On August 23, 2023, Steven Pacelli, the Executive Vice President and Managing Director of DexCom Inc (DXCM, Financial), sold 411 shares of the company. This move is part of a larger trend of insider selling within the company over the past year.
DexCom Inc is a leading company in the healthcare sector, specializing in the design, development, and commercialization of continuous glucose monitoring systems for ambulatory use by people with diabetes and for use by healthcare providers in the hospital.
Over the past year, the insider has sold a total of 18,799 shares and has not made any purchases. This trend is mirrored in the company's overall insider transaction history, with 40 insider sells and 0 insider buys over the same timeframe.
The stock was trading at $107.03 per share on the day of the insider's recent sale, giving DexCom Inc a market cap of $39.836 billion. The price-earnings ratio stands at 119.42, which is higher than the industry median of 27.9 but lower than the company’s historical median price-earnings ratio.
The GF Value of DexCom Inc is $141.75, resulting in a price-to-GF-Value ratio of 0.76. This suggests that the stock is modestly undervalued.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at, a GuruFocus adjustment factor based on the company’s past returns and growth, and future estimates of business performance from Morningstar analysts.
The recent sale by the insider, coupled with the overall trend of insider selling, could be a signal to investors. However, the stock's current valuation suggests it may still be a good buy. As always, investors should conduct their own research and consider multiple factors before making investment decisions.
