Insiders Are Dumping These 5 Healthcare Stocks

2. DexCom Inc (NASDAQ:DXCM)

Number of Hedge Fund Investors: 69

Glucose monitoring systems company DexCom Inc (NASDAQ:DXCM) is one of the healthcare stocks insiders are selling. Sadie Stern, who is the Executive Vice President and Chief Human Resources Officer at DexCom Inc (NASDAQ:DXCM), on March 25 sold 4,137 shares of DexCom Inc (NASDAQ:DXCM) at $140.00 per share. Since then the stock  price is almost flat.

Brown Capital Management Mid Company Fund stated the following regarding DexCom, Inc. (NASDAQ:DXCM) in its fourth quarter 2023 investor letter:

“The virtues of our patient, low-turnover approach were evident during the fourth quarter. As discussed in our last commentary, clinical-trial results from popular GLP-1 (glucagon-like peptide-1) obesity drugs showed that they lower the risk of diabetes, cardiovascular disease and other adverse health outcomes. These results were notable and as they emerged, we conducted additional research into GLP-1 drugs, for two reasons: first, to better understand the long-term efficacy of these drugs; and second, to determine the extent of the threat these drugs pose to some of our portfolio holdings.

Conversely, when the GLP-1 clinical trial data came out, investors immediately abandoned holdings like DexCom, Inc. (NASDAQ:DXCM), which manufactures and markets continuous glucose monitors, or CGMs, used to track the blood sugar of people with diabetes. Investors feared that the company’s market opportunity would shrink dramatically as the adoption of GLP-1 drugs rises. Beginning in August, after the first of the trial results came public, Dexcom declined nearly 30% peak to trough, and stock prices of many other medical device companies dropped well over 20%. However, since bottoming in mid-October, Dexcom’s stock price has rallied more than 60%. In fact, Dexcom was a top contributor during the fourth quarter, rising more than 30% and managed to close up 10% for the year after being down double-digits at one point…” (Click here to read the full text)