Atlantic Equities raised the price target for the DexCom Inc. (NASDAQ:DXCM) stock to “an Overweight”. The rating was released on April 15, 2021. We previously noted in another research note published on January 06, 2021 by UBS that upgraded the stock from a Neutral to a Buy with a price target of $445 for DXCM stock. The research report from Wells Fargo has downgraded the stock from Equal Weight to Underweight, with a price target set at $350. The stock was reiterated by Piper Sandler, who disclosed in a research note on May 27, 2020, to Overweight and set the price objective to $450. In their research brief published May 14, 2020, Wells Fargo analysts initiated the DexCom Inc. stock to Equal Weight with a price target of $420.
Historical Earnings Surprises and Revenue Forecasts
Profit is the most critical financial performance measure. Every investor in a business is looking forward to the earnings report as stock price to increase when earnings exceed market expectations and progressively decrease when earnings do not meet expectations. The firm reported an earnings per share (EPS) of $0.33 during the last quarter as opposed to a consensus estimate of $0.3, which indicates the company beat its estimate by $0.03, which implies that the company surprised the market by 10.00%. It appears that the average earnings per share estimate for the current quarter (ending in Jun 2021) is $0.46. This is an average of 20 analysts’ earnings, where the high earnings per share estimate is $0.62 and the low earnings per share estimate is $0.23. According to 20 analyst estimates, an average revenue estimate of $550.08M is projected for the current quarter with a high revenue estimate of $582.2M and a low estimate of $527M.
The latest trade, Performances and Moving Averages give us the following Picture
The share price of DexCom Inc. (NASDAQ:DXCM) dipped -8.44% to close Friday’s market session at $386.10, lower as compared to yesterday’s close. The stock price fluctuated between $384.82 and $403.16 throughout the trading session with the volume trading being 2744439 shares, which represented a significant variation when compared to the three months average volume of 777.67K shares. The firm’s stock price fluctuated -6.96% within the last five trades and 7.43% within the last 30 trades, which was a significant change from the beginning of this year. Despite the fact that the share price increased 10.59% in the last 6 months and 3.00% was added to its value over the previous 3 months. DXCM stock is trading at a margin of -2.25%, 1.55% and 0.78% apart from the 20-Day, 50-Day and 200-Day Simple Moving Average prices.
As of the close of trading, DXCM deals in the Healthcare domain. The stock is trading -15.37 percent below its 52-week high and 26.33 percent above its 52-week low. For example, looking both at the price and the high and low measurements of 52 weeks will give you a clearer picture of the direction the price is heading. The firm’s Weighted Alpha is -0.07. A positive weighted alpha indicates the firm has done well over the course of the year, whereas one below 0 indicates that the firm has done poorly.
What Does DexCom Inc.’s Profitability and Valuation Ratios Tell Us About the Stock?
With regard to the profitability of the company, the operating margin is currently at 15.90 percent and the profit margin is 26.70 percent, and the company has reported a gross margin of 67.70 percent. The profit margin, also known as the revenue ratio or gross profit ratio, is an efficiency figure used to estimate the business’s profitability by comparing net income and sales. The higher the number, the more profits are generated for the company and vice versa.
The stock’s market cap achieved a total value of $40.78 billion as of the last trading session. Market capitalization is the total value of all outstanding shares of a corporation and it is used to measure a company’s market value. The price-to-earnings ratio for DexCom Inc. (NASDAQ:DXCM) is 77.36. The price-to-earnings ratio is a method of assessing corporate values by comparing them to their per-share profit. Forward P/E stands at 113.93. Forward price-to-earnings is calculated using predicted earnings for the next financial year’s P/E determination. The stock has achieved an effective Price-to-Sales Ratio of 21.17 that mirrors the cost to be found for sales by the market. The firm managed a Price-to-Book ratio of 19.54, which equates the market value of a stock with its book value.
Is Insider Trading a Real Thing?
Almost all investors and traders prefer to invest in shares controlled by the management of a corporation as a management company will be more likely to run the business itself and to never conduct things against the management’s desires and will always try to do what is best for their shareholders. Currently, 0.70 percent of DexCom Inc. shares are owned by insiders, and 98.00 percent are held by financial institutions. Murphy Patrick Michael, the EVP, Chief Legal Officer at DexCom Inc. (DXCM) has sold 500 shares of firm on Apr 26 at a price of $415.83 against the total amount of $0.21 million. In another inside trade, Pacelli Steven Robert, Managing Dir., Dexcom Ventures of DexCom Inc. (NASDAQ:DXCM) sold 1,079 shares of the firm on Apr 23 for a total worth of $0.44 million at a price of $410.31. An inside trade which took place on Apr 15, EVP, Global Revenue of DexCom Inc. Flynn Paul R sold 758 shares of firm against total price of $0.3 million at the cost of $400.00 per share.