© Reuters. Is Senseonics a Buy Under $4?
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. But the stock has declined 2.8% over the past five days, reflecting investor concerns over its underwhelming 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. So, it could take a while before the diabetes monitoring product starts generating revenues. Furthermore, the heavily shorted stock’s lofty valuation could make investors anxious.
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