What Happened?
Shares of medical device company DexCom (NASDAQ: DXCM) jumped 3.3% in the afternoon session after company executives provided an optimistic outlook at the Wells Fargo Healthcare Conference on Wednesday.
During the conference, management expressed confidence in achieving "strong double-digit growth into the foreseeable future." The company also noted that a new product launch is "imminent." A key catalyst highlighted was the expansion of market access, with the third quarter being the first time all three major Pharmacy Benefit Managers (PBMs) will provide coverage for its non-insulin diabetes products. The company's leadership described this expanded coverage as a "real good opportunity," signaling a positive trajectory for future sales and market penetration.
After the initial pop the shares cooled down to $81.11, up 2.8% from previous close.
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What Is The Market Telling Us
DexCom’s shares are somewhat volatile and have had 14 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 2 months ago when the stock gained 6.3% on the news that the major indices rebounded (Nasdaq +1.4%, S&P 500 +1.0%) on hopes the reported ceasefire between Israel and Iran will hold. This de-escalation in a volatile region helped to ease concerns about potential disruptions to global oil supplies, leading to a notable dip in crude oil prices. Additionally, dovish signals from Federal Reserve Chair Jerome Powell in his Congressional testimony, reaffirming a "wait-and-see" approach on interest rates, further calmed markets, improving investors' appetite for stocks and other risk assets.
DexCom is up 3.3% since the beginning of the year, but at $81.11 per share, it is still trading 10.6% below its 52-week high of $90.75 from February 2025. Investors who bought $1,000 worth of DexCom’s shares 5 years ago would now be looking at an investment worth $814.68.
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