DexCom (NASDAQ:DXCM) Trading Down 4.9% After Analyst Downgrade

Key Points

• DexCom's stock price fell 4.9% after Goldman Sachs downgraded its price target from $104 to $89, despite maintaining a buy rating.
• Insider transactions show that executives sold shares, with the Director and EVP reducing their stakes in the company amidst overall stock activity.
• Several institutional investors have significantly increased their holdings in DexCom, indicating strong institutional support for the company despite recent stock declines.

DexCom, Inc. (NASDAQ:DXCM - Get Free Report)'s stock price dropped 4.9% during trading on Wednesday after The Goldman Sachs Group lowered their price target on the stock from $104.00 to $89.00. The Goldman Sachs Group currently has a buy rating on the stock. DexCom traded as low as $63.94 and last traded at $63.97. Approximately 1,469,960 shares were traded during trading, a decline of 65% from the average daily volume of 4,167,058 shares. The stock had previously closed at $67.29.

DXCM has been the topic of a number of other research reports. Morgan Stanley lifted their price target on DexCom from $82.00 to $89.00 and gave the company an "equal weight" rating in a report on Tuesday, July 15th. Piper Sandler upped their target price on DexCom from $90.00 to $100.00 and gave the company an "overweight" rating in a report on Thursday, July 31st. Mizuho raised their price target on shares of DexCom from $95.00 to $100.00 and gave the stock an "outperform" rating in a report on Wednesday, July 16th. Argus assumed coverage on shares of DexCom in a research note on Thursday, August 21st. They issued a "buy" rating and a $100.00 price objective on the stock. Finally, UBS Group increased their target price on shares of DexCom from $105.00 to $106.00 and gave the stock a "buy" rating in a research report on Thursday, July 31st. Three analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and five have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $98.32.

Insider Activity

In other DexCom news, Director Mark G. Foletta sold 2,750 shares of the company's stock in a transaction dated Friday, August 15th. The shares were sold at an average price of $81.06, for a total transaction of $222,915.00. Following the completion of the sale, the director directly owned 51,121 shares in the company, valued at $4,143,868.26. This represents a 5.10% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Sadie Stern sold 1,466 shares of DexCom stock in a transaction that occurred on Thursday, September 4th. The stock was sold at an average price of $80.00, for a total value of $117,280.00. Following the completion of the transaction, the executive vice president directly owned 105,223 shares in the company, valued at approximately $8,417,840. This represents a 1.37% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 6,849 shares of company stock worth $564,733. Insiders own 0.32% of the company's stock.

Institutional Investors Weigh In On DexCom

Several institutional investors and hedge funds have recently bought and sold shares of the business. Brighton Jones LLC lifted its stake in DexCom by 257.7% during the fourth quarter. Brighton Jones LLC now owns 16,582 shares of the medical device company's stock worth $1,290,000 after purchasing an additional 11,946 shares during the period. GAMMA Investing LLC grew its position in DexCom by 5,951.7% in the first quarter. GAMMA Investing LLC now owns 499,746 shares of the medical device company's stock valued at $34,128,000 after acquiring an additional 491,488 shares during the period. Fifth Third Wealth Advisors LLC raised its stake in DexCom by 14.8% during the first quarter. Fifth Third Wealth Advisors LLC now owns 7,043 shares of the medical device company's stock worth $481,000 after acquiring an additional 908 shares in the last quarter. Rhumbline Advisers lifted its holdings in shares of DexCom by 4.3% during the first quarter. Rhumbline Advisers now owns 809,803 shares of the medical device company's stock valued at $55,301,000 after acquiring an additional 33,574 shares during the period. Finally, Czech National Bank boosted its stake in shares of DexCom by 6.0% in the 1st quarter. Czech National Bank now owns 89,737 shares of the medical device company's stock valued at $6,128,000 after purchasing an additional 5,048 shares in the last quarter. Institutional investors own 97.75% of the company's stock.

DexCom Trading Down 3.1%

The firm has a market cap of $25.58 billion, a P/E ratio of 45.28, a price-to-earnings-growth ratio of 1.39 and a beta of 1.48. The company has a current ratio of 1.52, a quick ratio of 1.35 and a debt-to-equity ratio of 0.48. The company's fifty day moving average price is $77.56 and its two-hundred day moving average price is $78.02.

DexCom (NASDAQ:DXCM - Get Free Report) last posted its quarterly earnings data on Wednesday, July 30th. The medical device company reported $0.48 earnings per share for the quarter, topping the consensus estimate of $0.45 by $0.03. The company had revenue of $1.16 billion during the quarter, compared to analyst estimates of $1.13 billion. DexCom had a net margin of 13.29% and a return on equity of 30.41%. The company's revenue was up 15.2% on a year-over-year basis. During the same quarter last year, the business posted $0.43 earnings per share. DexCom has set its FY 2025 guidance at EPS. As a group, sell-side analysts predict that DexCom, Inc. will post 2.03 EPS for the current fiscal year.

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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