DexCom, Inc. (DXCM) Downgraded to Sell at Zacks Investment Research
Zacks Investment Research cut shares of DexCom, Inc. (NASDAQ:DXCM) from a hold rating to a sell rating in a research note issued to investors on Tuesday.
According to Zacks, “DexCom reported narrower-than-expected loss in the second quarter. We believe the company’s margins will continue to be under pressure in the coming quarters, owing to high product development costs and rising expenditures on research & development. Specifically, the company is expected to have lower margins on transmitter sales (in spite of the cost reduction initiatives). Additionally, cutthroat competition in the market for blood glucose monitoring devices is a major headwind. In the past one year, DexCom has underperformed the broader industry in terms of price. On the positive side, the glucose monitoring market represents significant commercial opportunity for DexCom. The company has also signed collaborative agreements with several companies, which should not only bring in cash, but also help expand its product portfolio.”
Several other brokerages also recently issued reports on DXCM. BidaskClub upgraded shares of DexCom from a hold rating to a buy rating in a research report on Wednesday, June 21st. Canaccord Genuity reiterated a buy rating and set a $90.00 price target on shares of DexCom in a research report on Tuesday, August 22nd. ValuEngine upgraded shares of DexCom from a sell rating to a hold rating in a research report on Friday, September 1st. Barclays PLC assumed coverage on shares of DexCom in a research report on Friday, September 15th. They set an equal weight rating and a $76.00 price target on the stock. Finally, Cowen and Company reiterated a buy rating and set a $90.00 price target on shares of DexCom in a research report on Friday, July 14th. Two research analysts have rated the stock with a sell rating, eight have issued a hold rating and fourteen have given a buy rating to the company’s stock. The stock currently has an average rating of Buy and an average price target of $72.19.
DexCom (NASDAQ:DXCM) last issued its quarterly earnings results on Tuesday, August 1st. The medical device company reported ($0.16) earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of ($0.23) by $0.07. The business had revenue of $170.60 million for the quarter, compared to the consensus estimate of $166.54 million. DexCom had a negative net margin of 10.27% and a negative return on equity of 27.90%. The firm’s quarterly revenue was up 24.3% on a year-over-year basis. During the same quarter in the prior year, the company earned ($0.24) EPS.
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In related news, EVP Steven Robert Pacelli sold 1,450 shares of the stock in a transaction that occurred on Monday, September 25th. The stock was sold at an average price of $69.81, for a total transaction of $101,224.50. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Andrew K. Balo sold 3,244 shares of the stock in a transaction that occurred on Thursday, August 10th. The stock was sold at an average price of $71.18, for a total value of $230,907.92. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 23,023 shares of company stock valued at $1,625,018. 1.70% of the stock is currently owned by company insiders.
A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. FMR LLC increased its stake in DexCom by 9.9% during the 2nd quarter. FMR LLC now owns 10,824,306 shares of the medical device company’s stock worth $791,799,000 after purchasing an additional 978,898 shares in the last quarter. Janus Henderson Group PLC increased its stake in DexCom by 101,699.8% during the 2nd quarter. Janus Henderson Group PLC now owns 6,828,731 shares of the medical device company’s stock worth $499,522,000 after purchasing an additional 6,822,023 shares in the last quarter. Vanguard Group Inc. increased its stake in DexCom by 3.4% during the 2nd quarter. Vanguard Group Inc. now owns 6,821,102 shares of the medical device company’s stock worth $498,963,000 after purchasing an additional 224,808 shares in the last quarter. BlackRock Inc. increased its stake in DexCom by 5.5% during the 2nd quarter. BlackRock Inc. now owns 4,391,404 shares of the medical device company’s stock worth $321,232,000 after purchasing an additional 230,542 shares in the last quarter. Finally, Janus Capital Management LLC increased its stake in DexCom by 12.2% during the 1st quarter. Janus Capital Management LLC now owns 4,001,971 shares of the medical device company’s stock worth $339,083,000 after purchasing an additional 436,162 shares in the last quarter.
DexCom Company Profile
Dexcom, Inc (Dexcom) is a medical device company. The Company is focused on the design, development and commercialization of continuous glucose monitoring (CGM) systems for ambulatory use by people with diabetes and for use by healthcare providers. The Company’s products consist of DexCom G4 PLATINUM and DexCom G5 Mobile.
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