Is it Still Worthy to Invest in DexCom (DXCM)?

view original post

ClearBridge Investments, an investment management firm, published its “Large Cap Growth ESG Strategy” second quarter 2022 investor letter – a copy of which can be downloaded here. The ClearBridge Dividend Strategy outperformed its S&P 500 Index benchmark during the second quarter. On an absolute basis, the Strategy had gains in one of the 11 sectors in which it was invested for the quarter: the health care sector. The IT, financials and materials sectors, meanwhile, were the main detractors. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, ClearBridge Large Cap Growth ESG Strategy mentioned DexCom, Inc. (NASDAQ:DXCM) and explained its insights for the company. Founded in 1999, DexCom, Inc. (NASDAQ:DXCM) is a San Diego, California-based medical device company with a $35.1 billion market capitalization. DexCom, Inc. (NASDAQ:DXCM) delivered a -33.30% return since the beginning of the year, while its 12-month returns are down by -31.64%. The stock closed at $89.54 per share on August 04, 2022.

Here is what ClearBridge Large Cap Growth ESG Strategy has to say about DexCom, Inc. (NASDAQ:DXCM) in its Q2 2022 investor letter: 

“Multiple compression has also hurt higher growth health care companies like DexCom (NASDAQ:DXCM), despite its strong fundamentals. We continue to build out the position as we gain greater visibility on the catalysts of accelerating uptake in Type 2 diabetes patients and the launch of its G7 continuous glucose monitor in the U.S. and Europe. DexCom was hurt in the quarter by market speculation that it would acquire a diabetes pump provider, which would be outside of its core competency.”

national-cancer-institute-GcrSgHDrniY-unsplash

Our calculations show that DexCom, Inc. (NASDAQ:DXCM) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. DexCom, Inc. (NASDAQ:DXCM) was in 58 hedge fund portfolios at the end of the second quarter of 2022, compared to 71 funds in the previous quarter. DexCom, Inc. (NASDAQ:DXCM) delivered a -5.57% return in the past 3 months.

In April 2022, we also shared another hedge fund’s views on DexCom, Inc. (NASDAQ:DXCM) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

Disclosure: None. This article is originally published at Insider Monkey.