What Happened?
Shares of medical device company Penumbra (NYSE: PEN) fell 5.5% in the afternoon session after the company announced results from its landmark STORM-PE randomized controlled trial. The study found that using Penumbra's computer-assisted vacuum thrombectomy (CAVT) system with anticoagulation was superior to using anticoagulation alone for treating patients with acute intermediate high-risk pulmonary embolism (PE), a type of blood clot in the lungs. Specifically, the trial showed a better reduction in right heart strain for patients treated with Penumbra's device. The results were called "resoundingly positive" and demonstrated a more than 50% improvement in treatment effect within two days, without an increase in major adverse events.
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What Is The Market Telling Us
Penumbra’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 20 days ago when the stock gained 3.2% on the news that Needham upgraded the stock to 'Buy' from 'Hold' and set a price target of $326. The firm expected the company's growth in 2026 to meaningfully accelerate due to upcoming product launches, including Thunderbolt and Ruby XL. The analyst also pointed to expected positive trial results and an easing of business challenges in China as reasons for the improved outlook. According to the research note, the Thunderbolt device should nearly double Penumbra's revenue per stroke procedure while also driving stronger growth and gross margin improvement. Needham noted that Penumbra was positioned for a significant upside to consensus earnings estimates for 2026.
Penumbra is down 2.5% since the beginning of the year, and at $234 per share, it is trading 23% below its 52-week high of $303.76 from February 2025. Investors who bought $1,000 worth of Penumbra’s shares 5 years ago would now be looking at an investment worth $1,006.
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