These are top 10 stocks traded on the Robinhood UK platform in July
On Friday, BTIG analysts boosted their price target on Insulet Corporation (NASDAQ:PODD) shares to $310, up from the previous $310, while maintaining a Buy rating on the stock. The medical device company, currently valued at $20.24 billion, has shown remarkable momentum with a 55% price return over the past six months. According to InvestingPro analysis, the stock is currently trading near its Fair Value, with 14 key investment tips available for subscribers. Insulet surpassed fourth-quarter revenue expectations, recording $597.5 million, a 17% increase year over year, and exceeding both the consensus estimate of $583 million and the company’s guidance range of approximately $571-$586 million.
The U.S. Omnipod revenue reached $443.7 million, marking a 12.4% rise year over year and coming in around $7.5 million above the consensus of $436.3 million. International Omnipod revenue also exceeded expectations, with a 33.1% increase on a constant currency basis year over year to $142 million, approximately $2 million higher than the consensus. Additionally, Drug Delivery sales hit $11.8 million, surpassing the $6.5 million consensus.
BTIG’s commentary highlighted that over 30% of new U.S. patients starting on Insulet’s products in the fourth quarter were Type 2 diabetes patients. The company’s management expressed optimism about the expansion of their U.S. sales force and the increase in prescribers for Type 2 diabetes. Despite the stock’s 60% surge since the August 2024 Type 2 diabetes label expansion, Insulet’s 2025 revenue growth forecast of 16-20% year over year, with a midpoint of 18% for U.S. Omnipod sales, fell slightly below the Street’s expectation of around 19% year over year.
Insulet cautioned about some lumpiness due to rebate-related factors from the pharmaceutical channel in 2024, which could create a 500 basis points year-over-year comparative headwind in the first quarter of 2025. However, this is expected to reverse throughout the rest of the year, with a stable year-over-year pricing dynamic for the full year. The management team also mentioned their goal to reach the high end of the guidance range.
The company’s margins were noted as commendable, with a 72.1% adjusted gross margin and an 18.3% adjusted EBIT margin for the quarter. Looking ahead to 2025, Insulet expects to expand full-year gross margins by 70 basis points and EBIT margin by 160 basis points compared to 2024. BTIG analysts are confident that these margin targets are achievable, citing sustainable profitability drivers such as increased U.S. pharmacy channel volume and manufacturing efficiencies.
While acknowledging that shares might pause as investors process the 2025 guidance, BTIG reaffirmed their positive stance on Insulet’s growth drivers, recurring revenue model, competitive edge with Type 2 diabetes and pharmacy, and profit margin. The firm raised their price target after applying the same approximately 7.5x EV/Sales multiple to their higher 12-24 month sales forecast.
In other recent news, Insulet Corporation reported impressive financial results for the fourth quarter of 2024, surpassing expectations. The company achieved an earnings per share of $1.15, exceeding the forecasted $1.03, and reported revenue of $597.5 million, which was higher than the anticipated $582.7 million. Despite these strong earnings, the company’s stock experienced a decline, reflecting some investor concerns over future growth. Insulet also announced a significant 17% increase in total revenue for the quarter, contributing to a full-year revenue of $2.1 billion, marking a 22% growth year-over-year. Additionally, the company reported that its gross margin improved to 72.1% in the fourth quarter. Analysts have taken note of Insulet’s performance, with the company continuing to expand its presence in the Type 2 diabetes market. Looking forward, Insulet projects total Omnipod revenue growth between 17% and 21% for 2025, with anticipated increases in both U.S. and international sales.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.