DexCom (NASDAQ:DXCM) Raised to Buy at Zacks Investment Research

DexCom (NASDAQ:DXCM) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Friday, Zacks.com reports. The firm presently has a $154.00 price target on the medical device company’s stock. Zacks Investment Research‘s price target indicates a potential upside of 3.03% from the company’s current price.

According to Zacks, “Shares of the company have outperformed the industry in a year's time. Strong contributions from the Sensor and Transmitter segments have been key catalysts. Further, solid guidance instills optimism in the stock. The glucose monitoring market presents significant commercial opportunity for DexCom. Opportunities in alternative markets such as the non-intensive diabetes management space, hospital, gestational, pre-diabetes and obesity are likely to provide DexCom a competitive edge in the MedTech space. Meanwhile, cutthroat competition in the market for blood & glucose monitoring devices remains a headwind. With respect to quarterly results, DexCom exited the second quarter on a strong note, wherein both the top and bottom line beat the Zacks Consensus Estimate.”

Other analysts also recently issued research reports about the stock. BTIG Research reissued a “hold” rating on shares of DexCom in a research report on Thursday, August 1st. BMO Capital Markets raised their price target on shares of DexCom from $180.00 to $190.00 and gave the stock an “outperform” rating in a research report on Tuesday, September 3rd. Piper Jaffray Companies set a $182.00 price objective on DexCom and gave the stock a “buy” rating in a research note on Monday, September 23rd. BidaskClub cut DexCom from a “buy” rating to a “hold” rating in a research note on Thursday. Finally, TheStreet upgraded DexCom from a “d+” rating to a “c” rating in a research note on Friday, June 28th. Six analysts have rated the stock with a hold rating and thirteen have issued a buy rating to the company’s stock. The company presently has a consensus rating of “Buy” and an average target price of $171.94.

Shares of DXCM stock traded up $2.50 during mid-day trading on Friday, reaching $149.47. 7,467 shares of the company were exchanged, compared to its average volume of 670,984. DexCom has a fifty-two week low of $105.05 and a fifty-two week high of $178.45. The company has a debt-to-equity ratio of 1.56, a quick ratio of 5.64 and a current ratio of 6.05. The company has a market capitalization of $13.36 billion, a P/E ratio of 498.33 and a beta of 0.66. The business’s 50 day simple moving average is $154.18 and its 200 day simple moving average is $143.10.

DexCom (NASDAQ:DXCM) last released its quarterly earnings results on Wednesday, July 31st. The medical device company reported $0.08 earnings per share for the quarter, topping analysts’ consensus estimates of $0.01 by $0.07. DexCom had a negative net margin of 13.96% and a positive return on equity of 10.41%. The business had revenue of $336.40 million during the quarter, compared to the consensus estimate of $304.40 million. During the same quarter last year, the company earned ($0.10) earnings per share. The business’s quarterly revenue was up 38.7% compared to the same quarter last year. On average, analysts forecast that DexCom will post 0.94 EPS for the current year.

In other DexCom news, Director Steven R. Altman sold 2,500 shares of the firm’s stock in a transaction on Tuesday, October 1st. The stock was sold at an average price of $149.17, for a total value of $372,925.00. Following the sale, the director now directly owns 2,676 shares in the company, valued at $399,178.92. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Kevin R. Sayer sold 10,000 shares of the firm’s stock in a transaction on Tuesday, October 1st. The shares were sold at an average price of $149.60, for a total value of $1,496,000.00. The disclosure for this sale can be found here. Insiders sold 92,481 shares of company stock worth $14,375,038 over the last quarter. 1.80% of the stock is currently owned by company insiders.

Several institutional investors and hedge funds have recently modified their holdings of DXCM. Price T Rowe Associates Inc. MD increased its holdings in shares of DexCom by 359.4% during the second quarter. Price T Rowe Associates Inc. MD now owns 5,456,834 shares of the medical device company’s stock valued at $817,652,000 after purchasing an additional 4,268,926 shares during the period. Nuveen Asset Management LLC grew its holdings in DexCom by 1,781.3% during the second quarter. Nuveen Asset Management LLC now owns 1,107,735 shares of the medical device company’s stock worth $165,983,000 after acquiring an additional 1,048,855 shares during the period. Jennison Associates LLC grew its holdings in DexCom by 211.2% during the second quarter. Jennison Associates LLC now owns 1,391,980 shares of the medical device company’s stock worth $208,574,000 after acquiring an additional 944,642 shares during the period. Orbimed Advisors LLC grew its holdings in DexCom by 89.5% during the second quarter. Orbimed Advisors LLC now owns 262,900 shares of the medical device company’s stock worth $39,393,000 after acquiring an additional 124,200 shares during the period. Finally, C WorldWide Group Holding A S grew its holdings in DexCom by 352.5% during the second quarter. C WorldWide Group Holding A S now owns 121,949 shares of the medical device company’s stock worth $18,273,000 after acquiring an additional 95,000 shares during the period. 96.30% of the stock is currently owned by institutional investors.

About DexCom

DexCom, Inc, a medical device company, focuses on the design, development, and commercialization of continuous glucose monitoring (CGM) systems in the United States and internationally. The company offers its systems for ambulatory use by people with diabetes; and for use by healthcare providers. Its products include DexCom G6, a CGM system for diabetes management; DexCom G5 mobile CGM system to communicate directly to patient's mobile device; DexCom G4 PLATINUM system for continuous use by adults with diabetes; and DexCom Share, a remote monitoring system.

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