DexCom (NASDAQ:DXCM) Earns Buy Rating from Analysts at Stifel Nicolaus

Key Points

• Analysts at Stifel Nicolaus have initiated coverage of DexCom (NASDAQ:DXCM) with a "buy" rating and a target price of $85.00, suggesting a 24.21% potential upside from its current price.
• The company recently reported earnings of $0.48 per share, exceeding expectations, and a revenue of $1.16 billion, marking a 15.2% year-over-year increase.
• Currently, DexCom holds a consensus rating of "Moderate Buy" among analysts, with fifteen issuing buy ratings and a consensus target price of $96.40.

Stock analysts at Stifel Nicolaus assumed coverage on shares of DexCom (NASDAQ:DXCM - Get Free Report) in a note issued to investors on Tuesday. The brokerage set a "buy" rating and a $85.00 price target on the medical device company's stock. Stifel Nicolaus' target price would indicate a potential upside of 24.21% from the stock's current price.

A number of other equities research analysts have also issued reports on the company. Robert W. Baird cut their price target on DexCom from $112.00 to $90.00 and set an "outperform" rating for the company in a research note on Friday, September 26th. Barclays increased their price target on DexCom from $93.00 to $98.00 and gave the stock an "equal weight" rating in a research note on Wednesday, July 30th. Weiss Ratings reiterated a "hold (c-)" rating on shares of DexCom in a research note on Wednesday, October 8th. Oppenheimer lowered DexCom from an "outperform" rating to a "market perform" rating in a research note on Monday, September 8th. Finally, Raymond James Financial increased their price target on DexCom from $99.00 to $102.00 and gave the stock a "strong-buy" rating in a research note on Thursday, July 31st. Three research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $96.40.

DexCom Stock Performance

DXCM opened at $68.43 on Tuesday. The company has a 50 day simple moving average of $73.16 and a two-hundred day simple moving average of $77.75. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.52 and a quick ratio of 1.35. The firm has a market cap of $26.84 billion, a P/E ratio of 47.52, a PEG ratio of 1.40 and a beta of 1.47. DexCom has a 1-year low of $57.52 and a 1-year high of $93.25.

DexCom (NASDAQ:DXCM - Get Free Report) last released its earnings results on Wednesday, July 30th. The medical device company reported $0.48 earnings per share for the quarter, beating analysts' consensus estimates of $0.45 by $0.03. The company had revenue of $1.16 billion for the quarter, compared to analysts' expectations of $1.13 billion. DexCom had a net margin of 13.29% and a return on equity of 30.41%. DexCom's revenue for the quarter was up 15.2% on a year-over-year basis. During the same quarter in the previous year, the company earned $0.43 EPS. DexCom has set its FY 2025 guidance at EPS. Equities analysts forecast that DexCom will post 2.03 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Mark G. Foletta sold 2,750 shares of DexCom stock in a transaction dated Friday, August 15th. The stock was sold at an average price of $81.06, for a total value of $222,915.00. Following the completion of the transaction, the director owned 51,121 shares in the company, valued at approximately $4,143,868.26. This trade represents a 5.10% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, EVP Michael Jon Brown sold 500 shares of DexCom stock in a transaction dated Friday, August 15th. The stock was sold at an average price of $80.29, for a total value of $40,145.00. Following the completion of the transaction, the executive vice president owned 94,102 shares of the company's stock, valued at approximately $7,555,449.58. This represents a 0.53% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 6,849 shares of company stock worth $564,733. Insiders own 0.32% of the company's stock.

Institutional Trading of DexCom

Institutional investors have recently added to or reduced their stakes in the company. Andra AP fonden bought a new stake in DexCom in the second quarter worth about $26,000. Twin Peaks Wealth Advisors LLC bought a new stake in DexCom in the second quarter worth about $26,000. Golden State Wealth Management LLC lifted its stake in DexCom by 211.2% in the first quarter. Golden State Wealth Management LLC now owns 389 shares of the medical device company's stock worth $27,000 after purchasing an additional 264 shares during the last quarter. Zions Bancorporation National Association UT bought a new stake in DexCom in the first quarter worth about $27,000. Finally, Financial Consulate Inc. bought a new stake in DexCom in the third quarter worth about $29,000. 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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