Is DexCom, Inc. (DXCM) A Good Stock To Buy?

Consequently, key hedge funds have jumped into DexCom, Inc. (NASDAQ:DXCM) headfirst. LMR Partners, managed by Ben Levine, Andrew Manuel and Stefan Renold, created the biggest position in DexCom, Inc. (NASDAQ:DXCM). LMR Partners had $6.9 million invested in the company at the end of the quarter. Noam Gottesman’s GLG Partners also made a $2.8 million investment in the stock during the quarter. The other funds with brand new DXCM positions are Matthew Tewksbury’s Stevens Capital Management, Simon Sadler’s Segantii Capital, and Ken Griffin’s Citadel Investment Group.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as DexCom, Inc. (NASDAQ:DXCM) but similarly valued. These stocks are New Oriental Education & Tech Grp (ADR) (NYSE:EDU), Hyatt Hotels Corporation (NYSE:H), FactSet Research Systems Inc. (NYSE:FDS), and Nordstrom, Inc. (NYSE:JWN). This group of stocks’ market valuations match DXCM’s market valuation.

As you can see these stocks had an average of 22 hedge funds with bullish positions and the average amount invested in these stocks was $286 million. That figure was $300 million in DXCM’s case. Nordstrom, Inc. (NYSE:JWN) is the most popular stock in this table. On the other hand FactSet Research Systems Inc. (NYSE:FDS) is the least popular one with only 16 bullish hedge fund positions. DexCom, Inc. (NASDAQ:DXCM) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard JWN might be a better candidate to consider a long position in.

Disclosure: None