DexCom, Inc. (DXCM) Downgraded to “Sell” at Zacks Investment Research
DexCom, Inc. (NASDAQ:DXCM) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Tuesday.
According to Zacks, “Over the past year, DexCom has underperformed the broader industry in terms of price. 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. On the brighter 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. In this regard, DexCom's recent collaboration with leading wearables brand – Fitbit, desreves a mention.”
A number of other research firms also recently issued reports on DXCM. Canaccord Genuity reiterated a “buy” rating and set a $90.00 price objective on shares of DexCom in a research note on Tuesday, August 22nd. ValuEngine upgraded shares of DexCom from a “sell” rating to a “hold” rating in a research note on Friday, September 1st. BidaskClub upgraded shares of DexCom from a “sell” rating to a “hold” rating in a research note on Saturday, August 19th. Barclays PLC assumed coverage on shares of DexCom in a research note on Friday, September 15th. They set an “equal weight” rating and a $76.00 price objective on the stock. Finally, Cowen and Company reiterated a “buy” rating and set a $90.00 price objective on shares of DexCom in a research note on Friday, July 14th. Two research analysts have rated the stock with a sell rating, eight have issued a hold rating and fourteen have given a buy rating to the company. DexCom currently has a consensus rating of “Buy” and a consensus target price of $72.19.
Shares of DexCom (DXCM) traded up 0.18% during mid-day trading on Tuesday, reaching $44.85. 1,125,683 shares of the company’s stock traded hands. The stock has a 50-day moving average price of $58.54 and a 200 day moving average price of $69.03. The firm’s market capitalization is $3.88 billion. DexCom has a 12-month low of $42.62 and a 12-month high of $88.80.
DexCom (NASDAQ:DXCM) last released its quarterly earnings data on Tuesday, August 1st. The medical device company reported ($0.16) earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of ($0.23) by $0.07. DexCom had a negative net margin of 10.27% and a negative return on equity of 27.90%. The firm had revenue of $170.60 million for the quarter, compared to the consensus estimate of $166.54 million. During the same period last year, the firm earned ($0.24) earnings per share. The company’s quarterly revenue was up 24.3% on a year-over-year basis. Analysts anticipate that DexCom will post ($0.80) EPS for the current fiscal year.
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In other DexCom news, EVP Richard Doubleday sold 1,635 shares of the firm’s stock in a transaction on Wednesday, August 23rd. The shares were sold at an average price of $75.26, for a total value of $123,050.10. Following the completion of the transaction, the executive vice president now owns 72,395 shares of the company’s stock, valued at $5,448,447.70. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, EVP Steven Robert Pacelli sold 1,450 shares of the firm’s stock in a transaction on Monday, September 25th. The stock was sold at an average price of $69.81, for a total transaction of $101,224.50. The disclosure for this sale can be found here. In the last ninety days, insiders sold 21,573 shares of company stock valued at $1,524,286. Corporate insiders own 1.70% of the company’s stock.
Several institutional investors have recently modified their holdings of DXCM. Advisor Group Inc. raised its holdings in shares of DexCom by 104.9% during the second quarter. Advisor Group Inc. now owns 1,635 shares of the medical device company’s stock worth $119,000 after purchasing an additional 837 shares during the last quarter. IFP Advisors Inc raised its holdings in shares of DexCom by 30.5% during the second quarter. IFP Advisors Inc now owns 2,431 shares of the medical device company’s stock worth $178,000 after purchasing an additional 568 shares during the last quarter. Independent Portfolio Consultants Inc. raised its holdings in shares of DexCom by 0.4% during the second quarter. Independent Portfolio Consultants Inc. now owns 2,499 shares of the medical device company’s stock worth $183,000 after purchasing an additional 9 shares during the last quarter. Janney Montgomery Scott LLC raised its holdings in shares of DexCom by 9.2% during the second quarter. Janney Montgomery Scott LLC now owns 2,959 shares of the medical device company’s stock worth $216,000 after purchasing an additional 250 shares during the last quarter. Finally, The Manufacturers Life Insurance Company raised its holdings in shares of DexCom by 12.2% during the second quarter. The Manufacturers Life Insurance Company now owns 3,254 shares of the medical device company’s stock worth $238,000 after purchasing an additional 354 shares during 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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