December 5, 2023


Put A Technology

Riding the Femtech Wave: Why Progyny is a Key Stock for Investors to Track


The inventory cost of Progyny (NASDAQ: PGNY), a femtech business that specializes in fertility and household setting up rewards options, has loved significant progress due to the fact its Oct 2019 listing – exhibiting that the electronic women’s wellness business has grown into a formidable drive in the wake of the Covid-19 pandemic. 

Regardless of modern declining costs sparked in no small portion by a director promoting $327,285.70 in stock, Progyny was awarded an ordinary ‘buy’ rating by the 10 brokerages covering the stock. 

Numerous analysts have scrutinized PGNY shares in new months. Jefferies Economic Group begun protection on Progyny in a research function in December, issuing a ‘buy’ ranking and a $60 target value. Despite the fact that Citigroup slice their ‘buy’ score to a ‘neutral’ ranking for the stock in November, the analysts also lifted their goal cost for the stock from $60 to $64

Nonetheless, Zacks Investments and TheStreet not too long ago slice their rankings for Progyny in 2022, indicating that it may possibly be worth offering up. JPMorgan Chase & Co also lifted their price objective for the business from $65 to $79 and gave the enterprise an ‘overweight’ score in an October investigation report. 


As PGNY’s inventory general performance record demonstrates, the stock has climbed more than 138% adhering to its Oct 2019 floatation, but buyers are likely to be worried at how the main femtech firm has fared amidst the screening market situations of late 2021 – with inflation and clean Covid-19 fears paving the way for mass provide-offs. 


The past six months demonstrates that the inventory has drifted some 43.26% absent from its all-time superior price of $63.43, which Progyny arrived at in September 2021. 

A further contributing aspect to the stock’s the latest downturn has been the somewhat below-par Q2 revenues in 2021. Though the company’s earnings have been better than the consensus estimates around the same period, its inventory has drifted persistently since Q3 2021. 

Progyny also posted its direction for the total-year 2021 with revenues estimated to achieve $520 million and EPS set to be around $.47 at the midpoint of their vary. 

“Progyny’s fertility benefits answer incorporates differentiated reward program layout, personalised concierge-type participant guidance products and services and a selective network of fertility professionals,” explained Maxim Manturov, head of expense assistance at Liberty Finance Europe. “The company also delivers Progyny Rx, a comprehensive pharmacy positive aspects solution that provides its members obtain to the medicines they will need during procedure. In addition, it offers employers with reimbursement programmes for surrogacy and adoption.”

Progyny documented its Q2 benefits last month with revenues slightly under and earnings greater than the consensus estimates. The company presented its steerage for the complete-12 months 2021 with revenues believed to be $520 million and EPS to be all-around $.47, at the mid-position of their range. The mixed results led to a gradual decrease of in excess of 20% in PGNY inventory in the initially fifty percent of August. Even so, the inventory has witnessed a sharp restoration in excess of the past month or so, led by an improved optimism for its small business prospective buyers.

The Increase and Rise of Femtech

The volume of corporations in the United States that supply fertility added benefits has skilled sustained development in current decades as the technology powering femtech grows. Gains strategies can variety from infertility prognosis and medication to in vitro fertilization (IVF) and intrauterine insemination (IUI). Other, a lot more thorough strategies include egg freezing, the procurement of donor eggs or embryos, and gestational surrogacy. In 1 critical stage for the industry, these plans have developed to incorporate users of the LGBTQ+ community, as properly as solitary mothers and fathers. 

The Personnel Benefits Study 2020 by the Global Basis of Staff Rewards Options (IFEBP) implies that 24% of corporations now go over IVF remedy, up from just 13% in 2016. The amount of organizations covering egg harvesting also greater from 2% to 10% in excess of the exact same interval. Also, fertility medication climbed threefold from 8% to 24%. 

Companies are more and more eager to undertake fertility rewards as part of their diversity, equity, and inclusion initiatives. By supplying protection for treatment and medicine, they can not only build far better ESG reporting and also ensure that they can entice and keep far more expertise. 

This heightened curiosity and recognition of femtech can aid to speed up development in a fledgling industry that’s ripe for adoption. 

Whilst VC fascination has not been mainly forthcoming in recent yrs, the pandemic-pushed increase of electronic transformation and digital wellness has aided sizeable levels of publicity for women’s overall health purposes. 

Progyny may well have confronted substantial downturns in share price tag in latest months, but the outlook for the femtech business as a total must be regarded as largely positive. 

As an early trailblazer in the sector, Progyny will have to be regarded as a business that possesses a great deal of upside likely. As the market grows, we can assume to see more outperformance for this major femtech corporation.


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