October 8, 2023 – Peregrine Capital Management LLC, a prominent institutional investor, recently disclosed a reduction in its holdings of medical device company DexCom, Inc. (NASDAQ: DXCM). According to the firm’s Form 13F filing with the Securities and Exchange Commission (SEC), Peregrine Capital Management LLC lowered its position in DexCom by 1.1% during the second quarter.
As per the filing, Peregrine Capital Management LLC owned 578,090 shares of DexCom after selling off 6,376 shares in the previous quarter. Although this reduction only constituted a minor decrease, it caused DexCom to represent approximately 2.0% of Peregrine Capital Management LLC’s overall portfolio holdings. The stock maintained its position as the third-largest holding for the institutional investor during this period.
The value of Peregrine Capital Management LLC’s stake in DexCom at the end of the most recent reporting period stood at $74,290,000. This represented about 0.15% of DexCom’s overall worth.
DexCom’s recent stock performance has seen some fluctuations. On Friday, October 8th, shares of DXCM traded down by $0.78 during midday trading, ultimately reaching $83.22. The trading volume for that day was around 6,761,720 shares compared to an average daily volume of approximately 4,935,484 shares.
Over the past fifty days, DexCom has experienced a simple moving average price of $102.95 while its two-hundred-day simple moving average settled at $115.70. Within the past year alone, DexCom’s stock prices have ranged from a low of $80.80 to a high of $139.55.
The market capitalization for DexCom currently stands at an impressive $32.28 billion while having a price-to-earnings ratio of 96.77. Furthermore, the stock has a price-to-earnings-growth ratio of 1.58 and a beta of 1.13.
DexCom holds a debt-to-equity ratio of 1.16 and boasts a promising current ratio of 2.42 along with a quick ratio of 2.21.
As Peregrine Capital Management LLC chose to reduce its holdings in DexCom during the second quarter, it will be interesting to monitor the possible ramifications for both parties involved moving forward. Investors and market observers alike can expect further insight into DexCom’s trajectory and performance as additional updates become available in this dynamic and evolving landscape.
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DexCom Gains Attention from Institutional Investors and Hedge Funds
In recent months, several institutional investors and hedge funds have been actively buying and selling shares of DexCom (NASDAQ:DXCM), a prominent medical device company. Centaurus Financial Inc., for instance, increased its holdings in the company by 5.5% during the first quarter. The firm now owns 1,236 shares of DexCom’s stock valued at $632,000 after purchasing an additional 64 shares in the last quarter.
Another notable name in this trend is Brown Brothers Harriman & Co., which boosted its position in DexCom by 1.7% during the first quarter as well. The firm now owns 5,058 shares of the medical device company’s stock valued at $588,000 after acquiring an additional 85 shares during the last quarter.
Fulton Bank N.A., Covenant Partners LLC, and Ascent Group LLC also saw increases in their positions in DexCom during various quarters this year. Fulton Bank N.A. raised its position by 3.0%, owning 3,013 shares valued at $387,000 after acquiring an additional 88 shares. Covenant Partners LLC raised its position by 2.2%, owning 4,182 shares valued at $486,000 after acquiring an additional 92 shares. Ascent Group LLC raised its position by 2.1%, owning 4,778 shares valued at $577,000 after acquiring an additional 98 shares.
These moves are indicative of a broader trend seen recently where hedge funds and other institutional investors have significantly increased their ownership stake in DexCom. As it stands today, these funds own a considerable majority (93.88%) of the company’s stock.
Notably, there has been recent activity from directors selling off some of their holdings in DexCom as well. Director Steven Robert Pacelli sold a total of 411 shares on Friday, September 22nd for an average price of $88.40, amounting to a total value of $36,332.40. Following the sale, Pacelli still owns 125,597 shares of the company’s stock, valued at $11,102,774.80.
Additionally, Director Steven R. Altman sold 1,000 shares of DexCom stock on Friday, September 15th for an average price of $101.50, totaling $101,500. After this transaction, Altman now owns 61,700 shares in the company valued at approximately $6,262,550.
These sales by insiders are part of a larger trend as well; over the past quarter alone, insiders have sold a total of 10,549 shares valued at $1,275,573. This amounts to 0.41% of the stock being owned by insiders.
Turning to DexCom’s financial performance for its most recent quarter ending on July 27th, the medical device company reported earnings per share (EPS) of $0.34. This beats analysts’ consensus estimates by $0.12 and reflects an increase compared to the same quarter in the previous year when DexCom earned EPS of $0.17.
Furthermore, DexCom generated revenue of $871.30 million during the quarter — surpassing analysts’ consensus estimate of $841.16 million — and representing a year-over-year growth rate of 25.2%.
With strong financial results and positive momentum in stock ownership from institutional investors and hedge funds alike; it is no surprise that research analysts have taken note. Numerous commentaries have been made regarding DexCom’s potential.
For instance:
– Morgan Stanley decreased its price objective from $131 to $98 but maintained an “equal weight” rating.
– Canaccord Genuity Group increased its price objective from $135 to $150 and gave the company a “buy” rating.
– Citigroup decreased its price objective from $150 to $115.
– Barclays raised its price target from $115 to $138 and gave the stock an “equal weight” rating.
– UBS Group reduced its price target from $175 to $138 but maintained a “buy” rating.
With three equities research analysts giving it a hold rating, ten assigning a buy rating, and one issuing a strong buy rating, Bloomberg.com reports that the consensus rating for DexCom’s stock is currently categorized as “Moderate Buy.” The consensus target price stands at $132.06.
All in all, DexCom appears to be attracting attention from various stakeholders within the investment community. With promising financial performance and notable activities among institutional investors and hedge funds, the company may continue to generate interest and confidence among market participants.