Insulet stock soared out of a buy zone Friday after the insulin-pump maker "continued the beat-and-raise cadence it has seen in 2024," according to a William Blair analyst.
The strong third-quarter report follows the international launch of its Omnipod 5 insulin pump. The company also won Food and Drug Administration clearance in August for its automated insulin delivery system using Omnipod 5 in people with type 2 diabetes.
"Though 2025 commentary was more directional, management remains bullish on its growth prospects next year," William Blair's Margaret Kaczor Andrew said in a report. "With several shots on goal to support further growth in both type 1 and type 2 adoption next year, we believe the 2025 outlook is shaping up favorably."
Insulet stock jumped 9.4% to 268. Shares broke out of a flat base, topping a buy point at 243.98 on Nov. 6. The Friday move put Insulet shares beyond the 5% chase zone, which runs up to 256.18, according to MarketSurge chart analysis.
Insulet Stock: Large International Beat
Overall, Insulet reported $543.9 million in sales, growing almost 26% to beat expectations for $519.5 million, BTIG analyst Marie Thibault said in a report. That company also topped its own guidance for $510 million to $524 million in sales.
"This was driven by a large beat in international Omnipod sales," she said in a report. "U.S. Omnipod revenue of $395.6 million came in about $4 million higher than expected, while outside U.S. Omnipod revenue of $138 million was about $15 million above the Street's forecast."
Andrew, the William Blair analyst, says it's still early innings for automated insulin delivery in people with type 1 diabetes. This system involves linking an insulin pump to a continuous glucose monitor. The two devices work together to automate the insulin delivery process. Insulet's device can be linked to CGMs from Abbott Laboratories and Dexcom.
There's also a nascent opportunity in type 2 diabetes. But it's set to "progressively accelerate," she said.
"Insulet is in the pole position to benefit as the only device with type 2 clearance," she said.
She has an outperform rating on Insulet stock.
Insulet Raises 2024 Omnipod Outlook
Insulet didn't provide an outlook for 2025.
"Though commentary confirmed that the strong starts seen in the second half of 2024 should be meaningful to 2025 revenue," BTIG's Thibault said. "With its recurring revenue model, large installed patient base, exciting new market opportunities and fast progress on profitability, we think PODD remains a top-quality medtech name."
She rates Insulet stock a buy with a 270 price target.
For the year, Insulet now expects full-year Omnipod sales to grow 21% to 22%, up from its prior guidance for 18% to 21% growth. The outlook includes sequential and year-over-year growth in new consumer starts in the U.S. Insulet also expects international new consumer starts to grow vs. the year-earlier quarter.
Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.
