DexCom (NASDAQ:DXCM) Rating Increased to Buy at Wall Street Zen

Key Points

• Wall Street Zen upgraded DexCom from “hold” to “buy.” The broader analyst consensus is “Moderate Buy,” with an average price target of $88.71.
• DexCom exceeded quarterly expectations, reporting EPS of $0.70 versus the $0.61 consensus and revenue of $1.31 billion, up 13.1% year over year.
• Institutional investors own 97.75% of DexCom, while insiders sold 65,777 shares worth approximately $4.95 million over the past 90 days.

DexCom (NASDAQ:DXCM - Get Free Report) was upgraded by investment analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a report issued on Sunday, Wall Street Zen reports.

A number of other equities analysts also recently issued reports on the company. TD Cowen reissued a "buy" rating on shares of DexCom in a research report on Friday, July 31st. UBS Group set a $96.00 price objective on DexCom and gave the company a "buy" rating in a report on Tuesday, July 28th. Canaccord Genuity Group set a $90.00 price objective on shares of DexCom and gave the stock a "buy" rating in a research note on Monday, August 3rd. Piper Sandler reiterated an "overweight" rating and set a $95.00 target price (up from $88.00) on shares of DexCom in a report on Friday, July 31st. Finally, Bank of America cut their target price on shares of DexCom from $100.00 to $80.00 and set a "buy" rating on the stock in a research report on Monday, May 18th. Two research analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $88.71.

DexCom Stock Performance

DexCom stock opened at $87.90 on Friday. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.43 and a current ratio of 1.73. The company has a market capitalization of $33.17 billion, a PE ratio of 34.74, a P/E/G ratio of 1.47 and a beta of 1.42. The company has a 50 day moving average price of $81.24 and a 200-day moving average price of $72.35. DexCom has a fifty-two week low of $54.11 and a fifty-two week high of $92.59.

DexCom (NASDAQ:DXCM - Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The medical device company reported $0.70 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.61 by $0.09. The company had revenue of $1.31 billion for the quarter, compared to analysts' expectations of $1.29 billion. DexCom had a return on equity of 35.94% and a net margin of 20.12%.DexCom's revenue was up 13.1% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.48 earnings per share. As a group, equities analysts forecast that DexCom will post 2.64 earnings per share for the current year.

Insider Activity

In related news, EVP Michael Brown sold 1,700 shares of the company's stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $75.55, for a total transaction of $128,435.00. Following the transaction, the executive vice president directly owned 106,353 shares of the company's stock, valued at $8,034,969.15. This represents a 1.57% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark G. Foletta sold 4,000 shares of the stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $74.13, for a total value of $296,520.00. Following the completion of the sale, the director owned 52,852 shares of the company's stock, valued at approximately $3,917,918.76. This trade represents a 7.04% decrease in their ownership of the stock. 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 65,777 shares of company stock worth $4,950,714. Insiders own 0.28% of the company's stock.

Institutional Investors Weigh In On DexCom

A number of large investors have recently modified their holdings of DXCM. California State Teachers Retirement System raised its position in shares of DexCom by 6,567.7% in the 2nd 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 purchasing an additional 38,588,991 shares during the last quarter. Norges Bank purchased a new stake in DexCom during the 4th quarter worth approximately $483,356,000. AQR Capital Management LLC grew its position in DexCom by 597.8% during the 4th quarter. AQR Capital Management LLC now owns 3,102,789 shares of the medical device company's stock worth $205,932,000 after purchasing an additional 2,658,158 shares during the last quarter. Legal & General Group Plc acquired a new position in DexCom during the 2nd quarter valued at approximately $173,237,000. Finally, Deutsche Bank AG acquired a new position in DexCom during the 2nd quarter valued at approximately $164,035,000. Hedge funds and other institutional investors own 97.75% of the company's stock.

DexCom Company Profile

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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