Quentin Blackford Is The Chief Operating Officer of DexCom, Inc. (NASDAQ:DXCM) And They Just Sold 98% Of Their Shares

We wouldn't blame DexCom, Inc. (NASDAQ:DXCM) shareholders if they were a little worried about the fact that Quentin Blackford, the Chief Operating Officer recently netted about US$5.0m selling shares at an average price of US$545. That diminished their holding by a very significant 98%, which arguably implies a strong desire to reallocate capital.

Check out our latest analysis for DexCom

DexCom Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Executive Chairman, Kevin Sayer, sold US$14m worth of shares at a price of US$362 per share. That means that an insider was selling shares at slightly below the current price (US$549). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 31% of Kevin Sayer's holding.

Insiders in DexCom didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does DexCom Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It's great to see that DexCom insiders own 0.5% of the company, worth about US$271m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The DexCom Insider Transactions Indicate?

An insider sold DexCom shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. On the plus side, DexCom makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 4 warning signs for DexCom (of which 1 shouldn't be ignored!) you should know about.

Of course DexCom may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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