SAN DIEGO—Dexcom Inc. (NASDAQ:DXCM) Executive Vice President and Chief Operating Officer Jacob Steven Leach recently sold a portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Leach sold 744 shares of common stock on December 16 at a price of $76.87 per share, totaling $57,191. The transaction comes as Dexcom trades near $78, down about 38% year-to-date, though InvestingPro analysis indicates the stock is currently undervalued.
This transaction was part of a mandatory "sell to cover" arrangement designed to satisfy tax withholding obligations related to the vesting of restricted stock units (RSUs). Such sales are not discretionary trades by the executive but are required under Dexcom's equity incentive plans. Despite this sale, InvestingPro data shows management has been actively buying back shares, while maintaining strong financials with a current ratio of 2.46 and healthy profit margins of nearly 62%.
Following this transaction, Leach holds 264,171 shares directly. This figure includes 51,972 unvested restricted stock units set to vest over the next few years. Additionally, Leach indirectly holds 47,296 shares through family holdings, specifically the Gregg Family Grandchildren's Trust, where his spouse serves as a trustee. For comprehensive insider trading analysis and 12+ additional exclusive ProTips, visit InvestingPro.
In other recent news, DexCom has made significant strides in its operations. BofA Securities reaffirmed its buy rating on DexCom, citing the company's potential for accelerated revenue growth, introduction of new products, and profitable growth with expanding margins. The firm also highlighted DexCom's unique position among large-cap stocks and its potential for multiple expansion.
DexCom recently released its third quarter 2024 results, reporting a 3% organic revenue growth, reaching a total of $994 million. This growth was largely driven by a 12% surge in international revenue, despite a 2% decrease in U.S. revenue. The company continues to maintain its 2024 revenue guidance of $4.00 to $4.05 billion, reflecting an organic growth of 11% to 13%.
Recent developments include the launch of Stelo for adults with pre-diabetes or Type 2 diabetes, which has seen strong early adoption. Additionally, a 15-day G7 CGM system has been submitted for FDA review, with market release expected soon. Despite challenges such as slower new customer starts and increased rebate eligibility impacting U.S. revenue, DexCom reported record new patient starts in Q3 and a year-over-year growth of 27-28% in its U.S. installed base.
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