Insulet Corp. Received its Third Buy in a Row

By Carrie Williams

After Jefferies and Leerink Swann assigned a Buy rating to Insulet Corp. in the last month, the company received another Buy, this time from Benchmark Co.. Analyst Jan Wald reiterated a Buy rating on Insulet Corp. (NASDAQ: PODD) today and set a price target of $40. The company’s shares opened today at $35.50.

Wald observed:

“We have increased spending, particularly in R&D, as the company plans to invest in a number of areas and doesn’t expect positive EBIT on a regular basis until 2018. We retain our $40 price target.”

According to TipRanks.com, Wald is a 5-star analyst with an average return of 12.4% and a 61.5% success rate. Wald covers the Healthcare sector, focusing on stocks such as Boston Scientific Corp., Cardiovascular Systems, and Staar Surgical Company.

Currently, the analyst consensus on Insulet Corp. is Moderate Buy and the average price target is $44.50, representing a 25.4% upside.

In a report released today, BTIG also upgraded the stock to Buy with a $42 price target.

Based on Insulet Corp.’s latest earnings report from June 30, the company posted quarterly revenue of $87.33M and quarterly net profit of -$4.2M. In comparison, last year the company earned revenue of $87.3M and had a net profit of -$18.93M.

Based on the recent corporate insider activity of 38 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of PODD in relation to earlier this year. Last month, Patrick Sullivan, the President & CEO of PODD bought 3,075 shares for a total of $99,968.

Insulet Corp. is an innovative medical device company, which engages in the development, manufacture, and marketing of an insulin infusion system for people with insulin-dependent diabetes. It’s current product offering consists of diabetes supplies, including the OmniPod System as well as other diabetes related products and supplies such as blood glucose testing supplies, traditional insulin pumps, pump supplies, and pharmaceuticals. The company was founded by John L. Brooks III and John T. Garibotto in July 2000 and is headquartered in Billerica, MA.