How DexCom Inc. (DXCM) Works From A Technical Perspective

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DexCom Inc. (NASDAQ:DXCM) finished Wednesday with a subtraction of -$2.91 to close at $84.46, a downside of -3.33 percent. An average of 2,234,520 shares of common stock have been traded in the last five days. There was a fall of -$6.11 in the past week, and it reached a new high 9 times over the past 12 months. The last 20 days have seen an average of 2,369,400 shares traded, while the 50-day average volume stands at 2,629,284.

DXCM stock has increased by 0.19% in the last month. The company shares reached their 1-month lowest point of $79.37 on 09/01/22. With the stock rallying to its 52-week high on 04/04/22, shares of the company touched a low of $66.89 and a high of $164.86 in 52 weeks. It has reached a new high 3 times so far this year and lost -37.08% or -$49.78 in price. In spite of this, the price is down -48.77% from the 52-week high.


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Insider Transactions

21 days have passed since DexCom Inc. (DXCM) last reported insider trading activity. Dolan Matthew Vincent, who is SVP Corporate Strategy-Develop, most recently acquired $5 shares at $81.63 per share on Sep 01. In this transaction, the insider spent $408. EVP Managing Director Dexcom V, Pacelli Steven Robert, disposed of 1,000 shares at a price of $84.21 on Aug 23. The insider now owns more than $84,210 worth of shares. Prior to that, EVP Managing Director Dexcom V Pacelli Steven Robert went on to Sale 1,000 shares at $83.07 each on Jul 25. An amount of $83,070 was transacted.

Valuation Metrics

DexCom Inc. (DXCM) has a trailing price-to-earnings (P/E) ratio of 178.19. The stock’s beta is 1.04. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 12.53, the price-to-book (PB) ratio at 14.69, and the price-to-cash flow ratio at 155.38.

Financial Health

The quick ratio of DexCom Inc. for the three months ended June 29 was 4.30, and the current ratio was 4.70, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.90 and a total debt to equity ratio of 0.90 for the quarter ending June 29. Its gross profit as reported stood at $1.68 billion compared to revenue of $2.45 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, DexCom Inc.’s return on assets was 4.00%.

Earnings Surprise

In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $50.9 million in the quarter, while revenues of $97.3 million were shrunk -23.58%. The analyst consensus anticipated DexCom Inc.’s latest quarter earnings to come in at $0.19 per share, but it turned out to be $0.17, a -10.50% surprise. For the quarter, EBITDA amounted to $120.6 million. Shareholders own equity worth $392.58 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at DexCom Inc. (DXCM) price momentum. RSI 9-day as of the close on 21 September was 38.79%, suggesting the stock is Neutral, with historical volatility in this time frame at 35.83%.

As of today, DXCM’s price is $88.17 -6.75% or -$6.11 from its 5-day moving average. DXCM is currently trading +0.99% higher than its 20-day SMA and -18.24% lower than its 100-day SMA. However, the stock’s current price level is +8.21% above the SMA50 and -34.97% below the SMA200.

The stochastic %K and %D were 48.36% and 59.43%, respectively, and the average true range (ATR) was 3.52. With the 14-day stochastic at 34.09% and the average true range at 3.52, the RSI (14) stands at 44.39%. The stock has reached -3.15 on the 9-day MACD Oscillator while the 14-day reading was at -1.60.

Analyst Ratings

Bernstein launched coverage on DexCom Inc. (NASDAQ: DXCM) in its analyst report released on July 15, 2022. The firm assigned the stock an Outperform rating. The consensus rating for DexCom Inc. (DXCM) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell DXCM, while 3 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 3 analysts, while 12 others rate it as a “buy”.

What is DXCM’s price target for the next 12 months?

Analysts predict a range of price targets between $83.00 and $112.00, with a median target of $100.00. Taking a look at these predictions, the average price target given by analysts for DexCom Inc. (DXCM) stock is $99.80.

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