DexCom, Inc. (NASDAQ:DXCM) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released 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.”

A number of other equities research analysts have also recently commented on the stock. Wedbush reiterated a “buy” rating and issued a $76.00 target price on shares of DexCom in a research report on Wednesday, October 4th. Leerink Swann reiterated a “buy” rating and issued a $57.00 target price (down from $85.00) on shares of DexCom in a research report on Friday, September 29th. Raymond James Financial, Inc. cut shares of DexCom from an “outperform” rating to a “mkt perform” rating in a research report on Friday, September 29th. ValuEngine cut shares of DexCom from a “hold” rating to a “sell” rating in a research report on Thursday, September 28th. Finally, Piper Jaffray Companies reiterated a “buy” rating and issued a $87.00 target price on shares of DexCom in a research report on Thursday, September 28th. Two equities research 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 target price of $72.19.

Shares of DexCom (NASDAQ DXCM) traded down 0.58% during trading on Tuesday, hitting $44.71. 1,159,001 shares of the company’s stock were exchanged. The company’s market cap is $3.87 billion. The company has a 50-day moving average of $63.34 and a 200-day moving average of $70.67. DexCom has a 12-month low of $42.62 and a 12-month high of $88.80.

DexCom (NASDAQ:DXCM) last issued its earnings results 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 business had revenue of $170.60 million during 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 company’s quarterly revenue was up 24.3% compared to the same quarter last year. During the same period in the prior year, the business earned ($0.24) earnings per share. On average, equities analysts expect that DexCom will post ($0.80) earnings per share for the current fiscal year.

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In other news, CEO Kevin R. Sayer sold 6,000 shares of the firm’s stock in a transaction that occurred on Wednesday, September 20th. The shares were sold at an average price of $69.34, for a total value of $416,040.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Andrew K. Balo sold 3,244 shares of the firm’s stock in a transaction that occurred on Thursday, August 10th. The shares were sold at an average price of $71.18, for a total transaction of $230,907.92. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 23,023 shares of company stock valued at $1,625,018. 1.70% of the stock is currently owned by insiders.

Several hedge funds and other institutional investors have recently bought and sold shares of DXCM. Advisor Group Inc. boosted its stake in shares of DexCom by 104.9% in the second quarter. Advisor Group Inc. now owns 1,635 shares of the medical device company’s stock valued at $119,000 after purchasing an additional 837 shares during the period. Edmond DE Rothschild Holding S.A. purchased a new position in shares of DexCom in the first quarter valued at approximately $164,000. IFP Advisors Inc boosted its stake in shares of DexCom by 30.5% in the second quarter. IFP Advisors Inc now owns 2,431 shares of the medical device company’s stock valued at $178,000 after purchasing an additional 568 shares during the period. Independent Portfolio Consultants Inc. boosted its stake in shares of DexCom by 0.4% in the second quarter. Independent Portfolio Consultants Inc. now owns 2,499 shares of the medical device company’s stock valued at $183,000 after purchasing an additional 9 shares during the period. Finally, Brighton Jones LLC purchased a new position in shares of DexCom in the first quarter valued at approximately $204,000.

About DexCom

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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