What Happened?
Shares of diabetes technology company Tandem Diabetes Care (NASDAQ: TNDM) jumped 13.8% in the afternoon session after Wells Fargo analysts upgraded the company's stock to Overweight from Equal Weight.
The bank also raised its price target to $27 from $21, citing a positive outlook for the company's pharmacy channel. The upgrade followed a meeting with Tandem's management. Analysts noted that while the first quarter's pharmacy results were somewhat disappointing, the company successfully rebuilt its formulary coverage—the list of prescription drugs covered by an insurance plan—from zero to approximately 40% in a single off-cycle quarter.
Looking ahead, early data from the second quarter appeared encouraging, with April's sales volume exceeding March's, indicating growing momentum.
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What Is The Market Telling Us
Tandem Diabetes’s shares are extremely volatile and have had 49 moves greater than 5% over the last year. But moves this big are rare even for Tandem Diabetes and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 24 days ago when the stock dropped 10.9% on the news that the company's disappointing full-year revenue guidance for 2026 overshadowed its otherwise solid first-quarter results.
While the diabetes technology company's first-quarter revenue of $247.2 million grew 5.5% year-over-year and its GAAP loss of $0.30 per share was better than analysts had feared, investors focused on the bleak outlook. Tandem reconfirmed its full-year revenue guidance of $543 million at the midpoint, a figure that was nearly 50% below Wall Street's expectations. This significant downward revision in its forecast signaled major headwinds for the company, prompting a sharp sell-off in its shares despite the positive aspects of the quarterly report.
Tandem Diabetes is down 9.5% since the beginning of the year, and at $19.51 per share, it is trading 31% below its 52-week high of $28.26 from February 2026. Investors who bought $1,000 worth of Tandem Diabetes’s shares 5 years ago would now be looking at only $232.08.
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