Zacks Investment Research lowered shares of DexCom, Inc. (NASDAQ:DXCM) from a hold rating to a sell rating in a research note released on Tuesday morning.

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.”

DXCM has been the topic of a number of other reports. BMO Capital Markets reissued an outperform rating and issued a $62.00 price objective (down from $90.00) on shares of DexCom in a research note on Thursday, September 28th. Raymond James Financial, Inc. cut shares of DexCom from an outperform rating to a mkt perform rating in a research note on Friday, September 29th. Canaccord Genuity reissued a buy rating and issued a $69.00 price objective (down from $90.00) on shares of DexCom in a research note on Thursday, September 28th. ValuEngine raised shares of DexCom from a sell rating to a hold rating in a research note on Friday, September 1st. Finally, Stephens reissued a buy rating and issued a $70.00 price objective (down from $83.00) on shares of DexCom in a research note on Thursday, September 28th. Two analysts have rated the stock with a sell rating, eight have issued a hold rating and fourteen have assigned a buy rating to the company. The company currently has a consensus rating of Buy and an average price target of $72.19.

DexCom (NASDAQ DXCM) traded down 0.44% during trading on Tuesday, hitting $44.78. 918,124 shares of the stock traded hands. DexCom has a 52-week low of $42.62 and a 52-week high of $88.80. The stock’s market cap is $3.88 billion. The company’s 50 day moving average price is $60.25 and its 200-day moving average price is $69.73.

DexCom (NASDAQ:DXCM) last issued its quarterly earnings data on Tuesday, August 1st. The medical device company reported ($0.16) EPS for the quarter, beating the Zacks’ consensus estimate of ($0.23) by $0.07. The firm had revenue of $170.60 million for the quarter, compared to analysts’ expectations 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 revenue was up 24.3% on a year-over-year basis. During the same period in the prior year, the company earned ($0.24) EPS. Equities research analysts forecast that DexCom will post ($0.80) earnings per share for the current fiscal year.

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In other news, EVP Steven Robert Pacelli sold 1,450 shares of the stock in a transaction dated Monday, July 24th. The shares were sold at an average price of $69.47, for a total transaction of $100,731.50. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Kevin R. Sayer sold 6,000 shares of the stock in a transaction dated Friday, August 11th. The stock was sold at an average price of $69.77, for a total transaction of $418,620.00. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 23,023 shares of company stock worth $1,625,018. Insiders own 1.70% of the company’s stock.

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Eqis Capital Management Inc. raised its holdings in DexCom by 38.6% in the third quarter. Eqis Capital Management Inc. now owns 13,749 shares of the medical device company’s stock valued at $673,000 after buying an additional 3,832 shares during the period. Verition Fund Management LLC purchased a new position in DexCom in the second quarter valued at approximately $528,000. Nomura Holdings Inc. purchased a new position in DexCom in the second quarter valued at approximately $262,000. DF Dent & Co. Inc. raised its holdings in DexCom by 46.2% in the second quarter. DF Dent & Co. Inc. now owns 14,094 shares of the medical device company’s stock valued at $1,031,000 after buying an additional 4,455 shares during the period. Finally, Tower Research Capital LLC TRC raised its holdings in DexCom by 302.0% in the second quarter. Tower Research Capital LLC TRC now owns 5,310 shares of the medical device company’s stock valued at $388,000 after buying an additional 3,989 shares during the period.

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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