Sometimes I have the opportunity to recommend investing in companies that are truly trying to improve people’s lives. Today I’ll be discussing one of those companies, Senseonics Holdings (NYSEAMERICAN:SENS). So if you’re interested in owning a stake in a company that you can feel really good about, you might want to consider SENS stock.
I’m not advising that you load up on this stock. However, after learning about Senseonics’ path to regulatory approval of its potentially life-altering medical technology, you might be motivated to take a small, bullish position in the name.
The problem is that some folks want to take a dismissive attitude towards SENS stock. Maybe that’s because it’s technically considered a penny stock, defined by the SEC as a stock that trades under $5 per share.
On top of that, M. Corey Goldman called it a “meme stock,” which isn’t exactly a compliment. That’s a real shame, as I firmly believe that both the company and the stock deserve more respect and consideration.
A Closer Look at SENS Stock
First let’s see if we can paint a picture of Senseonics’ price action during the past year.
What’s undeniable is that the stock is capable of moving very far, very quickly. At the end of 2020, the stock price was still under $1, but that changed dramatically early this year.
In mid-January, the bulls charged ahead forcefully, driving the SENS stock price all the way up to $2.85. Yet, that wasn’t even the end of the bull run.
By Feb. 16, the share price reached a 52-week high of $5.56. I don’t typically recommend chasing stocks after moves of that magnitude, as a retracement to the downside is practically inevitable.
Predictably, SENS stock cooled off and landed at $3.17 on March 12. So, if you’ve been sitting on the sidelines on this name, you have an opportunity to get in at a more favorable price point now.
I should also mention that Senseonics’ trailing 12-month earnings per share is around -77 cents. The company’s long-term shareholders will definitely want to keep an eye on its EPS, in the hopes that it will turn positive in the near future.
A Truly Unique Product
Senseonics is a medical device maker, and its main product is a continuous glucose monitoring (CGM) system called Eversense.
Before you consider investing in Senseonics’ shares, I would encourage you to thoroughly read the company’s investor presentation.
It will give you a sense of what makes Eversense unique, and how it could have a major positive impact on diabetes patients and other users of CGM systems.
Just the list of “first and only” features should impress any prospective investor. In particular, among the CGM systems, Eversense’s unique features (according to the company) include:
- A sensor that’s MRI compatible
- Lasts for months instead of just days
- A transmitter that’s removable
- Does not require self-insertions
- An implantable sensor
- A fresh adhesive patch that’s gentle on skin
- On-body vibe alerts for hypo and hyper warnings
- 8.5% mean absolute relative difference (MARD)
Just a Meme?
Look, I’m not offended by Goldman calling SENS stock a meme stock. He’s just reporting on the Reddit-fueled short-squeeze frenzy of 2021.
Yet I don’t believe that Senseonics shares should be lumped in with other high-flying stocks. The company has a perfectly viable business, and any increase in its share price is justifiable.
Importantly, Senseonics has achieved a number of regulatory milestones with Eversense, and it will continue to do so.
For example, in 2019 Senseonics was granted MRI compatibility for Eversense by the FDA. MRI compatibility was also granted for Eversense by Europe’s Conformitè Europëenne (CE) in 2020.
Moreover, this year Senseonics anticipates approval from both the FDA and CE of its new 180-day sensor for Eversense.
The Bottom Line
Just because SENS stock made a sizable move in early 2021 doesn’t necessarily mean that it’s a meme stock.
It’s time for the investing community to take Senseonics seriously because the company is achieving significant milestones and offering the promise of improved outcomes for patients.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article.
