Argus Investors Counsel Inc. Buys New Stake in DexCom, Inc. $DXCM

Key Points

• Argus Investors Counsel Inc. opened a new position in DexCom during the first quarter, buying 18,348 shares valued at about $1.15 million. The stake represents roughly 1.0% of the firm’s holdings.
• DexCom reported better-than-expected Q1 results, posting EPS of $0.56 versus the $0.47 estimate and revenue of $1.19 billion versus $1.17 billion expected. Revenue rose 15% year over year.
• Wall Street remains mostly constructive on the stock, with a consensus rating of Moderate Buy and an average price target of $84.88. However, some firms have trimmed targets or maintained cautious ratings, and insiders have been net sellers recently.

Argus Investors Counsel Inc. acquired a new stake in DexCom, Inc. (NASDAQ:DXCM - Free Report) in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund acquired 18,348 shares of the medical device company's stock, valued at approximately $1,152,000. DexCom makes up about 1.0% of Argus Investors Counsel Inc.'s holdings, making the stock its 28th biggest position.

Several other hedge funds have also modified their holdings of DXCM. Norges Bank acquired a new stake in DexCom in the fourth quarter valued at approximately $483,356,000. AQR Capital Management LLC lifted its position in shares of DexCom by 597.8% during the 4th quarter. AQR Capital Management LLC now owns 3,102,789 shares of the medical device company's stock worth $205,932,000 after purchasing an additional 2,658,158 shares during the last quarter. Holocene Advisors LP purchased a new stake in shares of DexCom during the 3rd quarter worth $163,964,000. CIBC Private Wealth Group LLC grew its stake in shares of DexCom by 374.3% during the third quarter. CIBC Private Wealth Group LLC now owns 2,907,801 shares of the medical device company's stock worth $195,666,000 after purchasing an additional 2,294,709 shares in the last quarter. Finally, Employees Provident Fund Board purchased a new stake in DexCom during the fourth quarter worth approximately $145,352,000. 97.75% of the stock is currently owned by institutional investors and hedge funds.

DexCom Stock Performance

Shares of DXCM stock opened at $71.25 on Monday. DexCom, Inc. has a 12-month low of $54.11 and a 12-month high of $89.98. The company has a current ratio of 1.95, a quick ratio of 1.64 and a debt-to-equity ratio of 0.42. The stock has a 50 day simple moving average of $68.31 and a 200-day simple moving average of $68.19. The company has a market cap of $27.49 billion, a price-to-earnings ratio of 30.45, a price-to-earnings-growth ratio of 1.17 and a beta of 1.45.

DexCom (NASDAQ:DXCM - Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The medical device company reported $0.56 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.47 by $0.09. The company had revenue of $1.19 billion during the quarter, compared to the consensus estimate of $1.17 billion. DexCom had a net margin of 19.31% and a return on equity of 33.33%. The company's revenue for the quarter was up 15.0% on a year-over-year basis. During the same period last year, the firm earned $0.32 EPS. On average, equities analysts forecast that DexCom, Inc. will post 2.57 EPS for the current year.

Insider Buying and Selling at DexCom

In other DexCom news, EVP Jon Coleman sold 4,912 shares of the firm's stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $73.00, for a total transaction of $358,576.00. Following the completion of the transaction, the executive vice president directly owned 100,361 shares in the company, valued at approximately $7,326,353. This trade represents a 4.67% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bridgette P. Heller sold 1,012 shares of DexCom stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $60.01, for a total transaction of $60,730.12. Following the transaction, the director owned 25,007 shares of the company's stock, valued at approximately $1,500,670.07. The trade was a 3.89% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 46,694 shares of company stock worth $3,343,977. Insiders own 0.28% of the company's stock.

Analysts Set New Price Targets

A number of research firms have weighed in on DXCM. Deutsche Bank Aktiengesellschaft began coverage on shares of DexCom in a report on Tuesday, June 23rd. They set a "buy" rating and a $86.00 price objective on the stock. Wall Street Zen cut DexCom from a "strong-buy" rating to a "buy" rating in a research report on Sunday, May 10th. Barclays reiterated an "underweight" rating and issued a $64.00 price objective (down from $67.00) on shares of DexCom in a research note on Monday, May 18th. Bank of America lowered their target price on shares of DexCom from $100.00 to $80.00 and set a "buy" rating on the stock in a research report on Monday, May 18th. Finally, Stifel Nicolaus set a $90.00 target price on shares of DexCom and gave the company a "buy" rating in a report on Friday, June 5th. Two analysts have rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $84.88.

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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