DXCM Should I Buy
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DexCom Inc (DXCM) is not a strong buy at the moment for a beginner investor with a long-term focus. While the company has shown strong financial performance in Q4 2025 and has positive analyst sentiment, the technical indicators suggest a bearish trend, with the stock being oversold. Additionally, insider selling and lack of significant hedge fund activity raise concerns. Given the investor's preference for long-term growth, it may be better to wait for clearer signs of a reversal in the stock's trend or more favorable entry points.
The stock is in a bearish trend with the MACD histogram at -0.926 and negatively expanding, RSI at 10.549 indicating oversold conditions, and bearish moving averages (SMA_200 > SMA_20 > SMA_5). The stock is trading below key support levels, with S1 at 66.058 and S2 at 63.584.
Strong Q4 2025 financial performance with revenue up 13% YoY and net income up 76.2% YoY.
Positive analyst sentiment with multiple price target increases and a strong buy rating from Raymond James.
2026 revenue guidance reaffirmed, projecting growth between $5.16 billion and $5.25 billion.
Bearish technical indicators and oversold conditions.
Insider selling has increased by 161.76% over the last month.
Lack of significant hedge fund activity and neutral sentiment from institutional investors.
Post-market price drop of -1.41% following a regular market drop of -4.50%.
DexCom reported Q4 2025 revenue of $1.26 billion, up 13% YoY, and net income of $267.3 million, up 76.2% YoY. EPS increased to $0.67, up 81.08% YoY. However, gross margin dropped slightly to 62.93%, down -1.21% YoY. The company reaffirmed its 2026 revenue guidance, projecting growth between $5.16 billion and $5.25 billion.
Analysts are generally positive on DexCom, with multiple price target increases (e.g., Bernstein to $86, Mizuho to $78, Citi to $77) and upgrades (e.g., Morgan Stanley to Overweight). Analysts expect operational improvements and margin expansion from the G7 15-day rollout, with the stock positioned for multiple expansion in 2026.
