DexCom (NASDAQ:DXCM) Share Price Breaks Above Fifty Day Moving Average – Should You Sell?

DexCom, Inc. (NASDAQ:DXCM)’s share price crossed above its fifty day moving average during trading on Wednesday. The stock has a fifty day moving average of $85.49 and traded as high as $88.96. DexCom shares last traded at $88.4310, with a volume of 5,248,232 shares.

Analyst Upgrades and Downgrades

DXCM has been the topic of several research analyst reports. Evercore raised their target price on shares of DexCom from $90.00 to $110.00 and gave the stock an “outperform” rating in a research report on Wednesday, October 7th. Wall Street Zen raised shares of DexCom from a “hold” rating to a “buy” rating in a research report on Sunday, September 6th. Royal Bank Of Canada reaffirmed an “outperform” rating and issued a $105.00 target price (up from $90.00) on shares of DexCom in a research report on Thursday, October 1st. Argus lifted their target price on DexCom from $86.00 to $96.00 and gave the stock a “buy” rating in a research report on Tuesday, August 4th. Finally, JPMorgan Chase & Co. boosted their target price on shares of DexCom from $82.00 to $85.00 and gave the stock a “neutral” rating in a research report on Friday, October 30th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-four have assigned a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, the company has an average rating of “Buy” and a consensus target price of $95.50.

DexCom Price Performance

The company has a 50 day moving average of $85.49 and a two-hundred day moving average of $74.89. The firm has a market cap of $32.98 billion, a P/E ratio of 34.68, a PEG ratio of 1.37 and a beta of 1.45. The company has a quick ratio of 1.40, a current ratio of 1.74 and a debt-to-equity ratio of 0.49.

DexCom (NASDAQ:DXCM) last released its earnings results on Thursday, October 29th. The medical device company reported $0.73 EPS for the quarter, beating the consensus estimate of $0.68 by $0.05. DexCom had a net margin of 19.42% and a return on equity of 37.77%. The business had revenue of $1.34 billion during the quarter, compared to analyst estimates of $1.33 billion. During the same period in the prior year, the business earned $0.61 earnings per share. The business’s quarterly revenue was up 11.1% on a year-over-year basis. Sell-side analysts expect that DexCom, Inc. will post 2.67 EPS for the current year.

Insider Buying and Selling

In related news, Director Nicholas Augustinos sold 6,539 shares of the firm’s stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $84.04, for a total value of $549,537.56. Following the transaction, the director directly owned 29,293 shares in the company, valued at approximately $2,461,783.72. This trade represents a 18.25% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Sadie Stern sold 2,565 shares of the business’s stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $88.37, for a total transaction of $226,669.05. Following the transaction, the executive vice president directly owned 126,043 shares in the company, valued at $11,138,419.91. This trade represents a 1.99% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 22,822 shares of company stock valued at $1,920,193 in the last three months. 0.28% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On DexCom

A number of hedge funds have recently made changes to their positions in the company. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its holdings in shares of DexCom by 15.6% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 11,261,876 shares of the medical device company’s stock worth $758,487,000 after buying an additional 1,515,702 shares in the last quarter. Janus Henderson Group PLC boosted its position in DexCom by 32.3% during the 1st quarter. Janus Henderson Group PLC now owns 2,644,539 shares of the medical device company’s stock worth $166,077,000 after acquiring an additional 645,534 shares during the last quarter. Legal & General Group Plc bought a new position in shares of DexCom during the 2nd quarter worth approximately $173,237,000. Arrowstreet Capital Limited Partnership grew its stake in shares of DexCom by 100.4% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 2,545,103 shares of the medical device company’s stock worth $159,832,000 after acquiring an additional 1,275,142 shares in the last quarter. Finally, Deutsche Bank AG bought a new position in shares of DexCom during the 2nd quarter worth approximately $164,035,000. Institutional investors and hedge funds own 97.75% of the company’s stock.

DexCom Company Profile

DexCom, Inc develops and commercializes continuous glucose monitoring (CGM) systems for people with diabetes. Its devices use a small wearable sensor to measure glucose levels in real time and transmit readings to compatible smartphones, receivers, smartwatches, and other connected devices, helping users monitor glucose trends and make informed decisions about their health.

The company’s product portfolio includes the Dexcom G7 and Dexcom G6 CGM systems, as well as Dexcom ONE and Dexcom ONE+ products offered in select markets.