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Here's How Much a $1000 Investment in Insulet Made 10 Years Ago Would Be Worth Today

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For most investors, how much a stock's price changes over time is important. This factor can impact your investment portfolio as well as help you compare investment results across sectors and industries.

The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.

What if you'd invested in Insulet (PODD - Free Report) ten years ago? It may not have been easy to hold on to PODD for all that time, but if you did, how much would your investment be worth today?

Insulet's Business In-Depth

With that in mind, let's take a look at Insulet's main business drivers.

Insulet Corporation is a leading developer, manufacturer and marketer of the Omnipod Insulin Management System. The system is equipped with a self-adhesive, small and lightweight disposable tubeless Omnipod device along with the wireless and handheld Personal Diabetes Manager (PDM). It is worn on the body for approximately three days at a time and allows virtually pain-free automated cannula insertion and blood glucose meter integration.

The Omnipod System is an innovative, discreet and easy-to-use continuous insulin delivery system for people with insulin-dependent diabetes, which the company has been selling since 2005. The Omnipod System consists of the following: the Omnipod Insulin Management System (“Omnipod”) and the Omnipod DASH Insulin Management System (“Omnipod DASH” or “DASH”), which is Insulet’s next generation digital mobile Omnipod platform.

Insulet reports revenues through three segments:

The company earns a huge share of revenues from the Omnipod System in the United States, Canada, Europe and Israel. It operates in these markets either directly or through intermediaries. In 2022, the company’s 74.7% of total revenues came from the U.S. Omnipod sales (up 45% from 2021), while 24.3% (up 5.7% from 2021) was generated from the International Omnipod sales.

Drug Delivery Business (0.9% of total revenues in 2022, down 89.7% from 2021): Insulet has tied up with pharmaceutical and biotechnological companies which use a customized form of the Omnipod System to deliver a drug at a certain administered volume and over a specified period of time.

In addition to the diabetes market space, Insulet has partnered with pharmaceutical and biotechnology companies to tailor the Omnipod System technology platform for the delivery of subcutaneous drugs across other therapeutic areas. Most of the drug delivery revenue consists of sales of Pods to Amgen for use in the Neulasta Onpro kit, an innovative delivery system for Amgen’s white blood cell booster to help reduce the risk of infection after intense chemotherapy.

Bottom Line

While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Insulet ten years ago, you're probably feeling pretty good about your investment today.

According to our calculations, a $1000 investment made in December 2013 would be worth $5,882.46, or a gain of 488.25%, as of December 27, 2023, and this return excludes dividends but includes price increases.

The S&P 500 rose 159.21% and the price of gold increased 65.13% over the same time frame in comparison.

Analysts are anticipating more upside for PODD.

Insulet has been progressing well with its four-pillar strategy with that targets focused market expansion and innovation. The company has been making significant progress with respect to its development roadmap of the Omnipod 5 system. International rollout of the device continues successfully. The company commercially launched Omnipod 5 in the United Kingdom in June and in August, this device reached Germany commercially. Further, Insulet registered continued strong adoption of Omnipod DASH in its international markets. In terms of innovation, in October, the company received the 510(k) clearance for the Omnipod 5 iOS app. However, macroeconomic concerns leading to mounting expenses do not bode well. Insulet’s heavy reliance on the Omnipod System and a tough competitive landscape add to the woes.

The stock has jumped 18.84% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 7 higher, for fiscal 2023; the consensus estimate has moved up as well.

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