DexCom $DXCM stock did a downtrend channelUptrend and downtrend channel patterns are technical analysis tools used to identify potential future price movements. They are formed by two parallel lines on a chart and can be u... breakout on March 2, 2023, after Medicare and Medicade announced expanded coverage of continuous glucose monitors.
The stock faces tough horizontal resistanceA horizontal resistance chart pattern is a type of chart which shows how price movement follows a certain pattern when price reaches a certain level. The pattern forms a resistance... levels and would need to break above $125.55 to clear them all.
The Centers for Medicare and Medicaid Services (CMS) revised its continuous glucose monitors policy to increase coverage for a larger group of diabetic patients. According to JPMorgan analyst Robbie Marcus, who noted that the change, which was meant to go into effect in April but came earlier than anticipated, has the potential to double the CGM market. As a result, Marcus sees an opportunity for DexCom. In an earlier version of the guidance, only people with diabetes who take daily insulin and those who have problematic hypoglycemia were eligible for CGM coverage. The update states that CMS will cover people with diabetes who are not being treated with insulin and people who have experienced at least one level 3 hypoglycemic event in addition to recurrent level 2 events.
DexCom’s G7 receives CMS approval, says Piper Sandler
DexCom was the top 2023 pick, according to Piper Sandler analyst Matt O’Brien, who reiterated an Overweight rating on the stock on February 13, 2023. DexCom reported that the CMS had approved G7’s coverage and that Medicare patients would now have immediate access to it. The analyst tells investors in a research note that the announcement is in line with or slightly ahead of the company’s own expectations, and that given the rate at which the company is securing coverage for G7, he would not be surprised to see additional upside from here.