DexCom (DXCM) Rating Lowered to Sell at Zacks Investment Research

DexCom (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. Cutthroat competition in the market for blood & glucose monitoring devices is a headwind. 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. Lower expected margins on transmitter sales is also a cause of concern. However, the company is well positioned in the MedTech space, courtesy of solid contribution from Sensor revenues, Transmitter revenues and Receiver revenues in the last few quarters. The glucose monitoring market represents significant commercial opportunity for DexCom. The company’s solid foothold in the international markets, especially Germany, broad spectrum of products and strategic collaborations, are promising.”

A number of other equities analysts have also commented on DXCM. TheStreet lowered shares of DexCom from a “c-” rating to a “d+” rating in a research report on Wednesday, October 25th. Northland Securities restated a “hold” rating and issued a $50.00 price target on shares of DexCom in a research report on Thursday, November 2nd. Barclays reduced their price target on shares of DexCom from $60.00 to $57.00 and set an “equal weight” rating on the stock in a research report on Thursday, November 2nd. Morgan Stanley reduced their price target on shares of DexCom from $72.00 to $52.00 and set a “neutral” rating on the stock in a research report on Friday, November 3rd. Finally, ValuEngine upgraded shares of DexCom from a “sell” rating to a “hold” rating in a research report on Monday, November 6th. Three investment analysts have rated the stock with a sell rating, six have assigned a hold rating and fourteen have given a buy rating to the stock. The stock currently has an average rating of “Hold” and a consensus price target of $67.44.

DexCom (DXCM) traded down $0.02 during midday trading on Tuesday, reaching $54.67. 550,520 shares of the company were exchanged, compared to its average volume of 1,384,724. The company has a market capitalization of $4,750.00, a PE ratio of -95.91 and a beta of 0.21. DexCom has a twelve month low of $42.62 and a twelve month high of $86.32. The company has a debt-to-equity ratio of 0.84, a quick ratio of 5.50 and a current ratio of 5.86.

In related news, Director Barbara Kahn sold 3,000 shares of the stock in a transaction that occurred on Monday, November 20th. The shares were sold at an average price of $54.58, for a total value of $163,740.00. Following the transaction, the director now directly owns 4,353 shares in the company, valued at $237,586.74. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Terrance H. Gregg sold 10,000 shares of the stock in a transaction that occurred on Tuesday, January 16th. The shares were sold at an average price of $56.86, for a total transaction of $568,600.00. Following the completion of the transaction, the insider now owns 484,559 shares in the company, valued at $27,552,024.74. The disclosure for this sale can be found here. Insiders have sold 48,140 shares of company stock worth $2,743,281 over the last quarter. 1.70% of the stock is owned by company insiders.

A number of hedge funds and other institutional investors have recently made changes to their positions in DXCM. Advisor Group Inc. lifted its holdings in 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 buying an additional 837 shares during the period. Virtu KCG Holdings LLC acquired a new position in DexCom in the second quarter valued at approximately $312,000. Dimensional Fund Advisors LP lifted its holdings in DexCom by 16.1% in the second quarter. Dimensional Fund Advisors LP now owns 126,674 shares of the medical device company’s stock valued at $9,267,000 after buying an additional 17,521 shares during the period. Balyasny Asset Management LLC acquired a new position in DexCom in the second quarter valued at approximately $249,000. Finally, State Street Corp lifted its holdings in DexCom by 2.5% in the second quarter. State Street Corp now owns 1,549,843 shares of the medical device company’s stock valued at $113,374,000 after buying an additional 37,581 shares during the period.

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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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