Primecap Management Co. CA Buys Shares of 192,000 DexCom, Inc. $DXCM

Key Points

• Primecap Management initiated a DexCom position by purchasing 192,000 shares worth approximately $12.9 million, representing about 0.05% of the company. Institutional investors collectively own 97.75% of DexCom’s outstanding stock.
• DexCom reported quarterly earnings of $0.70 per share, beating estimates by $0.09, while revenue rose 13.1% year over year to $1.31 billion. Shares opened at $88.96, near their 12-month high of $92.59.
• Analyst sentiment remains broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $88.71, although company insiders have sold 73,035 shares worth approximately $5.45 million over the past 90 days.

Primecap Management Co. CA purchased a new stake in DexCom, Inc. (NASDAQ:DXCM - Free Report) in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 192,000 shares of the medical device company's stock, valued at approximately $12,931,000. Primecap Management Co. CA owned approximately 0.05% of DexCom as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also made changes to their positions in the company. Geode Capital Management LLC boosted its position in shares of DexCom by 0.4% in the 4th quarter. Geode Capital Management LLC now owns 11,006,183 shares of the medical device company's stock worth $727,842,000 after buying an additional 42,411 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its holdings in DexCom by 6.9% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 7,999,057 shares of the medical device company's stock valued at $530,897,000 after acquiring an additional 516,526 shares in the last quarter. Norges Bank acquired a new position in DexCom during the fourth quarter worth about $483,356,000. Invesco Ltd. raised its position in DexCom by 14.8% during the fourth quarter. Invesco Ltd. now owns 5,315,367 shares of the medical device company's stock worth $352,781,000 after acquiring an additional 686,228 shares during the last quarter. Finally, CIBC Private Wealth Group LLC grew its position in shares of DexCom by 7.6% in the fourth quarter. CIBC Private Wealth Group LLC now owns 3,128,114 shares of the medical device company's stock valued at $207,613,000 after purchasing an additional 220,313 shares during the last quarter. Institutional investors and hedge funds own 97.75% of the company's stock.

DexCom Stock Performance

Shares of NASDAQ DXCM opened at $88.96 on Thursday. The company has a 50-day simple moving average of $78.50 and a 200-day simple moving average of $71.33. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.73 and a quick ratio of 1.43. The company has a market cap of $33.57 billion, a PE ratio of 35.16, a price-to-earnings-growth ratio of 1.50 and a beta of 1.41. DexCom, Inc. has a 12 month low of $54.11 and a 12 month high of $92.59.

DexCom (NASDAQ:DXCM - Get Free Report) last announced its quarterly earnings data on Thursday, July 30th. The medical device company reported $0.70 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.61 by $0.09. DexCom had a net margin of 20.12% and a return on equity of 35.94%. The business had revenue of $1.31 billion for the quarter, compared to the consensus estimate of $1.29 billion. During the same quarter in the prior year, the firm posted $0.48 earnings per share. The company's quarterly revenue was up 13.1% compared to the same quarter last year. On average, equities analysts anticipate that DexCom, Inc. will post 2.64 earnings per share for the current year.

Insiders Place Their Bets

In related news, EVP Michael Jon Brown sold 1,700 shares of the company's stock in a transaction on Monday, June 15th. The stock was sold at an average price of $75.55, for a total value of $128,435.00. Following the completion of the transaction, the executive vice president directly owned 106,353 shares in the company, valued at approximately $8,034,969.15. This represents a 1.57% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark G. Foletta sold 4,000 shares of the stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $74.13, for a total value of $296,520.00. Following the transaction, the director owned 52,852 shares in the company, valued at $3,917,918.76. This trade represents a 7.04% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 73,035 shares of company stock valued at $5,446,673. 0.28% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on DXCM. Citigroup reissued a "buy" rating and set a $88.00 price objective (up from $84.00) on shares of DexCom in a research note on Friday, July 31st. Piper Sandler reiterated an "overweight" rating and set a $95.00 target price (up from $88.00) on shares of DexCom in a report on Friday, July 31st. Wells Fargo & Company raised their price target on DexCom from $85.00 to $90.00 and gave the stock an "overweight" rating in a research report on Friday, July 31st. Royal Bank Of Canada raised their price target on DexCom from $85.00 to $90.00 and gave the stock an "outperform" rating in a research report on Friday, July 31st. Finally, Barclays reissued an "underweight" rating and issued a $64.00 price target (down from $67.00) on shares of DexCom in a report on Monday, May 18th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, DexCom has a consensus rating of "Moderate Buy" and a consensus price target of $88.71.

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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