DexCom, Inc. (NASDAQ:DXCM) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued 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.”
DXCM has been the subject of several 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 report on Thursday, September 28th. Raymond James Financial, Inc. cut DexCom from an “outperform” rating to a “mkt perform” rating in a research report 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 report on Thursday, September 28th. ValuEngine raised DexCom from a “sell” rating to a “hold” rating in a research report 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 report on Thursday, September 28th. Two analysts have rated the stock with a sell rating, eight have given a hold rating and fourteen have issued a buy rating to the company. The company currently has a consensus rating of “Buy” and an average price target of $72.19.
Shares of DexCom (DXCM) opened at 44.95 on Tuesday. The company’s market cap is $3.89 billion. DexCom has a 52 week low of $42.62 and a 52 week high of $88.80. The company has a 50 day moving average of $61.08 and a 200-day moving average of $69.91.
DexCom (NASDAQ:DXCM) last posted its quarterly earnings data on Tuesday, August 1st. The medical device company reported ($0.16) earnings per share for the quarter, beating the consensus estimate of ($0.23) by $0.07. DexCom had a negative return on equity of 27.90% and a negative net margin of 10.27%. The company had revenue of $170.60 million during the quarter, compared to analysts’ expectations of $166.54 million. During the same period in the prior year, the business earned ($0.24) earnings per share. DexCom’s revenue for the quarter was up 24.3% compared to the same quarter last year. On average, equities research analysts expect 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 firm’s stock in a transaction on Monday, July 24th. The stock was sold at an average price of $69.47, for a total value of $100,731.50. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Andrew K. Balo sold 3,244 shares of the firm’s stock in a transaction on Thursday, August 10th. The shares were 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. Insiders have sold 23,023 shares of company stock valued at $1,625,018 over the last quarter. Corporate insiders own 1.70% of the company’s stock.
Large investors have recently made changes to their positions in the company. Winslow Capital Management LLC acquired a new stake in shares of DexCom in the second quarter valued at $117,451,000. BNP Paribas Arbitrage SA increased its stake in shares of DexCom by 111.6% in the second quarter. BNP Paribas Arbitrage SA now owns 9,471 shares of the medical device company’s stock valued at $693,000 after buying an additional 4,995 shares in the last quarter. Clinton Group Inc. acquired a new stake in shares of DexCom in the second quarter valued at $639,000. State of Wisconsin Investment Board increased its stake in shares of DexCom by 29.0% in the second quarter. State of Wisconsin Investment Board now owns 68,511 shares of the medical device company’s stock valued at $5,012,000 after buying an additional 15,420 shares in the last quarter. Finally, Janus Henderson Group PLC increased its stake in shares of DexCom by 101,699.8% in the second quarter. Janus Henderson Group PLC now owns 6,828,731 shares of the medical device company’s stock valued at $499,522,000 after buying an additional 6,822,023 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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