Analysts Just Trimmed Their Price Targets of These 5 Stocks

4. Insulet Corporation (NASDAQ:PODD)

Number of Hedge Fund Holders: 40

Shares of Insulet Corporation (NASDAQ:PODD) fell for two straight days after Citigroup trimmed its price target for the Massachusetts-based medical device company from $310 per share to $250 per share on Monday, July 11, 2022.

Citi analyst Joanne Wuensch expects a tough second quarter for the medical supply and technology group, which includes Insulet Corporation (NASDAQ:PODD). Wuensch also pointed towards difficult year-over-year comparisons and increasing macro headwinds. She downgraded Insulet Corporation (NASDAQ:PODD) from “Buy” to “Neutral.”

Insulet Corporation (NASDAQ:PODD) also appeared in the first-quarter 2022 investor letter of investment management firm ClearBridge Investments. The letter stated:

“Health care has always been a core foundation of the portfolio and we have been diversifying our health care exposure to include services and solutions beyond our traditional overweight to biopharmaceuticals and managed care. We first purchased Insulet (NASDAQ:PODD), a leading provider of insulin pumps for diabetes patients, in the fourth quarter of 2021, and we have aggressively added to the position since then. The company is currently the only meaningful manufacturer of patch pumps, the preferred form factor for many patients as compared to traditional tubed pumps. We believe Insulet has a long runway for growth given its large and underpenetrated market, which is only one-third penetrated in Type 1 diabetes and low-single-digit penetrated in the insulin- intensive Type 2 diabetes population. Additionally, we see the launch of the company’s next generation offering, Omnipod 5, which received FDA clearance in January, as an accelerant to growth. Insulet has strong gross margins and is profitable today, though we still see room for significant operating margin expansion ahead.”