipod DASH coverage for commercial, Medicare and Medicaid beneficiaries. By the end of the third quarter, the coverage was expanded to more than 50% of all Medicare beneficiaries.
Gross profit in the reported quarter was up 20.7% from the prior-year quarter. Although total operating expenses escalated 11.5% from the year-ago quarter’s figure, the operating margin expanded 431 bps to 8.9% in the third quarter.
The lifted revenue outlook for 2019 too buoys optimism among the investors, indicating this bullish momentum to continue through the rest of the year.
Other Growth-Driving Factors
The market is upbeat about Insulet obtaining FDA approval in October for the use of the Fiasp (fast-acting insulin aspart) alongside its Omnipod Insulin Management System and the Omnipod DASH Insulin Management System for adults. Fiasp is the first-ever fast-acting mealtime insulin injection that does not require a pre-meal dosing recommendation.
Another crucial regulatory approval secured by Insulet in September was for the use of its Alternate Controller Enabled Infusion (ACE) Pump with the Omnipod DASH Insulin Management System. Following this, Insulet will be able to market its Omnipod DASH System as an integrated insulin pump (Omnipod DASH ACE Pump). Hence investors are optimistic about the growth prospects of the company.
Progress in Omnipod Horizon
At the end of the third quarter, Insulet was in the final stages of the Omnipod Horizon development and is well on track to start pivotal trials in the fourth quarter of 2019. The company is also on track to secure Omnipod’s FDA approval as a component of the Tidepool Loop automated insulin delivery system.
We believe that these efforts will continue driving the company’s performance, helping it reach new highs.
Meanwhile, Insulet had a great run on the bourses in the past year. Over the past year, the stock has surged 116%, outperforming the broader
Haemonetics has a projected long-term earnings growth rate of 13.5%.
NuVasive has an expected long-term earnings growth rate of 10.9%.
Get The News You Want
ResMed has a long-term earnings growth rate of 12.9%.
Free: Zacks’ Single Best Stock Set to Double
Today you are invited to download our just-released Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, SherazMian hand-picks one to have the most explosive upside of all.
This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.
Zacks Investment Research
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.