Why Are These Biotechs Exploding Higher Today?

DexCom, Inc. (NASDAQ:DXCM) is up after releasing strong preliminary third quarter results. For its quarter, the continuous glucose monitoring system company estimates that its revenues will be $105 million versus expectations of $97.7 million.

From the press release:

Demand for our G5 Mobile system has been overwhelming and our pipeline of new patient opportunities is larger than it has ever been. We have worked diligently to fulfill demand by new patients, we have commenced shipping upgrades to existing patients and we expect to complete the upgrade cycle before the end of 2015.

Given the new products and healthy growth, investors are right to be excited. Analysts, incidentally, are too. Following the release, Sterne Agee CRT upgraded DexCom to ‘Buy’ from ‘Neutral’ with a $90 price target, while Leerink Swann upgraded the company to ‘Outperform’ from ‘Market Perform’, with a $100 price target.

According to our data, hedge funds were bullish on DexCom, Inc. (NASDAQ:DXCM) in the second quarter. A total of 25 funds reported stakes worth $348.52 million (representing 5.50% of the float) in the latest round of 13F filings, up from 22 funds and $289.32 million in holdings respectively a quarter earlier. Donald Chiboucis‘ Columbus Circle Investors owns 906,909 shares, while Israel Englander’s Millenium Management owns 498,622 shares. Jerome Pfund and Micahel Sjostrom’s Sectoral Asset Management owns 398,158 shares.

Disclosure: None