Is Senseonics a Buy Under $4? By StockNews
The shares of continuous glucose monitoring (CGM) device maker Senseonics Holdings (NYSE:) have soared 343.9% in price year-to-date, driven by social-media-triggered retail trading. But given the medical technology company’s poor financial health and uncertainty surrounding FDA approval of its Eversense CGM system, is it worth betting on the stock at its current price level? Let’s find out.Medical technology company Senseonics Holdings, Inc. (SENS), which is headquartered in Germantown, Md., designs, develops, and commercializes continuous glucose monitoring (CGM) systems. SENS’ shares have surged 343.9% in price year-to-date, fueled by the frantic trading of amateur investors based on discussions on the Reddit forum. The stock’s price has fallen 2.8% in the last five days due to investor worries about the second quarter earnings report.
Closing yesterday’s session at $3.87, the stock is currently trading 30.4% below its 52-week high of $5.56.
Although SENS’ implantable Eversense CGM System to help patients manage their glucose levels holds promise, the application for the device is still under FDA review. It could be a while until the revenue-generating diabetes product is available. Furthermore, the heavily shorted stock’s lofty valuation could make investors anxious.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Trading the financial markets is one of most risky investment options. Please make sure you are fully aware about the costs and risks involved.