Citigroup Issues Pessimistic Forecast for DexCom (NASDAQ:DXCM) Stock Price

Key Points

• Citigroup has reduced its price target for DexCom (NASDAQ:DXCM) stock from $105.00 to $85.00, indicating a potential upside of 28% from the previous close, while maintaining a "buy" rating.
• Other brokerages have also adjusted their ratings and price objectives, with the average target price for DexCom currently at $97.42, reflecting a "Moderate Buy" consensus among analysts.
• During its last earnings report, DexCom posted a revenue of $1.16 billion, exceeding expectations and showing a 15.2% increase year-over-year.

DexCom (NASDAQ:DXCM - Get Free Report) had its price target cut by equities researchers at Citigroup from $105.00 to $85.00 in a report issued on Tuesday,Benzinga reports. The brokerage currently has a "buy" rating on the medical device company's stock. Citigroup's price objective would suggest a potential upside of 28.00% from the company's previous close.

A number of other brokerages also recently issued reports on DXCM. Wall Street Zen downgraded shares of DexCom from a "strong-buy" rating to a "buy" rating in a report on Sunday, August 10th. Robert W. Baird lowered their price objective on DexCom from $112.00 to $90.00 and set an "outperform" rating for the company in a research report on Friday, September 26th. The Goldman Sachs Group reduced their target price on DexCom from $104.00 to $89.00 and set a "buy" rating on the stock in a research report on Wednesday, October 1st. Truist Financial initiated coverage on DexCom in a research note on Monday, June 16th. They issued a "buy" rating and a $102.00 price target on the stock. Finally, Argus assumed coverage on shares of DexCom in a report on Thursday, August 21st. They issued a "buy" rating and a $100.00 price objective on the stock. Three analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat, DexCom presently has an average rating of "Moderate Buy" and an average target price of $97.42.

DexCom Trading Up 0.1%

Shares of NASDAQ DXCM traded up $0.05 during trading on Tuesday, hitting $66.41. 1,458,862 shares of the company were exchanged, compared to its average volume of 4,204,104. The company has a fifty day moving average price of $75.85 and a 200-day moving average price of $77.88. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.35 and a current ratio of 1.52. The firm has a market capitalization of $26.04 billion, a PE ratio of 46.15, a P/E/G ratio of 1.41 and a beta of 1.47. DexCom has a 12-month low of $57.52 and a 12-month high of $93.25.

DexCom (NASDAQ:DXCM - Get Free Report) last announced its quarterly earnings data on Wednesday, July 30th. The medical device company reported $0.48 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.45 by $0.03. DexCom had a net margin of 13.29% and a return on equity of 30.41%. The firm had revenue of $1.16 billion during the quarter, compared to analyst estimates of $1.13 billion. During the same quarter in the prior year, the firm posted $0.43 earnings per share. DexCom's quarterly revenue was up 15.2% on a year-over-year basis. DexCom has set its FY 2025 guidance at EPS. As a group, equities research analysts expect that DexCom will post 2.03 EPS for the current year.

Insider Transactions at DexCom

In related news, EVP Michael Jon Brown sold 500 shares of the firm's stock in a transaction dated Friday, August 15th. The stock was sold at an average price of $80.29, for a total transaction of $40,145.00. Following the completion of the transaction, the executive vice president directly owned 94,102 shares in the company, valued at $7,555,449.58. This trade represents a 0.53% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Sadie Stern sold 1,466 shares of DexCom stock in a transaction dated Thursday, September 4th. The shares were sold at an average price of $80.00, for a total value of $117,280.00. Following the completion of the transaction, the executive vice president directly owned 105,223 shares of the company's stock, valued at approximately $8,417,840. This represents a 1.37% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 6,849 shares of company stock worth $564,733 over the last quarter. 0.32% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On DexCom

Several hedge funds and other institutional investors have recently added to or reduced their stakes in DXCM. Horizon Investments LLC lifted its position in DexCom by 2.2% during the 1st quarter. Horizon Investments LLC now owns 5,608 shares of the medical device company's stock worth $383,000 after acquiring an additional 123 shares during the period. Wedbush Securities Inc. lifted its holdings in shares of DexCom by 1.2% during the first quarter. Wedbush Securities Inc. now owns 13,168 shares of the medical device company's stock worth $899,000 after purchasing an additional 157 shares during the period. GAMMA Investing LLC lifted its holdings in shares of DexCom by 2.5% during the third quarter. GAMMA Investing LLC now owns 7,043 shares of the medical device company's stock worth $474,000 after purchasing an additional 169 shares during the period. Argonautica Private Wealth Management Inc. grew its position in DexCom by 3.2% in the 1st quarter. Argonautica Private Wealth Management Inc. now owns 5,958 shares of the medical device company's stock valued at $407,000 after buying an additional 182 shares during the last quarter. Finally, Meiji Yasuda Asset Management Co Ltd. increased its stake in DexCom by 3.2% in the 1st quarter. Meiji Yasuda Asset Management Co Ltd. now owns 6,019 shares of the medical device company's stock valued at $411,000 after buying an additional 187 shares during the period. Hedge funds and other institutional investors own 97.75% of the company's stock.

About DexCom

DexCom, Inc, a medical device company, focuses on the design, development, and commercialization of continuous glucose monitoring (CGM) systems in the United States and internationally. The company provides its systems for use by people with diabetes, as well as for use by healthcare providers. Its products include Dexcom G6 and Dexcom G7, integrated CGM systems for diabetes management; Dexcom Share, a remote monitoring system; Dexcom Real-Time API, which enables authorized third-party software developers to integrate real-time CGM data into their digital health apps and devices; and Dexcom ONE, that is designed to replace finger stick blood glucose testing for diabetes treatment decisions.

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