There’s no way around it: you’ve got to have some risk tolerance to invest in Senseonics Holdings (NYSEAMERICAN:SENS), as SENS stock is known to make some swift moves. That’s not a bad thing if you can handle some short-term volatility. InvestorPlace contributor Mark R. Hake has even suggested that Senseonics’ share price could rise five to 10 times over the next five years.
It’s exciting to consider the possibilities, but let’s not get ahead of ourselves. Informed investors should learn all they can about any company before wagering their hard-earned capital on it.
So let’s see if we can make some sense of Senseonics — including the company’s recently reported data, which suggests a very healthy fiscal position.
SENS Stock at a Glance
First things first: technically speaking, SENS stock is considered a penny stock, defined by the SEC as a stock that trades under $5 per share. Also, M. Corey Goldman called it a meme stock, which probably wasn’t meant as a compliment.
On the other hand, being a penny stock isn’t, by itself, a bad thing. It just means that the stock might be somewhat more prone to volatility. And as far the “meme stock” label is concerned, getting the attention of Reddit and/or Robinhood traders isn’t necessarily a reflection on the company.
In any case, the bulls definitely tried to push SENS stock out of penny-stock territory in February. They briefly succeeded when the share price touched a 52-week high of $5.56.
Fast-forward a few months, and you may have another chance to buy the shares at a discount. As of June 1, Senseonics shares were available for $2.14 each.
It’s entirely possible that another run for $5 and beyond is in the cards for SENS stock. For bargain hunters, the idea is to get in before the crowds jump on the bandwagon — not to chase after a vertical price move.
Striking the Right Balance
As a refresher, Senseonics is a medical technology company. Its primary focus is to develop and commercialize long-term implantable continuous glucose monitoring systems (CGMs) for patients with diabetes.
The company’s balance sheet is an excellent indication of how Senseonics is doing financially. And thankfully, the company’s first-quarter fiscal results suggest that Senseonics is both cutting costs and bringing in robust revenues.
Chiefly driven by sales in the E.U., Senseonics managed to generate $2.85 million in revenues during 2021’s first quarter. That’s quite an improvement compared to the $0.04 million posted during Q1 of 2020.
Not only that, but Senseonics’ first-quarter 2021 gross profit totaled $0.53 million, signifying a year-over-year increase of $20.16 million.
Furthermore, on a year-over-year basis, Senseonics reduced expenditures in multiple segments:
- Sales and marketing expenses decreased by $9.53 million
- Research and development expenses decreased by $2.11 million
- General and administrative expenses decreased by $0.72 million
Advanced Commercial Collaboration
As you can see, Senseonics started off 2021 on the right foot with firm financials. Still, investors might want to know what the company is doing to market and commercialize its potentially life-saving products.
In that vein, Senseonics is collaborating with Ascensia Diabetes Care. The latter company assumed full commercialization for the Eversense CGM system on Feb. 1 in select European markets.
Handing off the commercialization duties to Ascensia makes sense. That way, Senseonics can fully concentrate on developing its innovative CGM products.
Early in the second quarter, Ascensia launched a direct-to-consumer advertising campaign in the U.S. for Eversense. In addition to their existing marketing infrastructure in Europe, the company recently hired and trained 25 professionals to support Eversense sales in the U.S.
With the Ascensia partnership, Senseonics effectively has an army of commercialization professionals on its side. And with a firm balance sheet, SENS stock is well-positioned to benefit as the company advances its groundbreaking diabetes-care technology.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
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