Bank of America Lowers DexCom (NASDAQ:DXCM) Price Target to $80.00

Key Points

• Bank of America cut its price target on DexCom to $80 from $100, while keeping a buy rating. The new target still implies about 24.46% upside from the stock’s current price.
• Other analysts also trimmed expectations, with several setting targets in the $75 to $81 range. Overall, DexCom carries a Moderate Buy consensus and an average price target of $82.21.
• DexCom reported better-than-expected Q1 results, posting EPS of $0.56 versus $0.47 expected and revenue of $1.19 billion versus $1.17 billion estimated. Revenue rose 15% year over year, even as insiders recently sold some shares.

DexCom (NASDAQ:DXCM - Get Free Report) had its target price reduced by investment analysts at Bank of America from $100.00 to $80.00 in a report issued on Monday,Benzinga reports. The firm currently has a "buy" rating on the medical device company's stock. Bank of America's price target points to a potential upside of 24.46% from the stock's current price.

Other equities research analysts have also issued reports about the stock. Citigroup reissued a "buy" rating and issued a $79.00 target price (down from $84.00) on shares of DexCom in a report on Monday, May 4th. TD Cowen reduced their price objective on shares of DexCom from $84.00 to $75.00 and set a "buy" rating on the stock in a research report on Friday, May 1st. Mizuho set a $75.00 price objective on shares of DexCom in a research report on Friday, May 1st. Raymond James Financial set a $81.00 price objective on shares of DexCom in a research report on Friday, May 1st. Finally, Evercore upgraded shares of DexCom from an "in-line" rating to an "outperform" rating and set a $90.00 price objective on the stock in a research report on Tuesday, March 24th. Three research analysts have rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, DexCom presently has an average rating of "Moderate Buy" and an average price target of $82.21.

DexCom Stock Performance

DexCom stock traded up $2.65 during midday trading on Monday, hitting $64.28. The stock had a trading volume of 5,059,238 shares, compared to its average volume of 5,045,384. The firm's fifty day moving average is $63.46 and its two-hundred day moving average is $65.85. The company has a market capitalization of $24.80 billion, a PE ratio of 27.43, a P/E/G ratio of 1.06 and a beta of 1.40. DexCom has a 52-week low of $54.11 and a 52-week high of $89.98. The company has a current ratio of 1.95, a quick ratio of 1.64 and a debt-to-equity ratio of 0.42.

DexCom (NASDAQ:DXCM - Get Free Report) last released its earnings results on Thursday, April 30th. The medical device company reported $0.56 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.47 by $0.09. The company had revenue of $1.19 billion during the quarter, compared to analyst estimates of $1.17 billion. DexCom had a net margin of 19.31% and a return on equity of 33.33%. The firm's quarterly revenue was up 15.0% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.32 EPS. On average, research analysts forecast that DexCom will post 2.56 EPS for the current year.

Insider Buying and Selling

In other news, EVP Michael Jon Brown sold 1,700 shares of the stock in a transaction that occurred on Wednesday, April 15th. The stock was sold at an average price of $63.04, for a total transaction of $107,168.00. Following the completion of the transaction, the executive vice president directly owned 111,204 shares in the company, valued at approximately $7,010,300.16. This represents a 1.51% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bridgette P. Heller sold 1,012 shares of the stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $60.01, for a total value of $60,730.12. Following the transaction, the director owned 25,007 shares of the company's stock, valued at $1,500,670.07. This represents a 3.89% 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. Insiders have sold a total of 4,412 shares of company stock valued at $278,143 over the last quarter. Corporate insiders own 0.28% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Trust Co. of Vermont boosted its position in shares of DexCom by 14.8% during the 4th quarter. Trust Co. of Vermont now owns 1,122 shares of the medical device company's stock valued at $74,000 after acquiring an additional 145 shares during the last quarter. CVA Family Office LLC boosted its position in shares of DexCom by 48.5% during the 4th quarter. CVA Family Office LLC now owns 450 shares of the medical device company's stock valued at $30,000 after acquiring an additional 147 shares during the last quarter. V Square Quantitative Management LLC boosted its position in shares of DexCom by 1.8% during the 1st quarter. V Square Quantitative Management LLC now owns 9,618 shares of the medical device company's stock valued at $604,000 after acquiring an additional 172 shares during the last quarter. Essex Financial Services Inc. boosted its position in shares of DexCom by 5.7% during the 1st quarter. Essex Financial Services Inc. now owns 3,256 shares of the medical device company's stock valued at $204,000 after acquiring an additional 175 shares during the last quarter. Finally, IFP Advisors Inc boosted its stake in DexCom by 24.7% during the third quarter. IFP Advisors Inc now owns 900 shares of the medical device company's stock worth $61,000 after buying an additional 178 shares during the period. 97.75% of the stock is currently owned by institutional investors.

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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