Insulet Corporation (NASDAQ: PODD)
Insulet Corporation (PODD), a medical device company yesterday reported their third quarter 2016 financial results. Insulet reported third quarter earnings of a loss of $0.05 per share which beat analyst expectations of a loss of $0.08 per share. Insulet reported third quarter revenues of $94.9 million which beat analyst expectations of $90 million.
Insulet Corporation CEO’s Comments
“We are extremely pleased with our continuing positive momentum and the results our team is achieving through consistent execution of our winning strategy,” said Patrick Sullivan, Chairman and Chief Executive Officer. “We continued to achieve growth across all business lines, generating better-than-anticipated revenue and driving additional gross margin expansion in the third quarter. We are successfully implementing our commercial and operational initiatives, as well as continuing to take steps forward in our product pipeline development efforts, including our artificial pancreas program. Longer-term, we remain focused on delivering sustainable and profitable growth and increasing value for our shareholders.” Business Wire
PODD Technical Analysis
PODD opened trading yesterday at $32.06 which was down from the previous day’s trading close of $32.07. PODD closed trading yesterday at $30.73 and spiked up after market to $35.50, equivalent to a 16% increase from the closing price. Taking a look at the daily chart we can see the last time PODD traded above these levels we have to go back to November 1st when it traded at $36.65. Taking a closer look at the daily chart we can see that before the spike up PODD had been in an overall downward trend dating back to September 22nd when it traded at $45.07. PODD has a float of 50.01 million shares and traded 2.15 times the normal daily trading volume on Thursday. For trading purposes, I would like to see PODD open trading on Friday above $34 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.25 from my entry position fearing anything more than that and the stock would start to fill in the gap up.
Insulet Corporation, incorporated on July 20, 2000, is engaged in the development, manufacturing and sale of the OmniPod Insulin Management System (the OmniPod System), an insulin delivery system for people with insulin-dependent diabetes. The Company’s principal offices are located in Billerica, Massachusetts. The OmniPod System features two discreet devices and provides for automated cannula insertion, communicates wirelessly and integrates a blood glucose meter. The Company is producing the OmniPod on semi-automated manufacturing lines at a facility in China, operated by a subsidiary of Flextronics International Ltd. (Flextronics). The Company purchases OmniPods pursuant to its agreement with Flextronics. It also partners with pharmaceutical and biotechnology companies to tailor the OmniPod technology platform for the delivery of subcutaneous drugs across multiple therapeutic areas. It sells the OmniPod System and other diabetes management supplies in the United States through direct sales to customers or through its distribution partners. The OmniPod System is available in multiple countries in Europe, Canada and Israel. Reuters