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.”
A number of other brokerages have also recently commented on DXCM. JPMorgan Chase & Co. reaffirmed a buy rating on shares of DexCom in a research note on Monday, June 20th. Jefferies Group reaffirmed a positive rating and issued a $98.00 price target on shares of DexCom in a research note on Friday, July 22nd. Canaccord Genuity reaffirmed a buy rating and issued a $95.00 price target on shares of DexCom in a research note on Wednesday, July 13th. BMO Capital Markets assumed coverage on DexCom in a research note on Friday, September 16th. They issued an outperform rating and a $112.00 price target for the company. Finally, Leerink Swann reaffirmed an outperform rating and issued a $90.00 price target on shares of DexCom in a research note on Wednesday, July 20th. One research analyst has rated the stock with a sell rating, four have issued a hold rating, thirteen have issued a buy rating and one has issued a strong buy rating to the stock. The stock currently has a consensus rating of Buy and a consensus target price of $95.08.
DexCom (NASDAQ:DXCM) traded up 0.11% during mid-day trading on Tuesday, reaching $83.17. 92,959 shares of the company’s stock were exchanged. DexCom has a 52-week low of $47.92 and a 52-week high of $96.38. The stock has a 50-day moving average price of $91.10 and a 200 day moving average price of $77.74. The company’s market cap is $6.98 billion.
DexCom (NASDAQ:DXCM) last released its earnings results on Tuesday, August 2nd. The medical device company reported ($0.24) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.12) by $0.12. DexCom had a negative net margin of 16.42% and a negative return on equity of 19.68%. The business had revenue of $137.30 million for the quarter, compared to analyst estimates of $132.48 million. During the same quarter in the previous year, the company posted ($0.05) earnings per share. The business’s revenue for the quarter was up 47.3% on a year-over-year basis. Equities analysts predict that DexCom will post ($0.57) earnings per share for the current fiscal year.
In other news, SVP Jeffrey Moy sold 12,843 shares of the stock in a transaction that occurred on Tuesday, July 19th. The stock was sold at an average price of $83.78, for a total value of $1,075,986.54. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Richard Doubleday sold 3,182 shares of the stock in a transaction that occurred on Friday, September 23rd. The shares were sold at an average price of $93.97, for a total value of $299,012.54. Following the completion of the sale, the executive vice president now directly owns 83,582 shares of the company’s stock, valued at approximately $7,854,200.54. The disclosure for this sale can be found here. Company insiders own 2.80% of the company’s stock.
Several large investors have recently added to or reduced their stakes in the stock. Loomis Sayles & Co. L P increased its stake in DexCom by 0.4% in the first quarter. Loomis Sayles & Co. L P now owns 25,898 shares of the medical device company’s stock valued at $1,759,000 after buying an additional 94 shares during the last quarter. Public Employees Retirement Association of Colorado increased its stake in DexCom by 0.5% in the second quarter. Public Employees Retirement Association of Colorado now owns 19,466 shares of the medical device company’s stock valued at $1,544,000 after buying an additional 94 shares during the last quarter. Hsbc Holdings PLC increased its stake in DexCom by 2.6% in the second quarter. Hsbc Holdings PLC now owns 3,944 shares of the medical device company’s stock valued at $313,000 after buying an additional 100 shares during the last quarter. Eqis Capital Management Inc. increased its stake in DexCom by 1.7% in the second quarter. Eqis Capital Management Inc. now owns 7,246 shares of the medical device company’s stock valued at $575,000 after buying an additional 119 shares during the last quarter. Finally, Metropolitan Life Insurance Co. NY increased its stake in DexCom by 4.0% in the second quarter. Metropolitan Life Insurance Co. NY now owns 6,183 shares of the medical device company’s stock valued at $490,000 after buying an additional 239 shares during the last quarter. 99.37% of the stock is owned by institutional investors.
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 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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