DexCom (NASDAQ:DXCM) Shares Gap Down - Here's Why

Key Points

• DexCom, Inc. (NASDAQ: DXCM) saw a significant drop in stock price, opening at $72.93 after previously closing at $76.44, indicating investor concern.
• Research firms have provided mixed ratings for DexCom, with new price targets ranging from $100 to $106, but several analysts have downgraded their ratings recently.
• The company reported a 15.2% year-over-year revenue increase in its last quarterly earnings, with earnings per share beating analyst estimates.

Shares of DexCom, Inc. (NASDAQ:DXCM - Get Free Report) gapped down prior to trading on Thursday . The stock had previously closed at $76.44, but opened at $72.93. DexCom shares last traded at $73.52, with a volume of 2,308,514 shares changing hands.

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on DXCM. Raymond James Financial upped their target price on DexCom from $99.00 to $102.00 and gave the company a "strong-buy" rating in a report on Thursday, July 31st. Mizuho upped their target price on DexCom from $95.00 to $100.00 and gave the company an "outperform" rating in a report on Wednesday, July 16th. Argus began coverage on DexCom in a report on Thursday, August 21st. They issued a "buy" rating and a $100.00 target price for the company. Canaccord Genuity Group reaffirmed a "buy" rating and issued a $106.00 target price on shares of DexCom in a report on Friday, August 1st. Finally, The Goldman Sachs Group initiated coverage on DexCom in a report on Friday, May 30th. They issued a "buy" rating and a $104.00 target price for the company. Three research analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and five have given a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $99.89.

DexCom Trading Down 11.0%

The stock has a market cap of $26.45 billion, a P/E ratio of 46.84, a PEG ratio of 1.41 and a beta of 1.48. The firm's fifty day moving average price is $79.90 and its two-hundred day moving average price is $78.25. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.52 and a quick ratio of 1.35.

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

Insider Activity at DexCom

In other DexCom news, EVP Sadie Stern sold 1,466 shares of DexCom stock in a transaction that occurred on 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 sale, the executive vice president owned 105,223 shares of the company's stock, valued at approximately $8,417,840. The trade was a 1.37% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Michael Jon Brown sold 500 shares of DexCom stock in a transaction on Friday, August 15th. The stock was sold at an average price of $80.29, for a total transaction of $40,145.00. Following the transaction, the executive vice president owned 94,102 shares in the company, valued at $7,555,449.58. This represents a 0.53% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 8,315 shares of company stock valued at $689,431. 0.32% of the stock is currently owned by corporate insiders.

Institutional Trading of DexCom

Hedge funds have recently bought and sold shares of the stock. Andra AP fonden purchased a new stake in shares of DexCom during the 2nd quarter valued at about $26,000. Twin Peaks Wealth Advisors LLC purchased a new stake in shares of DexCom during the 2nd quarter valued at about $26,000. Golden State Wealth Management LLC raised its position in shares of DexCom by 211.2% during the 1st quarter. Golden State Wealth Management LLC now owns 389 shares of the medical device company's stock valued at $27,000 after buying an additional 264 shares in the last quarter. Zions Bancorporation National Association UT purchased a new stake in shares of DexCom during the 1st quarter valued at about $27,000. Finally, Anderson Financial Strategies LLC purchased a new stake in shares of DexCom during the 1st quarter valued at about $37,000. Hedge funds and other institutional investors own 97.75% of the company's stock.

DexCom Company Profile

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.