Dexcom’s chief legal officer sells $914,941 in stock

Dexcom Inc.’s (NASDAQ:DXCM) Executive Vice President and Chief Legal Officer, Michael Jon Brown, recently sold 13,000 shares of the company’s common stock. The timing of this sale comes as the stock has declined 12% over the past week, with InvestingPro data indicating the stock is currently in oversold territory. The shares were sold at an average price of $70.38 each, amounting to a total transaction value of approximately $914,941. Following this transaction, Brown holds 105,602 shares, which include 86,490 unvested restricted stock units. The sale was conducted to cover tax withholding obligations related to the vesting of restricted stock units, as mandated by Dexcom’s equity incentive plans. Despite the insider sale, analysts maintain a bullish outlook with price targets ranging from $82 to $120, according to InvestingPro data, which also reveals 13 additional key insights about DXCM’s valuation and growth prospects.

In other recent news, DexCom reported fourth-quarter earnings with adjusted earnings per share of $0.45, which fell short of the $0.52 consensus estimate. However, the company’s revenue for the quarter reached $1.11 billion, slightly surpassing the expected $1.1 billion and marking an 8% increase year-over-year. For the full year 2024, DexCom’s revenue grew 11% to $4.03 billion, with U.S. revenue increasing by 10% and international revenue rising 15%. The company has forecasted a 2025 revenue of approximately $4.6 billion, slightly below the consensus of $4.61 billion.

Amid these developments, DexCom received a warning letter from the FDA following inspections of its manufacturing facilities, which highlighted deficiencies in manufacturing processes and quality management systems. Despite this, BTIG analysts maintained their Buy rating and $120 price target, expressing confidence in DexCom’s ability to address the FDA’s concerns without major disruptions. Meanwhile, Bernstein analysts raised their price target for DexCom shares to $100 from $89, citing a return to stability after a challenging second quarter of 2024. Additionally, DexCom announced the appointment of Renée Galá to its Board of Directors, bringing extensive experience from her role at Jazz Pharmaceuticals (NASDAQ:JAZZ).

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