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Dexcom's COO sells shares worth over $85,000

Published 2024/06/12, 00:42

Jacob Steven Leach, the Executive Vice President and Chief Operating Officer of Dexcom Inc (NASDAQ:DXCM), a leader in glucose monitoring technology, has sold 745 shares of the company's common stock. The transaction, dated June 10, 2024, was executed at a price of $115.0508 per share, totaling over $85,712.

The shares sold by Leach were to cover tax withholding obligations related to the vesting of Restricted Stock Units (RSUs), as mandated by Dexcom's equity incentive plans. This "sell to cover" transaction is a standard procedure for handling tax liabilities that arise when RSUs vest and is not considered a discretionary trade by the reporting person.

Following this transaction, Leach's direct holdings in Dexcom Inc. amount to 265,577 shares. This figure includes 54,896 unvested RSUs with various vesting dates extending through March 8, 2027. Additionally, the total includes 145 shares acquired through Dexcom's 2015 Employee Stock Purchase Plan.

It is also noted that there are 47,296 shares held indirectly by Leach through family holdings. Specifically, these shares are part of the Gregg Family Grandchildren's Trust, where Leach's spouse serves as a trustee.

The sale was disclosed in a Form 4 filing with the Securities and Exchange Commission on June 11, 2024. The form was signed on behalf of Jacob Steven Leach by Jereme M Sylvain. Dexcom Inc. has not made any additional comments on the transaction.

In other recent news, DexCom , Inc. has been in the spotlight for several developments. The company reported a robust 25% organic revenue growth in Q1, with total revenue reaching $921 million. DexCom is also set to launch its first over-the-counter continuous glucose monitoring (CGM) product, Stelo, in the upcoming summer, as revealed in their earnings call.

On the technological front, DexCom has launched a feature that allows its Dexcom G7 CGM System to connect directly with Apple (NASDAQ:AAPL) Watch, making it the first and only CGM system to offer real-time glucose readings on a user's wrist without the need for an iPhone. This feature is currently available to DexCom G7 users in the United States, United Kingdom, and Ireland.

Analysts have also weighed in on DexCom's prospects. Oppenheimer maintained its Outperform rating for DexCom, while Redburn-Atlantic initiated coverage of DexCom shares with a Neutral rating. Both firms highlighted the potential market opportunity for DexCom's products, given the vast number of people with Type 2 diabetes and pre-diabetes in the US.

These recent developments highlight DexCom's commitment to innovation and its strategic initiatives to strengthen its market position in the CGM systems sector.

InvestingPro Insights

In light of the recent transaction by a high-level executive at Dexcom Inc (NASDAQ:DXCM), investors may be considering the company's financial stability and future growth prospects. Dexcom's commitment to innovation in glucose monitoring technology has been reflected in its financial metrics. As of the last twelve months as of Q1 2024, the company boasts a strong revenue growth of 25.78%, indicating a solid expansion in its market presence. Moreover, Dexcom's gross profit margin stands at an impressive 62.82%, showcasing the company's ability to maintain profitability amidst its growth endeavors.

InvestingPro Tips for Dexcom highlight that the company is trading at a low P/E ratio relative to near-term earnings growth, suggesting that its stock might be undervalized considering its earnings potential. Additionally, Dexcom is noted for operating with a moderate level of debt, which is a positive sign for investors concerned about financial resilience. For those interested in a deeper analysis, there are 11 more InvestingPro Tips available, which can be explored for a comprehensive understanding of Dexcom's financial health and investment potential.

InvestingPro Data further reveals that Dexcom has a market capitalization of $46.47 billion USD. While the company's P/E ratio is currently high at 70.56, the PEG ratio of 0.62 indicates that the company's earnings growth could justify this valuation. Investors should also note that Dexcom does not pay a dividend, which is a relevant consideration for those seeking regular income from their investments.

To access these insights and more, potential investors can visit InvestingPro and use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. This exclusive offer will provide investors with valuable information to make informed decisions about their investments in Dexcom Inc.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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