Livongo Health Stock (LVGO): Should I Buy It Now?

By Amit Chowdhry ● Jun 29, 2020
  • Should you buy Livongo Health Inc (NASDAQ: LVGO) now? Here is some information to help you decide.

Livongo Health Inc (NASDAQ: LVGO) is a company that engages in the development and operation of a consumer digital health platform. Some of the company’s solutions include Livongo for Diabetes, Livongo for Hypertension, Livongo for Prediabetes and Weight Management, and Livongo for Behavioral Health by myStrength.

Essentially, Livongo empowers people with chronic conditions to live better and healthier lives. And the company pioneered the category of Applied Health Signals to offer members clinically-based insights that focus on the whole person and make it easier to stay healthy.

Last month, Livongo Chief Executive Officer Zane Burke said that the COVID-19 pandemic has reinforced the value of the service that the company provides to its members and clients. For the first quarter, the company added a record 380 new clients, bringing the total to 1,252 overall — which is up 44% quarter-over-quarter. And member enrollment was ahead of expectations with over 328,000 Livongo for Diabetes members as of the end of the quarter.

The Health Transformation Alliance (HTA) and Welltok announced that they were creating a curated marketplace of health and wellbeing programs on behalf of over 50 HTA member/owners across the nation. And Livongo Health was announced as the first health and wellbeing partner to be selected for the new marketplace in March.

“Congress has acted to deliver the emergency aid and economic relief Americans and businesses need to get through this phase of the COVID-19 pandemic. While that is a great first step, we anticipate the government will take further actions to expand the use of remote monitoring, managing and testing to better protect our most vulnerable populations with diabetes, hypertension, keeping them at home, healthy and out of harm’s way,” said Burke. “Livongo also has an important role to play in the COVID-19 pandemic solution given that our members represent some of the most vulnerable populations with diabetes and hypertension. As the CDC recently reported, 78% of the COVID-19-related ICU admissions were where people with preexisting or chronic conditions.”

Through its AI+AI engine, Livongo’s team of data scientists aggregate and interpret substantial amounts of health data and information to create actionable, personalized, and timely health signals delivered to Livongo Members exactly when and where they need them. And the Livongo approach delivers better clinical and financial outcomes while creating a different and better experience for people with chronic conditions.

Studies That Demonstrate How Remote Monitoring Technologies Utilize Unique Data Insights

Earlier this month, Livongo Health Inc (NASDAQ: LVGO) announced the findings of two studies that demonstrate how remote monitoring technologies can utilize continuous and unique data insights through its AI+AI engine to better inform care decisions and outcomes. These findings were presented at the American Diabetes Association’s 80(th) Scientific Sessions: A Virtual Experience.

The first study — which is called Predictors of Emergency Department and Inpatient Admissions after Hypo- and Hyperglycemic Events: Leveraging Remote Monitoring Data of People with Diabetes — included 7,633 study participants and used Livongo’s cellular-enabled blood glucose monitor and remote monitoring capabilities to determine specific predictors which may lead to a hypoglycemic or hyperglycemic event. And the study determined that a gap in days between checking, more ‘Missed Medication’ tags, fewer ‘Before Breakfast’ tags, new users of oral diabetes medications, and other factors were predictors associated with future emergency department and inpatient visits due to a hypoglycemic event. Plus It also found that models pairing blood glucose values with rich data including time of day, meal tags, medication use, and feeling tags are more likely to predict those who are at a higher-risk of costly care interventions than models using blood glucose data alone.

The second study — Is Activation, Behaviors, and Attitudes to Managing Care Associated with Utilization of a Remote Diabetes Monitoring Platform (RDMP) and Improvement of A1c — was conducted in collaboration with Eli Lilly & Company and it included 1,089 participants. And the study found a direct correlation between improvements in Diabetes Empowerment Scale-Short Form (DES-SF) and increased platform utilization. Plus participants who used the Livongo platform more regularly and those who achieved measurable improvements in Diabetes Distress Scale 17 (DDS17) experienced better glycemic control.

“Through Livongo’s ability to collect a breadth of real-time data points, including meal tags and feeling tags, we are able to build out comprehensive Member profiles and direct interventions and features from our platform that lead to improved clinical outcomes,” said Livongo chief medical officer and senior author of the studies Dr. Bimal Shah. “As Livongo’s AI+AI engine aggregates more data, our platform continues to improve by providing a more personalized care experience. We are able to leverage a combination of machine learning and clinical studies to continue to improve outcomes, drive down health care costs, improve utilization, and empower people to better manage their diabetes.”

Through its AI+AI engine, Livongo uses a connected ecosystem to aggregate data — which includes cellular-enabled devices and integration with continuous glucose monitors and then applies advanced data science to create detailed member profiles that include personal health and medication trends. And Livongo provides members with cellular-enabled devices, supplies, and access to digital coaching and time with certified health coaches for real-time support and goal setting at no cost.

Livongo Health Inc (NASDAQ: LVGO) Stock Performance as of 06/29/2020:

1 day: Down about 0.03%

5 day: Up about 1.95%

1 month: Up about 19.7%

3 month: Up about 165%

6 month: Up about 198%

YTD: Up about 184%

1 year: Up about 88.2%

Since IPO: Up about 88.09%

Should You Buy Livongo Health Inc (NASDAQ: LVGO) Now?

Recently, KeyBanc analyst Donald Hooker raised his price target for Livongo Health’s stock to $85 from $52. And Hooker told clients that he sees the company as a “beat-and-raise story through 2020 and 2021.”

There are several reports featuring analyst ratings about whether to buy the stock now. In one report, 92% of analysts say buy, 8% say hold, and 0% say sell. In another report, I am seeing 15 analysts saying buy, 10 are neutral, and 3 say sell.

Disclosure: I own a small number of Livongo Health Inc (NASDAQ: LVGO) shares. I wrote this article myself and I do not have any business relationship with any company whose stock I write about. I am not a financial advisor and all articles are my opinion. You should do your own due diligence and consider talking to a financial professional before investing.