Best value stock analysis as on 13 April 2024.
NASDAQ: Insulet Corporation (PODD)
- Insulet Corporation manufactures and sells insulin delivery systems for individuals with insulin-dependent diabetes.
- The company sells its products through distributors, pharmacies, and direct sales in the US, Canada, Europe, the Middle East, Australia, and globally.
- Insulet Corporation has a compelling business model, and management is effectively expanding the company’s revenue.
- Management anticipates ongoing expansion of its total addressable market (TAM) through continuous enhancement of its product portfolio.
- Insulet Corporation was incorporated in 2000 and is headquartered in Acton, Massachusetts.
Shareholding Patterns of Insulet Corporation (PODD)
| Holder | Shares | Date Reported | % Out | Value |
|---|---|---|---|---|
| Capital Research Global Investors | 9,476,623 | Dec 30, 2023 | 13.53% | 1,660,493,893 |
| Vanguard Group Inc | 8,029,608 | Dec 30, 2023 | 11.47% | 1,406,947,923 |
| Blackrock Inc. | 6,102,546 | Dec 30, 2023 | 8.72% | 1,069,288,117 |
| FMR, LLC | 5,873,891 | Dec 30, 2023 | 8.39% | 1,029,223,188 |
| Wellington Management Group, LLP | 3,246,124 | Dec 30, 2023 | 4.64% | 568,785,851 |
| State Street Corporation | 2,884,915 | Dec 30, 2023 | 4.12% | 505,494,809 |
| Capital World Investors | 2,211,778 | Dec 30, 2023 | 3.16% | 387,547,743 |
| Geode Capital Management, LLC | 1,609,418 | Dec 30, 2023 | 2.30% | 282,002,223 |
| ClearBridge Investments, LLC | 1,327,851 | Dec 30, 2023 | 1.90% | 232,666,053 |
| Citadel Advisors Llc | 1,331,394 | Dec 30, 2023 | 1.90% | 233,286,858 |
The Evolution of Insulet Product “Omnipod”:
What we think are Pros of business:
- Insulet Corporation has been a consistent, long-term growth player in the diabetes delivery sector.
- Insulet Corporation strives to further innovate the diabetes market.
- Sales increased from $200 million in 2012 to $1 billion in 2021, yet the share price has surpassed the growth of revenue and earnings per share.
- The release of Omnipod 5 has significantly boosted revenue for Insulet.
- Insulet targets a market of over 11 million diabetes patients and has quintupled its sales over the last decade.
What we think the RISK are:
- Insulet’s top-line growth is too glorified, but recent profit and cash flow weaknesses, combined with the stock’s high valuation, are worrisome.
- Increased costs are anticipated to adversely affect results in the coming years. Revenue from drug delivery continues to decline sharply.
- Despite operational improvements, shares of Insulet Corporation, creator of the Omnipod Insulin Management System, have faced downward pressure.
Fundamentals:
- Market Cap: 12.27 Billion
- Revenue: 1.7 Billion
- 52 Week Range: 125.82 – 335.91
- EPS: 2.96
- PE: 59.00
- Beta: 0.978
Technical Analysis for a long-term perspective:
- Stock was in very strong bearish trend but now it has change its direction into upward.
- Stock price is taking support at its multiyear support zone which is the good buying level for long term investors.
- Currently stock is trading at 50% discount from its all time high.
- Change its trend from lower low pattern into higher high pattern. stock market crash
- RSI is very strong and in a bullish momentum.
Entry = 175
Stop Loss = 160
Target = 220 / 267 / 350
Our Final Thought:
Insulet Corporation has a unique business model and is growing steadily. However, it’s essential to be cautious at the current price. The company’s recent addition to the S&P 500 and the potential of its Omnipod 5 device are positive signs, but it’s important to proceed carefully considering all factors. Omnipod 5 boosts revenue but raises expenses. High costs may hurt results. You can get almost 100% returns within in the next 2 years as per technical charts.
Please note: This is only an opinion and not financial advice. Direct stock investing is subject to business and market risks. Therefore, it’s highly recommended to do proper risk management and your own due diligence before investing.
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