Insulet Corp – Up, Up And Away

Shares of Insulet Corporation (PODD) touched an all-time high of $156.33 in intraday trading yesterday (Aug.22), and that’s a decent 28 percent gain in just 16 trading days.

Insulet Corp., a medical device company, is the leader in tubeless insulin pump technology and developer of the insulin delivery system Omnipod.

So, what’s driving this stock?

The Company has managed to grow its revenue over the years, while at the same time has shrunk its losses and turned to profitability, thanks to the wide acceptance of its OmniPod System. We alerted this stock to our premium subscribers on August 3, 2015, when it was trading around $33. (Report titled “Pumping Up Revenues…”)

In that year (2015), the Company recorded revenue of $324.2 million, a growth of 12% over 2014. The revenue growth has been even better in the successive years, and in 2018, the Company generated revenue of $563.8 million, up 22% compared to $463.8 million in 2017. Insulet turned a profit in 2018 for the first time.

In the first half of 2019, revenue was $336.7 million compared to $247.8 million in the year-ago period. Net income for the first half of 2019 was $5.78 million or $0.09 per share compared to a net loss of $8.26 million or $0.14 per share in the year-ago period.

Looking ahead to full-year 2019, the Company expects revenue to be in the range of $700 to $715 million, and that represents 24% to 27% growth over 2018.

Given the consistently strong financial results, the strategic imperatives taken by the Company and the large and growing market opportunity for Omnipod, Insult is a stock that bears watching.

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