Goldman Sachs Stock Portfolio: Top 5 Large-Cap Stock Picks

4. DexCom, Inc. (NASDAQ:DXCM)

Number of Hedge Fund Holders: 56

DexCom, Inc. (NASDAQ:DXCM) is a California-based company that focuses on the design, development, and commercialization of continuous glucose monitoring systems in the United States and internationally. On October 27, DexCom, Inc. (NASDAQ:DXCM) reported its Q3 results, posting a non-GAAP EPS of $0.28 and a revenue of $769.6 million, outperforming market estimates by $0.04 and $18.56 million, respectively. 

Securities filings for the second quarter of 2022 reveal that Goldman Sachs had 32.7 million shares of DexCom, Inc. (NASDAQ:DXCM) in its portfolio, worth $3 billion and representing 0.67% of the total holdings. 

Cowen analyst Joshua Jennings on October 28 raised the price target on DexCom, Inc. (NASDAQ:DXCM) to $114 from $85 and reiterated an Outperform rating on the shares. The analyst noted DexCom, Inc. (NASDAQ:DXCM) increased the lower end of its full-year sales guidance and reiterated its targets for operating margin and EBITDA.

Among the hedge funds tracked by Insider Monkey, 56 funds reported owning stakes worth $1.10 billion in DexCom, Inc. (NASDAQ:DXCM) at the end of June 2022, compared to 58 funds in the prior quarter worth $1.4 billion. Ken Griffin’s Citadel Investment Group is the leading position holder in the company, with more than 3 million shares valued at $229 million. 

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.”