Insulet's CEO Lets His Money Do The Talking

Shares of Insulet Corporation PODD are down 22.7 percent in the past three months in the face of increasing competition and repeated attacks by SkyTides.

Amid all the bad news for the insulin delivery device maker, at least one person believes the dip in share price is a buying opportunity.

A new filing indicates CEO Patrick Sullivan has purchased 40,000 shares of Insulet stock at an average price of $33.89. The CEO’s buying is certainly reassuring to company shareholders. In the face of SkyTide’s accusations, the CEO seems to be letting his $1.3 million investment do the talking.

SkyTides has accused Insulet President Shacey Petrovic of misleading investors on a recent conference call. Medtronic PLC MDT’s recently-approved 670G insulin pump will likely be a major threat to the existing insulin delivery market. However, SkyTides takes exception to the following statement Petrovic recently made:

“As we’ve stated many times, we are laser-focused on new patient starts coming from multiple daily injection patients, not from patients already using competitive pump…our messaging is focused on the multiple daily injection patients. That is no where 670G is focused.”

After speaking with multiple Medtronic team members, SkyTides is convinced the 670G device threatens a large portion of Insulet’s business and the stock has significant downside.

SkyTides has also accused Insulet of not disclosing patient deaths related to its Omnipod device.

Shares of Insulet are up 5.8 percent at $32.25 in early Monday trading.