On July 24, 2023, Steven Pacelli, the Executive Vice President and Managing Director of DexCom Inc (DXCM, Financial), sold 412 shares of the company. This move is part of a broader trend of insider selling at DexCom Inc over the past year.
DexCom Inc is a leading company in the healthcare sector, specializing in the design, development, and commercialization of continuous glucose monitoring systems for people with diabetes. The company's unique technology is transforming the way people manage their diabetes by providing real-time, dynamic glucose information.
The insider transaction history for DexCom Inc shows a clear trend of insider selling. Over the past year, there have been 39 insider sells and 0 insider buys. This includes the recent sale by Steven Pacelli, who has sold a total of 20,388 shares over the past year and purchased 0 shares.
Despite the insider selling trend, the stock's valuation remains attractive. DexCom Inc was trading at $130.58 per share on the day of Pacelli's recent sale, giving the company a market cap of $50.48 billion. The price-earnings ratio is 186.03, significantly higher than the industry median of 30.6 and the company's historical median price-earnings ratio.
However, according to the GuruFocus Value, which is an intrinsic value estimate based on historical multiples, a GuruFocus adjustment factor, and future business performance estimates, DexCom Inc is modestly undervalued. With a price of $130.58 and a GuruFocus Value of $144.85, the stock has a price-to-GF-Value ratio of 0.9.
The insider selling trend at DexCom Inc, including the recent sale by Steven Pacelli, may raise some eyebrows among investors. However, the company's strong fundamentals and the stock's attractive valuation according to the GuruFocus Value suggest that DexCom Inc remains a solid investment opportunity.
As always, investors should conduct their own due diligence and consider multiple factors, including insider transactions, before making investment decisions.
