DexCom (NASDAQ:DXCM) Trading Down 6.7% - Should You Sell?

Key Points

• DexCom's stock experienced a significant drop of 6.7%, closing at $70.68 after trading as low as $70.99, with a trading volume down 18% from its average.
• Analyst ratings for DexCom are primarily positive, with three analysts giving a Strong Buy rating and a consensus price target of $99.89.
• In its recent earnings report, DexCom achieved an EPS of $0.48, exceeding estimates, and reported a 15.2% year-over-year revenue growth with a total revenue of $1.16 billion.

DexCom, Inc. (NASDAQ:DXCM - Get Free Report) shares were down 6.7% on Friday . The stock traded as low as $70.99 and last traded at $70.68. Approximately 3,278,308 shares traded hands during mid-day trading, a decline of 18% from the average daily volume of 3,980,401 shares. The stock had previously closed at $75.78.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on DXCM shares. Wall Street Zen downgraded shares of DexCom from a "strong-buy" rating to a "buy" rating in a research report on Sunday, August 10th. Oppenheimer downgraded shares of DexCom from an "outperform" rating to a "market perform" rating in a research report on Monday, September 8th. The Goldman Sachs Group began coverage on shares of DexCom in a research report on Friday, May 30th. They set a "buy" rating and a $104.00 price objective for the company. Morgan Stanley boosted their price objective on shares of DexCom from $82.00 to $89.00 and gave the company an "equal weight" rating in a research report on Tuesday, July 15th. Finally, Piper Sandler boosted their price objective on shares of DexCom from $90.00 to $100.00 and gave the company an "overweight" rating in a research report on Thursday, July 31st. Three investment 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. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $99.89.

DexCom Trading Up 3.1%

The firm's 50-day simple moving average is $79.59 and its 200 day simple moving average is $78.19. The stock has a market cap of $27.26 billion, a P/E ratio of 39.68, a PEG ratio of 1.41 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.

DexCom (NASDAQ:DXCM - Get Free Report) last issued its quarterly earnings results on Wednesday, July 30th. The medical device company reported $0.48 earnings per share for the quarter, topping analysts' consensus estimates 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 business's revenue for the quarter was up 15.2% compared to the same quarter last year. During the same period in the prior year, the business posted $0.43 EPS. DexCom has set its FY 2025 guidance at EPS. As a group, equities research analysts anticipate that DexCom, Inc. will post 2.03 earnings per share for the current year.

Insider Activity at DexCom

In other news, Director Mark G. Foletta sold 2,750 shares of the company's stock in a transaction that occurred on Friday, August 15th. The shares were sold at an average price of $81.06, for a total value of $222,915.00. Following the completion of the sale, the director directly owned 51,121 shares of the company's stock, valued at approximately $4,143,868.26. This represents a 5.10% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Michael Jon Brown sold 500 shares of the company's stock in a transaction that occurred 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 completion of the sale, the executive vice president directly owned 94,102 shares of the company's stock, valued at approximately $7,555,449.58. This represents a 0.53% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 8,315 shares of company stock valued at $689,431. 0.32% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. grew its position in DexCom by 1.8% during the 2nd quarter. Vanguard Group Inc. now owns 48,322,405 shares of the medical device company's stock worth $4,218,063,000 after purchasing an additional 866,506 shares in the last quarter. Jennison Associates LLC grew its position in DexCom by 9.4% during the 2nd quarter. Jennison Associates LLC now owns 11,517,546 shares of the medical device company's stock worth $1,005,367,000 after purchasing an additional 994,300 shares in the last quarter. Geode Capital Management LLC grew its position in DexCom by 3.4% during the 2nd quarter. Geode Capital Management LLC now owns 10,766,356 shares of the medical device company's stock worth $936,100,000 after purchasing an additional 358,617 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in DexCom by 22.6% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 10,123,525 shares of the medical device company's stock worth $691,336,000 after purchasing an additional 1,868,241 shares in the last quarter. Finally, Nuveen LLC purchased a new position in DexCom during the 1st quarter worth approximately $554,893,000. Institutional investors and hedge funds 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.