The Goldman Sachs Group Has Lowered Expectations for DexCom (NASDAQ:DXCM) Stock Price

Key Points

• The Goldman Sachs Group has reduced its target price for DexCom (NASDAQ:DXCM) from $104.00 to $89.00, while maintaining a "buy" rating, suggesting a potential upside of 36.80% from its current price.
• Several analysts have differing views on DexCom, with UBS Group raising its target price to $106.00 and three analysts giving it a "Strong Buy" rating, while others have assigned varying ratings from "buy" to "hold."
• DexCom recently reported quarterly earnings that exceeded expectations, with an EPS of $0.48 and revenue of $1.16 billion, marking a 15.2% year-over-year increase in revenue.

DexCom (NASDAQ:DXCM - Get Free Report) had its target price lowered by stock analysts at The Goldman Sachs Group from $104.00 to $89.00 in a research note issued to investors on Wednesday,Benzinga reports. The brokerage currently has a "buy" rating on the medical device company's stock. The Goldman Sachs Group's target price would indicate a potential upside of 36.80% from the stock's current price.

Several other analysts have also recently weighed in on DXCM. UBS Group raised their target price on shares of DexCom from $105.00 to $106.00 and gave the company a "buy" rating in a report on Thursday, July 31st. William Blair raised shares of DexCom to a "strong-buy" rating in a research note on Thursday, July 31st. Truist Financial started coverage on shares of DexCom in a research report on Monday, June 16th. They set a "buy" rating and a $102.00 target price on the stock. Barclays boosted their price objective on shares of DexCom from $93.00 to $98.00 and gave the stock an "equal weight" rating in a research report on Wednesday, July 30th. Finally, Canaccord Genuity Group reissued a "buy" rating and issued a $106.00 target price on shares of DexCom in a research note on Monday. Three equities research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and five have given a Hold rating to the company's stock. According to data from MarketBeat.com, DexCom presently has an average rating of "Moderate Buy" and a consensus price target of $98.32.

DexCom Price Performance

NASDAQ DXCM traded down $2.23 on Wednesday, hitting $65.06. The company had a trading volume of 4,412,289 shares, compared to its average volume of 4,186,456. DexCom has a 12-month low of $57.52 and a 12-month high of $93.25. The company has a market capitalization of $25.51 billion, a PE ratio of 44.84, a PEG ratio of 1.39 and a beta of 1.48. The company's fifty day moving average price is $77.56 and its 200-day moving average price is $78.02. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.52 and a quick ratio of 1.35.

DexCom (NASDAQ:DXCM - Get Free Report) last announced its quarterly earnings data on Wednesday, July 30th. The medical device company reported $0.48 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.45 by $0.03. The firm 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%. DexCom's quarterly revenue was up 15.2% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.43 earnings per share. DexCom has set its FY 2025 guidance at EPS. As a group, analysts predict that DexCom will post 2.03 earnings per share for the current year.

Insider Buying and Selling

In related news, EVP Sadie Stern sold 1,466 shares of DexCom stock in a transaction dated Thursday, September 4th. The shares were sold at an average price of $80.00, for a total transaction of $117,280.00. Following the sale, the executive vice president directly owned 105,223 shares in the company, valued at $8,417,840. The trade was a 1.37% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Kyle Malady sold 667 shares of DexCom stock in a transaction dated Friday, September 5th. The stock was sold at an average price of $80.86, for a total value of $53,933.62. Following the transaction, the director directly owned 22,667 shares in the company, valued at approximately $1,832,853.62. The trade was a 2.86% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 6,849 shares of company stock valued at $564,733. 0.32% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On DexCom

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Andra AP fonden acquired a new position in shares of DexCom in the second quarter valued at $26,000. Twin Peaks Wealth Advisors LLC acquired a new position in DexCom in the second quarter valued at about $26,000. Golden State Wealth Management LLC raised its position in shares of DexCom by 211.2% during the first quarter. Golden State Wealth Management LLC now owns 389 shares of the medical device company's stock worth $27,000 after purchasing an additional 264 shares during the period. Zions Bancorporation National Association UT acquired a new stake in shares of DexCom during the first quarter worth about $27,000. Finally, Anderson Financial Strategies LLC bought a new position in shares of DexCom during the first quarter worth about $37,000. 97.75% of the stock is currently owned by institutional investors and hedge funds.

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.

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