Robert W. Baird has recently reduced DexCom Inc (DXCM) stock to Neutral rating, as announced on July 26, 2024, according to Finviz. Earlier, on July 26, 2024, JP Morgan had reduced the stock from a Overweight to Neutral, setting a price target of $75 for DXCM stock. Redburn Atlantic also initiated Neutral rating with a price target of $130. Additionally, RBC Capital Mkts initiated Outperform rating on March 12, 2024, with a target price of $165. Morgan Stanley analysts, in their report published on May 30, 2023, also resumed rating and set a price target of $131 for DexCom Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
DexCom Inc (DXCM) Stock Trading Recap
On Friday, DexCom Inc (DXCM) stock saw a decline, ending the day at $77.5 which represents a decrease of $-0.60 or -0.77% from the prior close of $78.1. The stock opened at $78.4 and touched a low of $77.89 during the day, reaching a high of $79.37. The volume of shares traded was 1.51 million falling short of the average volume of 4.34 million.
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DXCM Stock Performance and Moving Averages
In recent trading, DexCom Inc (DXCM) stock price has shown some volatility, fluctuating 4.08% over the last five trades and 7.94% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by -34.75%, and it has gained 11.77% in the previous three months. Currently, DXCM is trading at 5.49%, 8.81%, and -22.97% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, DXCM, a Healthcare sector stock, is trading -45.42% below its 52-week high but remains 24.32% above its 52-week low. The Average True Range (ATR) (14 days) of 2.48 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
DexCom Inc’s Profitability and Valuation Ratios
DexCom Inc’s profitability metrics reveal financial health. The company currently boasts an operating margin of 15.88% and a profit margin of 17.22%, with a gross margin of -34.75%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, DexCom Inc’s market capitalization stands at $30.27 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 46.46, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 38.13. Additionally, the Price-to-Sales Ratio is 7.66, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 15.3, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 1.29% of DexCom Inc (DXCM)’s shares, while financial institutions hold 93.17%.
Notable insider trades include Stern Sadie, EVP, Chief HR Officer at DexCom Inc (DXCM), who sold 4259 shares on Nov 20 ’24, at $74.73 each, totaling $0.32 million. On Nov 15 ’24, Sylvain Jereme M, EVP, Chief Financal Officer, sold 3500 shares for $75.51 each, amounting to $0.26 million. Additionally, on Jun 18 ’24, FOLETTA MARK G sold 3306 shares at $116.79 each, generating $0.39 million.
