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A Closer Look at Dexcom Stock’s 117% Year-to-Date Growth

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Stock performance

On November 23, Dexcom (DXCM) stock closed at $124.28, a rise of ~2.20% from its previous day’s close of $121.61. The stock rose from $57.39 at the close of market on December 29, 2017, to $124.28 at the close of market on November 8, 2018, representing ~117% year-to-date growth.

On November 23, Dexcom stock closed at $124.28, a rise of ~143% from its 52-week low of $51.04 on January 4. Dexcom hit its 52-week high of $152.14 on November 8.

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Recent developments

In October, Dexcom announced that the US Centers for Medicare & Medicaid Services would cover the new Dexcom G6 Continuous Glucose Monitoring System for Medicare beneficiaries. Dexcom expects to initiate delivery to Medicare beneficiaries in the first half of 2019.

Financials in a nutshell

Dexcom generated net revenue of $693.6 million in the first nine months of 2018 compared to $497.5 million in the same period of 2017, reflecting a ~39% rise YoY (year-over-year).

Dexcom’s gross profit in the first nine months of 2018 amounted to $441.1 million compared to $338.6 million in the same period last year. Dexcom reported net operating expenses of $462.8 million in the first nine months of 2018 compared to $393.1 million in the same period last year.

The company’s net income and basic EPS in the first nine months of 2018 amounted to $52.6 million and $0.60, respectively, compared to its net income and basic EPS of -$40.8 million and -$0.47, respectively, in the same period last year.

Analysts’ recommendations

Of the 19 analysts tracking Dexcom in November, eight have recommended “strong buys,” while seven have recommended “buys” on the stock. Five analysts have recommended “holds” on Dexcom in November.

On November 26, Dexcom had a consensus 12-month target price of $151.63, which represents a potential ~22.01% return on investment over the next 12 months.

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