DexCom (NASDAQ:DXCM) Shares Gap Up – Still a Buy?

DexCom, Inc. (NASDAQ:DXCM) gapped up before the market opened on Friday . The stock had previously closed at $57.82, but opened at $59.91. DexCom shares last traded at $60.8840, with a volume of 1,069,340 shares trading hands.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on DXCM shares. Mizuho set a $75.00 price target on DexCom in a research report on Friday, May 1st. Wells Fargo & Company dropped their price target on DexCom from $93.00 to $85.00 and set an “overweight” rating on the stock in a research report on Friday, February 13th. Robert W. Baird set a $80.00 price target on DexCom in a research report on Friday, May 1st. Weiss Ratings upgraded DexCom from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Wednesday, March 4th. Finally, Canaccord Genuity Group set a $100.00 price target on DexCom and gave the company a “buy” rating in a research report on Friday, May 1st. Three investment analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $83.22.

DexCom Stock Up 6.8%

The stock has a 50 day simple moving average of $63.69 and a 200-day simple moving average of $65.92. The firm has a market cap of $23.83 billion, a PE ratio of 26.49, a PEG ratio of 1.01 and a beta of 1.40. The company has a debt-to-equity ratio of 0.42, a current ratio of 1.95 and a quick ratio of 1.64.

DexCom (NASDAQ:DXCM) last announced its quarterly earnings data on Thursday, April 30th. The medical device company reported $0.56 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.47 by $0.09. DexCom had a return on equity of 33.33% and a net margin of 19.31%.The business had revenue of $1.19 billion during the quarter, compared to analysts’ expectations of $1.17 billion. During the same quarter in the previous year, the business earned $0.32 earnings per share. The firm’s quarterly revenue was up 15.0% compared to the same quarter last year. Sell-side analysts predict that DexCom, Inc. will post 2.56 EPS for the current fiscal 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 Wednesday, April 15th. The stock was sold at an average price of $63.04, for a total transaction of $107,168.00. Following the completion of the sale, the executive vice president owned 111,204 shares in the company, valued at approximately $7,010,300.16. This represents a 1.51% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bridgette P. Heller sold 1,012 shares of the company’s stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $60.01, for a total value of $60,730.12. Following the sale, the director owned 25,007 shares of the company’s stock, valued at approximately $1,500,670.07. This trade represents a 3.89% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 4,412 shares of company stock valued at $278,143. 0.28% of the stock is owned by company insiders.

Institutional Trading of DexCom

Several hedge funds have recently bought and sold shares of DXCM. Reflection Asset Management bought a new stake in DexCom during the fourth quarter valued at about $25,000. Ascentis Independent Advisors bought a new stake in DexCom during the first quarter valued at about $25,000. CVA Family Office LLC grew its holdings in DexCom by 48.5% during the fourth quarter. CVA Family Office LLC now owns 450 shares of the medical device company’s stock valued at $30,000 after purchasing an additional 147 shares during the period. MCF Advisors LLC bought a new stake in DexCom during the fourth quarter valued at about $32,000. Finally, ORG Partners LLC boosted its stake in shares of DexCom by 124.3% in the fourth quarter. ORG Partners LLC now owns 507 shares of the medical device company’s stock worth $34,000 after acquiring an additional 281 shares during the period. Institutional investors own 97.75% of the company’s stock.

DexCom Company 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.