DexCom Inc. (NASDAQ:DXCM) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a research note issued on Tuesday.
According to Zacks, “DexCom Inc.’s margins would continue to be come under pressure in the coming quarters owing to high product development costs and rising expenditures on research & development along with marketing. Specifically, the company is expected to lose a few margins on transmitter sales in spite of the cost reduction initiatives (which are expected to be effective only by the second half of 2017). Additionally, cutthroat competition in the market for blood glucose monitoring devices is a major headwind. Entry of additional products in this market would also make it challenging for DexCom to protect or grow its market share. In fact DexCom might face supply constraints in the near-term with an increasing demand for its offerings. This is because the company relies highly on third parties for an assured steady supply of inputs.”
Several other equities analysts have also recently commented on DXCM. B. Riley assumed coverage on shares of DexCom in a research note on Monday, September 26th. They set a “neutral” rating and a $97.00 target price on the stock. BTIG Research restated a “buy” rating and set a $92.00 price objective on shares of DexCom in a research report on Thursday, August 4th. Canaccord Genuity restated a “buy” rating and set a $95.00 price objective on shares of DexCom in a research report on Wednesday, July 13th. JPMorgan Chase & Co. restated a “buy” rating on shares of DexCom in a research report on Monday, June 20th. Finally, Piper Jaffray Cos. restated an “overweight” rating and set a $93.00 price objective on shares of DexCom in a research report on Friday, July 15th. One analyst has rated the stock with a sell rating, four have issued a hold rating, thirteen have assigned a buy rating and one has assigned a strong buy rating to the company. The stock presently has an average rating of “Buy” and an average target price of $95.08.
DexCom (NASDAQ:DXCM) opened at 84.98 on Tuesday. The firm’s market cap is $7.13 billion. The company’s 50-day moving average is $91.77 and its 200 day moving average is $77.51. DexCom has a 12 month low of $47.92 and a 12 month high of $96.38.
DexCom (NASDAQ:DXCM) last released its earnings results on Tuesday, August 2nd. The medical device company reported ($0.24) EPS for the quarter, missing the Thomson Reuters’ consensus estimate of ($0.12) by $0.12. The company had revenue of $137.30 million for the quarter, compared to analyst estimates of $132.48 million. DexCom had a negative net margin of 16.42% and a negative return on equity of 19.68%. The firm’s quarterly revenue was up 47.3% on a year-over-year basis. During the same period in the previous year, the business posted ($0.05) EPS. On average, equities research analysts predict that DexCom will post ($0.57) earnings per share for the current year.
In other news, CEO Kevin R. Sayer sold 7,000 shares of DexCom stock in a transaction that occurred on Wednesday, July 13th. The shares were sold at an average price of $79.92, for a total value of $559,440.00. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, CEO Kevin R. Sayer sold 20,000 shares of DexCom stock in a transaction that occurred on Tuesday, August 9th. The shares were sold at an average price of $90.98, for a total transaction of $1,819,600.00. Following the completion of the transaction, the chief executive officer now directly owns 362,227 shares in the company, valued at approximately $32,955,412.46. The disclosure for this sale can be found here. Corporate insiders own 2.80% of the company’s stock.
Several institutional investors have recently added to or reduced their stakes in the stock. Bellwether Investment Group LLC purchased a new position in DexCom during the second quarter worth approximately $119,000. Bank of Montreal Can purchased a new position in DexCom during the second quarter worth approximately $134,000. CIBC Asset Management Inc purchased a new position in DexCom during the second quarter worth approximately $211,000. ProShare Advisors LLC purchased a new position in DexCom during the second quarter worth approximately $219,000. Finally, Suntrust Banks Inc. purchased a new position in DexCom during the second quarter worth approximately $230,000. 99.37% of the stock is currently owned by institutional investors.
Dexcom, Inc (Dexcom) is a medical device company. The Company is focused on the design, development and commercialization of continuous glucose monitoring systems for ambulatory use by people with diabetes and for use by healthcare providers for the treatment of people with and without diabetes. Its products include SEVEN PLUS, DexCom G4, DexCom G4 PLATINUM, DexCom Share System and DexCom G5 Mobile.
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