DexCom (NASDAQ:DXCM) Lowered to "Hold" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded DexCom from “Buy” to “Hold,” although the broader analyst consensus remains “Moderate Buy” with an average price target of $88.71.
• DexCom reported quarterly earnings of $0.70 per share, beating estimates of $0.61, while revenue rose 13.1% year over year to $1.31 billion.
• The stock opened at $90.82, near its 52-week high of $92.59, while insiders have sold 75,600 shares worth approximately $5.67 million over the past 90 days.

DexCom (NASDAQ:DXCM - Get Free Report) was downgraded by analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report released on Saturday.

Other research analysts have also issued reports about the company. Deutsche Bank Aktiengesellschaft assumed coverage on DexCom in a research report on Tuesday, June 23rd. They issued a "buy" rating and a $86.00 price objective on the stock. Raymond James Financial reiterated a "strong-buy" rating and issued a $94.00 target price on shares of DexCom in a research note on Friday, July 31st. Bank of America dropped their target price on DexCom from $100.00 to $80.00 and set a "buy" rating on the stock in a report on Monday, May 18th. Canaccord Genuity Group set a $90.00 price target on DexCom and gave the stock a "buy" rating in a research report on Monday, August 3rd. Finally, William Blair upgraded DexCom to a "strong-buy" rating in a report on Friday, May 15th. Two analysts have rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $88.71.

DexCom Price Performance

DexCom stock opened at $90.82 on Friday. DexCom has a 52-week low of $54.11 and a 52-week high of $92.59. The firm has a fifty day moving average of $79.21 and a 200-day moving average of $71.60. The firm has a market capitalization of $34.27 billion, a P/E ratio of 35.90, a PEG ratio of 1.51 and a beta of 1.41. The company has a quick ratio of 1.43, a current ratio of 1.73 and a debt-to-equity ratio of 0.47.

DexCom (NASDAQ:DXCM - Get Free Report) last posted its earnings results on Thursday, July 30th. The medical device company reported $0.70 earnings per share for the quarter, beating the consensus estimate of $0.61 by $0.09. DexCom had a net margin of 20.12% and a return on equity of 35.94%. The business had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.29 billion. During the same quarter in the previous year, the business posted $0.48 EPS. The business's quarterly revenue was up 13.1% on a year-over-year basis. As a group, analysts predict that DexCom will post 2.64 EPS for the current year.

Insiders Place Their Bets

In related news, EVP Sadie Stern sold 2,565 shares of the business's stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $88.37, for a total value of $226,669.05. Following the transaction, the executive vice president owned 126,043 shares in the company, valued at approximately $11,138,419.91. The trade was a 1.99% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jon Coleman sold 4,912 shares of the firm's stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $73.00, for a total value of $358,576.00. Following the sale, the executive vice president owned 100,361 shares of the company's stock, valued at approximately $7,326,353. This trade represents a 4.67% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 75,600 shares of company stock valued at $5,673,342. Insiders own 0.28% of the company's stock.

Institutional Trading of DexCom

A number of hedge funds have recently made changes to their positions in DXCM. California State Teachers Retirement System raised its holdings in DexCom by 6,567.7% in the second quarter. California State Teachers Retirement System now owns 39,176,552 shares of the medical device company's stock valued at $2,638,541,000 after acquiring an additional 38,588,991 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in DexCom by 15.6% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 11,261,876 shares of the medical device company's stock worth $758,487,000 after acquiring an additional 1,515,702 shares in the last quarter. Geode Capital Management LLC grew its holdings in DexCom by 0.4% during the 4th quarter. Geode Capital Management LLC now owns 11,006,183 shares of the medical device company's stock worth $727,842,000 after acquiring an additional 42,411 shares in the last quarter. Norges Bank acquired a new stake in shares of DexCom in the 4th quarter valued at about $483,356,000. Finally, Invesco Ltd. lifted its position in shares of DexCom by 14.8% during the fourth quarter. Invesco Ltd. now owns 5,315,367 shares of the medical device company's stock worth $352,781,000 after purchasing an additional 686,228 shares during the last quarter. Institutional investors and hedge funds own 97.75% of the company's stock.

About DexCom

DexCom, Inc is a medical device company that develops, manufactures and distributes continuous glucose monitoring (CGM) systems for people with diabetes. Its products are designed to provide near real-time glucose readings, trend information and alerts to help patients and clinicians manage insulin dosing and reduce hypoglycemia and hyperglycemia. The company's offerings combine wearable glucose sensors, wireless transmitters and software applications that deliver data to smartphones, dedicated receivers and cloud-based platforms for remote monitoring.

Founded in 1999 and headquartered in San Diego, California, DexCom has focused its business on advancing CGM technology and expanding clinical use beyond traditional insulin-dependent populations.

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