DexCom (NASDAQ:DXCM) Trading Up 6.2% - Should You Buy?

Key Points

• DexCom's shares rose by 6.2% during mid-day trading, reaching a high of $79.51, following positive analyst ratings and earnings performance.
• The company reported $0.48 earnings per share for the last quarter, exceeding analysts' expectations, and noted a 15.2% increase in revenue year-over-year.
• Three analysts rated the stock as a Strong Buy, with a consensus price target of $99.89, reflecting optimism about its market position and growth potential.

DexCom, Inc. (NASDAQ:DXCM - Get Free Report) shares shot up 6.2% on Wednesday . The stock traded as high as $79.51 and last traded at $78.91. 4,024,314 shares were traded during mid-day trading, an increase of 3% from the average session volume of 3,905,798 shares. The stock had previously closed at $74.30.

Wall Street Analysts Forecast Growth

DXCM has been the subject of a number of research analyst reports. Mizuho upped their price target on DexCom from $95.00 to $100.00 and gave the stock an "outperform" rating in a report on Wednesday, July 16th. Morgan Stanley upped their price target on DexCom from $82.00 to $89.00 and gave the stock an "equal weight" rating in a report on Tuesday, July 15th. Argus initiated coverage on DexCom in a report on Thursday, August 21st. They set a "buy" rating and a $100.00 price target for the company. Canaccord Genuity Group reiterated a "buy" rating and set a $106.00 price target on shares of DexCom in a report on Friday, August 1st. Finally, Oppenheimer lowered DexCom from an "outperform" rating to a "market perform" rating in a report on Monday. Three analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $99.89.

DexCom Stock Down 3.1%

The business has a 50-day simple moving average of $81.40 and a two-hundred day simple moving average of $78.93. The stock has a market capitalization of $30.59 billion, a P/E ratio of 54.17, a PEG ratio of 1.69 and a beta of 1.48. The company has a quick ratio of 1.35, a current ratio of 1.52 and a debt-to-equity ratio of 0.48.

DexCom (NASDAQ:DXCM - Get Free Report) last announced its quarterly 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. DexCom had a return on equity of 30.41% and a net margin of 13.29%.The firm had revenue of $1.16 billion for the quarter, compared to analysts' expectations of $1.13 billion. During the same period in the prior year, the business posted $0.43 earnings per share. The business's revenue was up 15.2% compared to the same quarter last year. DexCom has set its FY 2025 guidance at EPS. Equities research analysts forecast that DexCom, Inc. will post 2.03 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Nicholas Augustinos sold 3,672 shares of the stock in a transaction on Monday, June 16th. The stock was sold at an average price of $82.80, for a total transaction of $304,041.60. Following the sale, the director owned 33,411 shares in the company, valued at approximately $2,766,430.80. This represents a 9.90% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Michael Jon Brown sold 500 shares of the stock in a transaction on Friday, August 15th. The stock was sold at an average price of $80.29, for a total value of $40,145.00. Following the sale, the executive vice president owned 94,102 shares in the company, valued at $7,555,449.58. The trade was a 0.53% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 17,188 shares of company stock worth $1,423,411 over the last ninety days. Company insiders own 0.32% of the company's stock.

Hedge Funds Weigh In On DexCom

Hedge funds have recently added to or reduced their stakes in the company. Andra AP fonden bought a new position in DexCom in the second quarter valued at about $26,000. Twin Peaks Wealth Advisors LLC acquired a new position in DexCom in the second quarter valued at 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 valued at $27,000 after buying an additional 264 shares during the period. Zions Bancorporation National Association UT acquired a new position in DexCom in the first quarter valued at about $27,000. Finally, Heck Capital Advisors LLC acquired a new position in DexCom in the fourth quarter valued at about $38,000. 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.