December 4, 2023


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


The stock value of Progyny (NASDAQ: PGNY), a femtech organization that specializes in fertility and relatives building positive aspects solutions, has relished major progress since its October 2019 listing – exhibiting that the digital women’s health and fitness marketplace has developed into a formidable pressure in the wake of the Covid-19 pandemic. 

In spite of the latest declining costs sparked in no smaller element by a director offering $327,285.70 in inventory, Progyny was awarded an ordinary ‘buy’ rating by the 10 brokerages covering the inventory. 

Quite a few analysts have scrutinized PGNY shares in current months. Jefferies Economic Team commenced coverage on Progyny in a analysis position in December, issuing a ‘buy’ rating and a $60 focus on price. While Citigroup reduce their ‘buy’ score to a ‘neutral’ rating for the stock in November, the analysts also lifted their concentrate on price tag for the stock from $60 to $64

Nevertheless, Zacks Investments and TheStreet not too long ago minimize their scores for Progyny in 2022, indicating that it may perhaps be worthy of selling up. JPMorgan Chase & Co also lifted their value objective for the business from $65 to $79 and gave the business an ‘overweight’ score in an Oct investigation report. 


As PGNY’s inventory general performance historical past demonstrates, the inventory has climbed a lot more than 138% next its October 2019 floatation, but buyers are probably to be involved at how the foremost femtech firm has fared amidst the screening current market disorders of late 2021 – with inflation and clean Covid-19 fears paving the way for mass promote-offs. 


The past 6 months exhibits that the inventory has drifted some 43.26% absent from its all-time large worth of $63.43, which Progyny reached in September 2021. 

One more contributing issue to the stock’s recent downturn has been the a little under-par Q2 revenues in 2021. Although the company’s earnings have been far better than the consensus estimates above the identical interval, its inventory has drifted persistently due to the fact Q3 2021. 

Progyny also posted its advice for the comprehensive-12 months 2021 with revenues approximated to achieve $520 million and EPS set to be all around $.47 at the midpoint of their assortment. 

“Progyny’s fertility advantages resolution consists of differentiated gain approach style, personalised concierge-design and style participant aid providers and a selective community of fertility experts,” explained Maxim Manturov, head of financial commitment suggestions at Flexibility Finance Europe. “The enterprise also delivers Progyny Rx, a thorough pharmacy benefits resolution that presents its associates access to the medications they want for the duration of cure. In addition, it supplies businesses with reimbursement programmes for surrogacy and adoption.”

Progyny reported its Q2 benefits final month with revenues somewhat below and earnings better than the consensus estimates. The business supplied its assistance for the full-year 2021 with revenues approximated to be $520 million and EPS to be all over $.47, at the mid-issue of their variety. The mixed success led to a gradual decrease of in excess of 20% in PGNY stock in the to start with half of August. Nevertheless, the stock has found a sharp recovery around the previous month or so, led by an improved optimism for its company prospects.

The Increase and Increase of Femtech

The quantity of organizations in the United States that present fertility added benefits has expert sustained development in new years as the technological know-how powering femtech grows. Positive aspects programs can assortment from infertility prognosis and medicine to in vitro fertilization (IVF) and intrauterine insemination (IUI). Other, extra detailed strategies cover egg freezing, the procurement of donor eggs or embryos, and gestational surrogacy. In a single key move for the market, this sort of plans have developed to integrate users of the LGBTQ+ community, as very well as one dad and mom. 

The Personnel Gains Study 2020 by the Global Basis of Employee Benefits Designs (IFEBP) indicates that 24% of companies now protect IVF therapy, up from just 13% in 2016. The variety of companies masking egg harvesting also amplified from 2% to 10% more than the identical period of time. Also, fertility medication climbed threefold from 8% to 24%. 

Businesses are significantly keen to undertake fertility positive aspects as component of their diversity, fairness, and inclusion attempts. By giving protection for cure and medicine, they can not only develop far better ESG reporting and also guarantee that they can bring in and keep a lot more talent. 

This heightened curiosity and recognition of femtech can assistance to speed up development in a fledgling sector which is ripe for adoption. 

Though VC fascination hasn’t been mostly forthcoming in current several years, the pandemic-driven rise of electronic transformation and digital wellness has aided significant amounts of publicity for women’s well being applications. 

Progyny may well have confronted major downturns in share cost in modern months, but the outlook for the femtech industry as a whole need to be regarded as mostly favourable. 

As an early trailblazer in the market, Progyny should be regarded as a company that possesses a lot of upside likely. As the industry grows, we can assume to see more outperformance for this leading femtech organization.


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