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

Key Points

• Wall Street Zen downgraded DexCom from “strong-buy” to “buy,” though the stock still carries a broader consensus rating of “Moderate Buy” with a consensus target price of $83.50.
• Recent earnings topped expectations: DexCom reported $0.56 EPS on $1.19 billion in revenue, beating analyst estimates and showing 15% year-over-year revenue growth.
• Insider and institutional activity remains active, including an EVP sale of 1,700 shares under a pre-arranged trading plan, while institutional investors continue to own the vast majority of the stock.

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

DXCM has been the topic of several other research reports. Evercore upgraded shares of DexCom from an "in-line" rating to an "outperform" rating and set a $90.00 price target on the stock in a research report on Tuesday, March 24th. Weiss Ratings upgraded DexCom from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Wednesday, March 4th. TD Cowen decreased their price target on shares of DexCom from $84.00 to $75.00 and set a "buy" rating for the company in a research note on Friday, May 1st. Morgan Stanley reissued an "overweight" rating on shares of DexCom in a research note on Monday, January 12th. Finally, Mizuho set a $75.00 target price on shares of DexCom in a research report on Friday, May 1st. Two investment analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $83.50.

DexCom Price Performance

NASDAQ:DXCM opened at $60.61 on Friday. The business's 50-day simple moving average is $65.10 and its two-hundred day simple moving average is $66.29. The stock has a market cap of $23.39 billion, a PE ratio of 25.90, a P/E/G ratio of 1.04 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 quick ratio of 1.64, a current ratio of 1.95 and a debt-to-equity ratio of 0.42.

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

Insider Activity

In related news, EVP Michael Jon Brown sold 1,700 shares of the firm's stock in a transaction on Wednesday, April 15th. The stock was sold at an average price of $63.04, for a total value of $107,168.00. Following the completion of the transaction, the executive vice president owned 111,204 shares in the company, valued at $7,010,300.16. This trade represents a 1.51% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.28% of the stock is currently owned by insiders.

Institutional Trading of DexCom

Institutional investors and hedge funds have recently bought and sold shares of the business. Reflection Asset Management purchased a new position in DexCom during the fourth quarter valued at approximately $25,000. Ascentis Independent Advisors acquired a new position in DexCom during the first quarter worth $25,000. CVA Family Office LLC lifted its stake in DexCom by 48.5% in the 4th quarter. CVA Family Office LLC now owns 450 shares of the medical device company's stock valued at $30,000 after buying an additional 147 shares in the last quarter. MCF Advisors LLC purchased a new stake in shares of DexCom during the fourth quarter worth approximately $32,000. Finally, ORG Partners LLC raised its position in shares of DexCom by 124.3% in the fourth quarter. ORG Partners LLC now owns 507 shares of the medical device company's stock valued at $34,000 after buying an additional 281 shares during the last quarter. 97.75% of the stock is currently owned by institutional investors and hedge funds.

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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