Avidity Partners Management LP Makes New Investment in DexCom, Inc. $DXCM

Key Points

• Avidity Partners Management purchased 90,000 DexCom shares worth approximately $5.65 million, making DXCM its 15th-largest holding. Institutional investors collectively own 97.75% of the company.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and average price target of $88.12; recent targets range from $82 to $96.
• DexCom reported quarterly EPS of $0.70 versus the $0.61 estimate and revenue of $1.31 billion, up 13.1% year over year. Shares opened at $83.45, near their one-year high of $87.00.

Avidity Partners Management LP purchased a new stake in DexCom, Inc. (NASDAQ:DXCM - Free Report) in the first quarter, according to its most recent Form 13F filing with the SEC. The institutional investor purchased 90,000 shares of the medical device company's stock, valued at approximately $5,652,000. DexCom comprises approximately 1.1% of Avidity Partners Management LP's portfolio, making the stock its 15th biggest position.

Several other large investors also recently made changes to their positions in the business. Norges Bank acquired a new stake in shares of DexCom during the 4th quarter valued at $483,356,000. AQR Capital Management LLC boosted its stake 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 acquiring an additional 2,658,158 shares in the last quarter. Employees Provident Fund Board acquired a new position in shares of DexCom in the 4th quarter worth $145,352,000. J. Stern & Co. LLP grew its holdings in shares of DexCom by 2,114.8% in the 4th quarter. J. Stern & Co. LLP now owns 1,601,973 shares of the medical device company's stock worth $106,323,000 after acquiring an additional 1,529,641 shares during the last quarter. Finally, SG Americas Securities LLC raised its position in shares of DexCom by 271.4% during the first quarter. SG Americas Securities LLC now owns 2,065,277 shares of the medical device company's stock worth $129,699,000 after purchasing an additional 1,509,219 shares during the period. Institutional investors own 97.75% of the company's stock.

Insiders Place Their Bets

In related news, Director Mark G. Foletta sold 4,000 shares of the stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $74.13, for a total transaction of $296,520.00. Following the sale, the director directly owned 52,852 shares in the company, valued at $3,917,918.76. This represents a 7.04% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Michael Jon Brown sold 1,700 shares of the firm's stock in a transaction on Monday, June 15th. The shares were sold at an average price of $75.55, for a total value of $128,435.00. Following the sale, the executive vice president directly owned 106,353 shares of the company's stock, valued at $8,034,969.15. This represents a 1.57% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 98,506 shares of company stock worth $7,205,258 in the last quarter. 0.28% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

Several equities research analysts have recently commented on the company. UBS Group set a $96.00 target price on DexCom and gave the company a "buy" rating in a report on Tuesday. Benchmark lifted their price target on DexCom from $77.00 to $82.00 and gave the stock a "buy" rating in a research note on Friday. BTIG Research reaffirmed a "buy" rating and set a $90.00 price objective (up from $80.00) on shares of DexCom in a research note on Friday. Truist Financial set a $93.00 target price on shares of DexCom and gave the stock a "buy" rating in a report on Friday. Finally, Wells Fargo & Company lifted their target price on shares of DexCom from $85.00 to $90.00 and gave the stock an "overweight" rating in a research report on Friday. Two investment analysts have rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $88.12.

DexCom Price Performance

Shares of DXCM stock opened at $83.45 on Friday. The stock's fifty day simple moving average is $73.14 and its 200 day simple moving average is $69.20. DexCom, Inc. has a one year low of $54.11 and a one year high of $87.00. The firm has a market cap of $32.20 billion, a price-to-earnings ratio of 32.98, a P/E/G ratio of 1.23 and a beta of 1.45. The company has a debt-to-equity ratio of 0.42, a current ratio of 1.95 and a quick ratio of 1.64.

DexCom (NASDAQ:DXCM - Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The medical device company reported $0.70 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.61 by $0.09. The firm had revenue of $1.31 billion during the quarter, compared to analyst estimates of $1.29 billion. DexCom had a return on equity of 35.34% and a net margin of 20.12%.The business's revenue for the quarter was up 13.1% compared to the same quarter last year. During the same period in the prior year, the company posted $0.48 earnings per share. On average, analysts expect that DexCom, Inc. will post 2.57 earnings per share for the current fiscal year.

More DexCom News

Here are the key news stories impacting DexCom this week:

• Positive Sentiment: Quarterly beat and higher outlook: DexCom reported adjusted earnings of $0.70 per share versus the $0.61 consensus, while revenue rose 13.1% year over year to $1.31 billion, exceeding estimates of $1.29 billion. Management raised its 2026 revenue outlook to approximately $5.18 billion-$5.25 billion, supported by strong global demand and broader product access. Reuters article
• Positive Sentiment: Product and market expansion: Growth is being supported by the G7 15 Day continuous glucose monitor, with DexCom targeting nearly 50% U.S. conversion by year-end, as well as expanded access and continued international growth. Margin improvement also contributed to a more constructive 2026 earnings narrative. Seeking Alpha article
• Positive Sentiment: Broad analyst support: Mizuho raised its price target to $95, Royal Bank of Canada and Wells Fargo lifted targets to $90, and UBS reaffirmed a Buy rating with a $96 target. Benchmark also reaffirmed Buy, although its $82 target is below the referenced trading level. Benzinga analyst updates
• Neutral Sentiment: Mixed valuation signals: JPMorgan raised its target substantially to $82 but retained a Neutral rating, indicating that some analysts view much of the improved outlook as already reflected in the stock.
• Negative Sentiment: Insider selling: Quiver Quantitative data shows 14 insider sales and no purchases during the past six months. This is a potential cautionary signal, although it has not outweighed the earnings-driven optimism. Quiver Quantitative analysis

DexCom Profile

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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