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Why Dexcom Stock Rose 6.8% Last Week


Apr. 4 2018, Updated 1:45 p.m. ET

Dexcom stock rose last week

Dexcom (DXCM) rose 6.8% in the week ended March 29, 2018, to close at $74.20. That day, DXCM was trading 74% above its 52-week low of $42.60 and 13% below its 52-week high of $85.30. It’s been trending high recently, driven by strong results, product approvals, and fundamental strength. However, the stock has fallen 9% over the past year. Peers Medtronic (MDT), Abbott Laboratories (ABT), and Tandem Diabetes Care (TNDM) have generated returns of -4.4%, 30.9%, and -60.8%, respectively, in the past year.

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Why has Dexcom been trending upward?

Dexcom stock fell more than 36% on September 28, 2017, after the FDA approved Abbott Laboratories’ (ABT) Freestyle Libre Flash CGM (continuous glucose monitoring) device. For more on the approval, read Abbott’s Breakthrough CGM Device Freestyle Libre Wins FDA Approval.

Wedbush decreased its target price for Dexcom following the announcement. However, DXCM stock has been regaining momentum since November 2017 with a significant rise in its stock over the past month on the back of strong quarterly results, certain patent litigation wins, and the FDA’s approval of its G6 integrated CGM device. Also, its competitor Medtronic (MDT) didn’t get non-adjunctive claim and thus Medicare coverage for its recently approved Guardian Connect system. On March 27, 2018, Dexcom received FDA approval for its G6 device, which is expected to be launched in late 2018. The stock rose ~4% on March 28, 2018, following the news.

Of the 17 analysts covering Dexcom, 11 are recommending a “buy,” five are recommending a “hold,” and one is recommending a “sell.” Wall Street analysts have a consensus average 12-month price target of $74.36, which implies a return potential of -0.23% for DXCM stock over the next 12 months.


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