DexCom (NASDAQ:DXCM) Reaches New 1-Year High - What's Next?

Key Points

• DexCom shares reached a new 52-week high, trading as high as $88.01 and rising 4% from the prior close, supported by strong upward momentum.
• Analyst sentiment remains positive: the stock has a “Moderate Buy” consensus rating, with an average price target of $88.71 and several firms recently raising targets to $95–$96.
• DexCom exceeded quarterly expectations, reporting $0.70 in EPS versus $0.61 expected and $1.31 billion in revenue, up 13.1% year over year; however, insiders sold 102,506 shares worth about $7.5 million during the latest quarter.

DexCom, Inc. (NASDAQ:DXCM - Get Free Report) shares hit a new 52-week high on Monday . The company traded as high as $88.01 and last traded at $87.5840, with a volume of 1501585 shares changing hands. The stock had previously closed at $84.75.

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on DXCM shares. Piper Sandler restated an "overweight" rating and issued a $95.00 target price (up from $88.00) on shares of DexCom in a report on Friday, July 31st. Mizuho upped their price target on DexCom from $90.00 to $95.00 and gave the stock an "outperform" rating in a research note on Friday, July 31st. William Blair upgraded shares of DexCom to a "strong-buy" rating in a research report on Friday, May 15th. Argus boosted their target price on shares of DexCom from $86.00 to $96.00 and gave the stock a "buy" rating in a research report on Tuesday, August 4th. Finally, Benchmark upped their price target on DexCom from $77.00 to $82.00 and gave the stock a "buy" rating in a report on Friday, July 31st. Two analysts have rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $88.71.

DexCom Trading Up 4.0%

The company has a current ratio of 1.73, a quick ratio of 1.43 and a debt-to-equity ratio of 0.47. The business has a 50 day simple moving average of $74.42 and a two-hundred day simple moving average of $69.73. The stock has a market cap of $33.26 billion, a price-to-earnings ratio of 34.79, a price-to-earnings-growth ratio of 1.42 and a beta of 1.41.

DexCom (NASDAQ:DXCM - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The medical device company reported $0.70 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.61 by $0.09. DexCom had a net margin of 20.12% and a return on equity of 35.94%. The firm had revenue of $1.31 billion for the quarter, compared to analysts' expectations of $1.29 billion. During the same period in the prior year, the company posted $0.48 earnings per share. The firm's quarterly revenue was up 13.1% on a year-over-year basis. As a group, equities analysts anticipate that DexCom, Inc. will post 2.65 EPS for the current year.

Insider Transactions at DexCom

In other DexCom news, EVP Jon Coleman sold 4,911 shares of DexCom stock in a transaction that occurred on Thursday, June 4th. The stock was sold at an average price of $74.13, for a total value of $364,052.43. Following the completion of the transaction, the executive vice president directly owned 95,450 shares in the company, valued at $7,075,708.50. The trade was a 4.89% decrease in their ownership of the stock. 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. Also, insider Kevin R. Sayer sold 26,756 shares of the business's stock in a transaction that occurred on Monday, July 20th. The shares were sold at an average price of $76.32, for a total value of $2,042,017.92. Following the transaction, the insider owned 328,970 shares of the company's stock, valued at $25,106,990.40. This represents a 7.52% decrease in their position. 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 quarter, insiders sold 102,506 shares of company stock valued at $7,535,898. 0.28% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Reflection Asset Management acquired a new position in DexCom during the 4th quarter worth $25,000. Ascentis Independent Advisors bought a new position in shares of DexCom in the first quarter valued at $25,000. MCF Advisors LLC purchased a new stake in shares of DexCom during the fourth quarter valued at $32,000. Wellington Grp LLC lifted its stake in DexCom by 778.7% during the first quarter. Wellington Grp LLC now owns 536 shares of the medical device company's stock valued at $34,000 after buying an additional 475 shares in the last quarter. Finally, DV Equities LLC purchased a new stake in shares of DexCom in the 4th quarter valued at approximately $36,000. 97.75% of the stock is owned by institutional investors and hedge funds.

About DexCom

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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