DexCom (DXCM) Downgraded by Zacks Investment Research to Sell

Zacks Investment Research lowered shares of DexCom (NASDAQ:DXCM) from a hold rating to a sell rating in a research note released on Friday, March 2nd.

According to Zacks, “Cutthroat competition in the market for blood & glucose monitoring devices is a headwind for DexCom at the moment. We believe the company’s margins will continue to be under pressure in the coming quarters, owing to high product development costs and rising expenditures on research & development. Lower expected margins on transmitter sales are also a cause of concern. However, DexCom exited the fourth quarter on a solid note. The year-over-year growth in revenues and earnings is encouraging. The company is well positioned in the MedTech space, courtesy of solid contribution from Sensor revenues, Transmitter revenues and Receiver revenues in the last few quarters. The glucose monitoring market represents significant commercial opportunity for DexCom. The company’s solid foothold in the international markets, especially Germany, broad spectrum of products and strategic collaborations, are promising.”

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Several other research firms have also issued reports on DXCM. Morgan Stanley reduced their target price on shares of DexCom from $72.00 to $52.00 and set a neutral rating for the company in a report on Friday, November 3rd. BidaskClub raised shares of DexCom from a buy rating to a strong-buy rating in a report on Tuesday, December 12th. Northland Securities reissued a sell rating and issued a $40.00 target price on shares of DexCom in a report on Tuesday, January 16th. Jefferies Group increased their target price on shares of DexCom from $58.00 to $70.00 and gave the stock a buy rating in a report on Friday, December 22nd. Finally, BMO Capital Markets increased their target price on shares of DexCom to $74.00 and gave the stock an outperform rating in a report on Tuesday, December 12th. Two analysts have rated the stock with a sell rating, six have issued a hold rating, fourteen have given a buy rating and one has assigned a strong buy rating to the company. The stock currently has a consensus rating of Buy and a consensus price target of $67.03.

DexCom (DXCM) traded down $0.18 during midday trading on Friday, hitting $69.99. 2,296,931 shares of the stock traded hands, compared to its average volume of 1,262,989. DexCom has a 12-month low of $42.62 and a 12-month high of $86.32. The stock has a market cap of $5,985.40, a price-to-earnings ratio of -118.63 and a beta of 0.27. The company has a quick ratio of 5.04, a current ratio of 5.36 and a debt-to-equity ratio of 0.78.

DexCom (NASDAQ:DXCM) last released its quarterly earnings results on Tuesday, February 27th. The medical device company reported $0.10 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.03 by $0.07. DexCom had a negative net margin of 6.99% and a negative return on equity of 13.99%. The firm had revenue of $221.00 million during the quarter, compared to analyst estimates of $217.82 million. analysts forecast that DexCom will post -0.56 EPS for the current fiscal year.

In other news, EVP Richard Doubleday sold 1,638 shares of the stock in a transaction that occurred on Friday, February 23rd. The stock was sold at an average price of $56.32, for a total transaction of $92,252.16. Following the completion of the transaction, the executive vice president now directly owns 65,049 shares in the company, valued at approximately $3,663,559.68. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Terrance H. Gregg sold 10,000 shares of the stock in a transaction that occurred on Thursday, March 15th. The shares were sold at an average price of $65.51, for a total value of $655,100.00. Following the transaction, the insider now owns 521,674 shares of the company’s stock, valued at $34,174,863.74. The disclosure for this sale can be found here. Insiders have sold a total of 33,273 shares of company stock valued at $1,964,438 over the last quarter. Corporate insiders own 1.70% of the company’s stock.

A number of institutional investors and hedge funds have recently modified their holdings of the stock. American International Group Inc. bought a new stake in DexCom in the fourth quarter worth $116,000. Thompson Davis & CO. Inc. bought a new stake in DexCom in the fourth quarter worth $137,000. The Manufacturers Life Insurance Company lifted its position in DexCom by 12.2% in the second quarter. The Manufacturers Life Insurance Company now owns 3,254 shares of the medical device company’s stock worth $238,000 after buying an additional 354 shares during the last quarter. Zions Bancorporation lifted its position in DexCom by 36,222.2% in the third quarter. Zions Bancorporation now owns 3,269 shares of the medical device company’s stock worth $160,000 after buying an additional 3,260 shares during the last quarter. Finally, Marco Investment Management LLC bought a new stake in DexCom in the fourth quarter worth $201,000.

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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 (CGM) systems for ambulatory use by people with diabetes and for use by healthcare providers. The Company’s products consist of DexCom G4 PLATINUM and DexCom G5 Mobile.

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