DexCom Sees Unusually High Options Volume (NASDAQ:DXCM)

Key Points

• DexCom, Inc. experienced a significant surge in options trading, with 11,935 put options purchased, marking a 110% increase compared to the average daily volume of 5,676.
• Analysts' ratings for DexCom vary; Oppenheimer downgraded the stock to "market perform," while William Blair upgraded it to "strong-buy," with an average price target of $99.89.
• Insider selling has occurred recently, with notable sales including Director Mark G. Foletta offloading 2,750 shares, representing a 5.10% decrease in ownership.

DexCom, Inc. (NASDAQ:DXCM - Get Free Report) was the target of unusually large options trading on Friday. Stock traders acquired 11,935 put options on the stock. This represents an increase of approximately 110% compared to the typical volume of 5,676 put options.

DexCom Trading Down 0.4%

Shares of NASDAQ:DXCM traded down $0.27 during trading on Tuesday, reaching $69.24. The company's stock had a trading volume of 1,753,594 shares, compared to its average volume of 4,108,020. 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 has a 12 month low of $57.52 and a 12 month high of $93.25. The firm's 50 day simple moving average is $79.59 and its two-hundred day simple moving average is $78.19. The stock has a market capitalization of $27.15 billion, a PE ratio of 48.08, a price-to-earnings-growth ratio of 1.41 and a beta of 1.48.

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

Analyst Upgrades and Downgrades

A number of analysts have recently commented on the stock. Piper Sandler boosted their target price on shares of DexCom from $90.00 to $100.00 and gave the company an "overweight" rating in a report on Thursday, July 31st. Wall Street Zen downgraded DexCom from a "strong-buy" rating to a "buy" rating in a report on Sunday, August 10th. Raymond James Financial lifted their price target on DexCom from $99.00 to $102.00 and gave the stock a "strong-buy" rating in a research report on Thursday, July 31st. UBS Group raised their price objective on shares of DexCom from $105.00 to $106.00 and gave the company a "buy" rating in a research note on Thursday, July 31st. Finally, Morgan Stanley raised their price objective on shares of DexCom from $82.00 to $89.00 and gave the company an "equal weight" rating in a research note on Tuesday, July 15th. Three research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and five have issued a Hold rating to the company's stock. Based on data from MarketBeat, DexCom has a consensus rating of "Moderate Buy" and a consensus target price of $99.89.

Insiders Place Their Bets

In other DexCom news, EVP Michael Jon Brown sold 500 shares of the business's stock in a transaction on Friday, August 15th. The shares were sold at an average price of $80.29, for a total transaction of $40,145.00. Following the transaction, the executive vice president directly owned 94,102 shares of the company's stock, valued at approximately $7,555,449.58. The trade was a 0.53% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Sadie Stern sold 1,466 shares of the business's stock in a transaction on Monday, July 28th. The shares were sold at an average price of $88.99, for a total transaction of $130,459.34. Following the transaction, the executive vice president directly owned 106,689 shares in the company, valued at approximately $9,494,254.11. The trade was a 1.36% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 8,315 shares of company stock worth $689,431 in the last ninety days. Insiders own 0.32% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the stock. Horizon Investments LLC boosted its holdings in shares of DexCom by 2.2% in the first quarter. Horizon Investments LLC now owns 5,608 shares of the medical device company's stock valued at $383,000 after purchasing an additional 123 shares during the period. Wedbush Securities Inc. raised its position in DexCom by 1.2% during the 1st quarter. Wedbush Securities Inc. now owns 13,168 shares of the medical device company's stock valued at $899,000 after purchasing an additional 157 shares in the last quarter. Argonautica Private Wealth Management Inc. increased its stake in shares of DexCom by 3.2% during the first quarter. Argonautica Private Wealth Management Inc. now owns 5,958 shares of the medical device company's stock valued at $407,000 after buying an additional 182 shares during the period. Meiji Yasuda Asset Management Co Ltd. increased its stake in shares of DexCom by 3.2% during the first quarter. Meiji Yasuda Asset Management Co Ltd. now owns 6,019 shares of the medical device company's stock valued at $411,000 after buying an additional 187 shares during the period. Finally, Integrated Wealth Concepts LLC increased its stake in shares of DexCom by 6.3% during the first quarter. Integrated Wealth Concepts LLC now owns 3,329 shares of the medical device company's stock valued at $227,000 after buying an additional 196 shares during the period. Hedge funds and other institutional investors own 97.75% of the company's stock.

DexCom Company Profile

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.