DexCom (NASDAQ:DXCM) Shares Up 5.3% After Earnings Beat

DexCom, Inc. (NASDAQ:DXCM) shares traded up 5.3% during trading on Friday after the company announced better than expected quarterly earnings. The company traded as high as $85.25 and last traded at $84.1520. Approximately 1,425,039 shares traded hands during trading, a decline of 71% from the average session volume of 4,995,772 shares. The stock had previously closed at $79.93.

The medical device company reported $0.73 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.68 by $0.05. The business had revenue of $1.34 billion for the quarter, compared to the consensus estimate of $1.33 billion. DexCom had a return on equity of 35.94% and a net margin of 20.12%. The business’s revenue was up 11.1% on a year-over-year basis. During the same quarter last year, the business posted $0.61 EPS.

Trending Headlines about DexCom

Here are the key news stories impacting DexCom this week:

• Positive Sentiment: Strong third-quarter results: DexCom reported adjusted earnings of $0.73 per share, exceeding consensus estimates of approximately $0.66–$0.68, while revenue of $1.34 billion topped expectations by about $10 million. Revenue increased roughly 11% year over year, and operating profit rose sharply, highlighting continued margin improvement. DexCom Third-Quarter Earnings Results
• Positive Sentiment: Higher outlook: Management raised its 2026 sales guidance, reinforcing investor confidence that demand for DexCom’s continuous glucose monitoring products remains resilient. DexCom Raises Sales Guidance
• Positive Sentiment: $1 billion buyback: DexCom authorized an equity repurchase program worth up to $1.0 billion. The plan may support earnings per share and signals that management views the company’s shares as an attractive use of capital. DexCom Announces $1 Billion Buyback
• Positive Sentiment: Product expansion: DexCom plans to launch its G7 15-day continuous glucose monitoring system in Canada in November, expanding the availability of its newest platform. DexCom G7 15-Day Canada Launch
• Negative Sentiment: Insider selling: Executive Vice President Sadie Stern sold 2,565 shares for approximately $202,000 under a pre-arranged Rule 10b5-1 plan. The scheduled nature of the transaction reduces its significance, but continued insider sales may temper sentiment. DexCom Insider Sale

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on the stock. TD Cowen restated a “buy” rating and set a $95.00 price objective on shares of DexCom in a research report on Friday, September 18th. Benchmark lifted their price target on DexCom from $77.00 to $82.00 and gave the stock a “buy” rating in a research note on Friday, July 31st. Piper Sandler reiterated an “overweight” rating and issued a $95.00 target price (up from $88.00) on shares of DexCom in a report on Friday, July 31st. Argus lifted their price target on DexCom from $86.00 to $96.00 and gave the company a “buy” rating in a report on Tuesday, August 4th. Finally, Stifel Nicolaus set a $95.00 price objective on DexCom and gave the stock a “buy” rating in a report on Friday, July 31st. Three investment analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat, DexCom presently has an average rating of “Buy” and a consensus price target of $92.57.

Insider Activity at DexCom

In other news, EVP Michael Brown sold 1,700 shares of the company’s stock in a transaction dated Thursday, October 15th. The stock was sold at an average price of $85.48, for a total transaction of $145,316.00. Following the completion of the transaction, the executive vice president directly owned 98,185 shares of the company’s stock, valued at $8,392,853.80. This represents a 1.70% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark G. Foletta sold 2,000 shares of the stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $85.32, for a total transaction of $170,640.00. Following the transaction, the director owned 48,852 shares of the company’s stock, valued at $4,168,052.64. The trade was a 3.93% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 24,822 shares of company stock worth $2,090,833. 0.28% of the stock is owned by company insiders.

Institutional Investors Weigh In On DexCom

Hedge funds have recently added to or reduced their stakes in the business. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its stake in 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 purchasing an additional 1,515,702 shares during the last quarter. Legal & General Group Plc acquired a new stake in DexCom in the second quarter valued at approximately $173,237,000. Janus Henderson Group PLC increased its holdings in shares of DexCom by 32.3% during the first quarter. Janus Henderson Group PLC now owns 2,644,539 shares of the medical device company’s stock worth $166,077,000 after buying an additional 645,534 shares in the last quarter. Deutsche Bank AG bought a new position in DexCom in the second quarter valued at about $164,035,000. Finally, Arrowstreet Capital Limited Partnership lifted its holdings in shares of DexCom by 100.4% during the first quarter. Arrowstreet Capital Limited Partnership now owns 2,545,103 shares of the medical device company’s stock worth $159,832,000 after purchasing an additional 1,275,142 shares during the period. Institutional investors and hedge funds own 97.75% of the company’s stock.

DexCom Trading Up 3.8%

The company has a quick ratio of 1.43, a current ratio of 1.73 and a debt-to-equity ratio of 0.47. The firm has a 50 day moving average price of $85.98 and a two-hundred day moving average price of $74.60. The company has a market cap of $31.30 billion, a price-to-earnings ratio of 32.81, a PEG ratio of 1.32 and a beta of 1.48.

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.