DexCom (NASDAQ:DXCM) Stock Falls 4.5% – Time to Sell?

DexCom, Inc. (NASDAQ:DXCM) dropped 4.5% on Wednesday. The company traded as low as $82.51 and last traded at $81.9190. 1,303,473 shares changed hands during mid-day trading, a decline of 74% from the average daily volume of 4,940,348 shares. The stock had previously closed at $85.74.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on DXCM. UBS Group set a $96.00 price objective on shares of DexCom and gave the company a “buy” rating in a research report on Tuesday, July 28th. Weiss Ratings raised DexCom from a “hold (c)” rating to a “hold (c+)” rating in a research note on Tuesday, October 6th. Raymond James Financial restated a “strong-buy” rating and set a $94.00 price objective on shares of DexCom in a research report on Friday, July 31st. Piper Sandler restated an “overweight” rating and issued a $95.00 target price (up from $88.00) on shares of DexCom in a report on Friday, July 31st. Finally, Citigroup reissued a “buy” rating and issued a $88.00 target price (up from $84.00) on shares of DexCom in a research report on Friday, July 31st. Three equities research analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Buy” and an average target price of $92.43.

DexCom Stock Down 5.8%

The firm’s 50-day simple moving average is $87.50 and its 200 day simple moving average is $76.29. The company has a debt-to-equity ratio of 0.47, a quick ratio of 1.43 and a current ratio of 1.73. The company has a market cap of $30.48 billion, a P/E ratio of 31.85, a PEG ratio of 1.44 and a beta of 1.48.

DexCom (NASDAQ:DXCM) last released its earnings results 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. DexCom had a return on equity of 35.94% and a net margin of 20.12%. The business had revenue of $1.31 billion for the quarter, compared to analyst estimates of $1.29 billion. During the same quarter in the prior year, the company posted $0.48 earnings per share. DexCom’s revenue was up 13.1% on a year-over-year basis. On average, research analysts forecast that DexCom, Inc. will post 2.64 earnings per share for the current fiscal year.

Insider Transactions at DexCom

In other news, Director Nicholas Augustinos sold 6,539 shares of the firm’s stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $84.04, for a total value of $549,537.56. Following the sale, the director directly owned 29,293 shares in the company, valued at approximately $2,461,783.72. This trade represents a 18.25% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Michael Brown sold 1,700 shares of the firm’s stock in a transaction on Thursday, October 15th. The shares were sold at an average price of $85.48, for a total transaction of $145,316.00. Following the transaction, the executive vice president directly owned 98,185 shares of the company’s stock, valued at $8,392,853.80. The trade was a 1.70% decrease in their position. 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. In the last 90 days, insiders have sold 24,257 shares of company stock worth $2,049,173. 0.28% of the stock is owned by insiders.

Hedge Funds Weigh In On DexCom

Several institutional investors have recently added to or reduced their stakes in DXCM. Plato Investment Management Ltd purchased a new stake in shares of DexCom in the second quarter worth about $782,000. Aurora Investment Counsel bought a new stake in shares of DexCom during the second quarter valued at approximately $2,340,000. E Fund Management Co. Ltd. purchased a new stake in DexCom in the second quarter worth about $1,273,000. Silvant Capital Management LLC purchased a new position in shares of DexCom in the 2nd quarter valued at $5,359,000. Finally, Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in DexCom during the second quarter valued at approximately $89,940,000. Institutional investors own 97.75% of the company’s stock.

DexCom Company Profile

DexCom, Inc develops and commercializes continuous glucose monitoring (CGM) systems for people with diabetes. Its devices use a small wearable sensor to measure glucose levels in real time and transmit readings to compatible smartphones, receivers, smartwatches, and other connected devices, helping users monitor glucose trends and make informed decisions about their health.

The company’s product portfolio includes the Dexcom G7 and Dexcom G6 CGM systems, as well as Dexcom ONE and Dexcom ONE+ products offered in select markets.