It is doubtless a positive to see that the Tandem Diabetes Care, Inc. (NASDAQ:TNDM) share price has gained some 30% in the last three months. But over the last three years we've seen a quite serious decline. Tragically, the share price declined 68% in that time. So the improvement may be a real relief to some. The rise has some hopeful, but turnarounds are often precarious.

If the past week is anything to go by, investor sentiment for Tandem Diabetes Care isn't positive, so let's see if there's a mismatch between fundamentals and the share price.

Tandem Diabetes Care isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Over three years, Tandem Diabetes Care grew revenue at 13% per year. That's a fairly respectable growth rate. That contrasts with the weak share price, which has fallen 19% compounded, over three years. To be frank we're surprised to see revenue growth and share price growth diverge so strongly. So this is one stock that might be worth investigating further, or even adding to your watchlist.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. So it makes a lot of sense to check out what analysts think Tandem Diabetes Care will earn in the future (free profit forecasts).

A Different Perspective

Tandem Diabetes Care shareholders are down 35% for the year, but the market itself is up 26%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 10% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. It's always interesting to track share price performance over the longer term. But to understand Tandem Diabetes Care better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Tandem Diabetes Care you should be aware of.

Tandem Diabetes Care is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.