Patience is a virtue, especially for medical device company investors. If you’re considering a position in Senseonics Holdings (NYSEAMERICAN:SENS), it’s important to understand that SENS stock won’t necessarily shoot to the moon in a day.
That’s because the success or failure of a business in this niche depends on a number of factors, including regulator approval and commercialization efforts.
Fortunately, Senseonics maintains not only a national outlook for its products, but a global one as well. And as InvestorPlace contributor Will Ashworth predicted, SENS stock “could be out of penny-stock status in no time.”
Or, it could take weeks or months — and that’s exactly my point. Medical technology market investors should be willing to give their trades some time, and that certainly applies to Senseonics.
SENS Stock at a Glance
To put it mildly, SENS stock has had its fair share of ups and downs. At the end of 2020, the share price was still under $1, but it wouldn’t stay there in 2021.
January and February were launch-pad months for Senseonics, with the shares rocketing to $5.56 on February 17, 2021. However, the price chasers were punished as the stock retraced to $1.71 in May.
Some folks might posit that SENS stock was the target of meme-stock traders and the Reddit crowd.
That’s certainly possible, but long-term investors should spend more time focusing on Senseonics as a promising business.
As of July 7, the stock was slightly above the $3 level and seemed directionless. But again, patience should pay off as Senseonics should be viewed as more of a growth story than a get-rich-quick trade.
Senseonics’ flagship product is known as the Eversense CGM system, where “CGM” stands for Continuous Glucose Monitor.
For the medical sub-community that’s focused on diabetes care, Eversense could be a real game changer.
It features a water-resistant transmitter with on-body vibe alerts, as well as a very small fluorescent sensor.
Plus, Eversense includes a mobile app with real-time glucose readings.
It’s the only Food and Drug Administration approved long-term continuous glucose monitor. Thus, if you’re going to bet your hard-earned capital on the success of a single device, this could be a good choice.
As Ashworth spotted in a Schedule 14A filing, PHC Holdings Corporation owned (and for all we know, might still own) a whopping 68,300,652 shares of Senseonics.
Now, that’s what I would call a confident investor. PHC’s stake equates to 13.8% of the beneficially owned Senseonics shares.
You know who else seems pretty confident in the company? Senseonics’ current directors and executive officers, who collectively hold 24,421,606 shares.
Insider ownership demonstrates that they have skin in the game — and when it comes to investing, actions speak louder than words.
Major Revenue Driver
Turning to another SEC form, a Form 8-K reveals that Senseonics is collaborating with a Swiss company, Ascensia, to distribute Senseonics’ 90-day and 180-day sensors throughout Europe.
Granting Ascensia the global rights to distribute Eversense could turn out to be a major long-term revenue driver for Senseonics.
As Senseonics’ first-quarter fiscal results show, the company took in revenues to the tune of $2.85 million. That’s a vast improvement over the $0.04 million in revenues recorded for the first quarter of 2020.
Now, let’s break that down and see where the money’s coming from.
For the first quarter of 2021, Senseonics’ U.S. revenues totaled $0.31 million. But then, the quarterly revenues coming from outside the U.S. amounted to $2.53 million.
The press release observes that Senseonics’ quarterly revenues were “primarily driven by sales in the E.U.”
The Eversense XL CGM commenced full commercialization in select European markets on February 1, 2021. As we can see, this effort is working out quite well, so far.
It should be too long before SENS stock finds its direction — hopefully, to the upside.
In the meantime, it’s okay to hold your shares for the long run as Senseonics commercializes tech-enhanced diabetes care across multiple continents.
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. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.