DexCom (NASDAQ:DXCM) Reaches New 52-Week High – Still a Buy?

DexCom, Inc. (NASDAQ:DXCM) shares hit a new 52-week high during mid-day trading on Friday . The company traded as high as $92.30 and last traded at $92.30, with a volume of 1834514 shares. The stock had previously closed at $90.22.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the company. Deutsche Bank Aktiengesellschaft began coverage on DexCom in a research report on Tuesday, June 23rd. They set a “buy” rating and a $86.00 price target for the company. Mizuho lifted their price objective on DexCom from $90.00 to $95.00 and gave the stock an “outperform” rating in a report on Friday, July 31st. Wells Fargo & Company increased their price target on shares of DexCom from $85.00 to $90.00 and gave the company an “overweight” rating in a research report on Friday, July 31st. JPMorgan Chase & Co. increased their price objective on DexCom from $65.00 to $82.00 and gave the stock a “neutral” rating in a report on Friday, July 31st. Finally, Stifel Nicolaus set a $95.00 target price on shares of DexCom and gave the company a “buy” rating in a research note on Friday, July 31st. Two investment analysts have rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $88.71.

DexCom Trading Up 2.3%

The stock has a 50 day moving average price of $77.15 and a 200-day moving average price of $70.79. The stock has a market capitalization of $34.85 billion, a PE ratio of 36.50, a P/E/G ratio of 1.52 and a beta of 1.41. The company has a current ratio of 1.73, a quick ratio of 1.43 and a debt-to-equity ratio of 0.47.

DexCom (NASDAQ:DXCM) last released its quarterly earnings results on Thursday, July 30th. The medical device company reported $0.70 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.61 by $0.09. The business had revenue of $1.31 billion during the quarter, compared to analyst estimates of $1.29 billion. DexCom had a return on equity of 35.94% and a net margin of 20.12%.DexCom’s revenue for the quarter was up 13.1% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.48 earnings per share. Sell-side analysts expect that DexCom, Inc. will post 2.64 earnings per share for the current year.

Insider Activity

In other news, Director Mark G. Foletta sold 2,000 shares of the stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $85.32, for a total transaction of $170,640.00. Following the transaction, the director directly owned 48,852 shares in the company, valued at approximately $4,168,052.64. This trade represents a 3.93% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Kevin R. Sayer sold 26,756 shares of the stock in a transaction dated Monday, July 20th. The shares were sold at an average price of $76.32, for a total transaction of $2,042,017.92. Following the sale, the insider directly owned 328,970 shares of the company’s stock, valued at approximately $25,106,990.40. The trade was a 7.52% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 73,035 shares of company stock valued at $5,446,673. Company insiders own 0.28% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. Reflection Asset Management purchased a new stake in shares of DexCom during the 4th quarter worth about $25,000. Ascentis Independent Advisors purchased a new position in DexCom in the 1st quarter valued at $25,000. MCF Advisors LLC acquired a new position in DexCom during the fourth quarter worth about $32,000. Wellington Grp LLC grew its position in shares of DexCom by 778.7% in the first quarter. Wellington Grp LLC now owns 536 shares of the medical device company’s stock valued at $34,000 after purchasing an additional 475 shares in the last quarter. Finally, DV Equities LLC purchased a new stake in DexCom in the 4th quarter valued at $36,000. 97.75% of the stock is currently owned by hedge funds and other institutional investors.

DexCom Company Profile

DexCom, Inc is a medical device company that develops, manufactures and distributes continuous glucose monitoring (CGM) systems for people with diabetes. Its products are designed to provide near real-time glucose readings, trend information and alerts to help patients and clinicians manage insulin dosing and reduce hypoglycemia and hyperglycemia. The company’s offerings combine wearable glucose sensors, wireless transmitters and software applications that deliver data to smartphones, dedicated receivers and cloud-based platforms for remote monitoring.

Founded in 1999 and headquartered in San Diego, California, DexCom has focused its business on advancing CGM technology and expanding clinical use beyond traditional insulin-dependent populations.