Stock Analysis

Don't Ignore The Fact That This Insider Just Sold Some Shares In DexCom, Inc. (NASDAQ:DXCM)

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We wouldn't blame DexCom, Inc. (NASDAQ:DXCM) shareholders if they were a little worried about the fact that Kevin Sayer, the Executive Chairman recently netted about US$4.8m selling shares at an average price of US$106. That sale reduced their total holding by 14% which is hardly insignificant, but far from the worst we've seen.

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DexCom Insider Transactions Over The Last Year

In fact, the recent sale by Kevin Sayer was the biggest sale of DexCom shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of US$104. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

NasdaqGS:DXCM Insider Trading Volume January 26th 2023

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Insider Ownership Of DexCom

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. DexCom insiders own about US$182m worth of shares (which is 0.5% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The DexCom Insider Transactions Indicate?

An insider hasn't bought DexCom stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing DexCom. In terms of investment risks, we've identified 2 warning signs with DexCom and understanding them should be part of your investment process.

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For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

What are the risks and opportunities for DexCom?

DexCom, Inc., a medical device company, focuses on the design, development, and commercialization of continuous glucose monitoring (CGM) systems in the United States and internationally.

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  • Earnings are forecast to grow 27.21% per year

  • Earnings grew by 57.3% over the past year


  • Significant insider selling over the past 3 months

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