Veracyte (NASDAQ:VCYT) Stock Gets Price Target Reduction from UBS Group

Key Points

• UBS cut its Veracyte price target from $65 to $35 but maintained a Buy rating; the new target implies 35% upside from the stock’s current price.
• Analyst views are mixed: the consensus rating is Hold, with an average price target of $48.40, as several firms also lowered targets or ratings.
• Veracyte reported quarterly EPS of $0.51, topping the $0.41 consensus estimate, while revenue rose 15.1% year over year to $151.75 million.

Veracyte (NASDAQ:VCYT - Get Free Report) had its price target lowered by equities research analysts at UBS Group from $65.00 to $35.00 in a research report issued on Monday, Benzinga reports. The firm presently has a "buy" rating on the biotechnology company's stock. UBS Group's target price would indicate a potential upside of 35.03% from the stock's current price.

Several other equities research analysts also recently commented on the company. Canaccord Genuity Group dropped their target price on Veracyte from $60.00 to $50.00 and set a "hold" rating on the stock in a report on Monday, August 3rd. Leerink Partners cut Veracyte from an "outperform" rating to a "market perform" rating and decreased their price target for the stock from $55.00 to $35.00 in a research note on Thursday. Piper Sandler dropped their price target on shares of Veracyte from $66.00 to $54.00 and set an "overweight" rating on the stock in a research report on Tuesday, August 4th. Stephens decreased their target price on shares of Veracyte from $68.00 to $55.00 and set an "overweight" rating for the company in a report on Tuesday, August 4th. Finally, Weiss Ratings cut shares of Veracyte from a "hold (c+)" rating to a "hold (c)" rating in a report on Thursday, September 24th. Six equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $48.40.

Veracyte Stock Performance

NASDAQ:VCYT traded up $1.76 during trading hours on Monday, hitting $25.92. The company's stock had a trading volume of 5,061,822 shares, compared to its average volume of 1,246,710. Veracyte has a 52-week low of $21.91 and a 52-week high of $60.91. The company has a market capitalization of $2.08 billion, a PE ratio of 16.72 and a beta of 1.98. The business's 50-day moving average is $44.07 and its two-hundred day moving average is $42.87.

Veracyte (NASDAQ:VCYT - Get Free Report) last released its quarterly earnings results on Wednesday, November 4th. The biotechnology company reported $0.51 EPS for the quarter, beating the consensus estimate of $0.41 by $0.10. Veracyte had a net margin of 21.80% and a return on equity of 8.99%. The business had revenue of $151.75 million for the quarter, compared to analyst estimates of $147.13 million. During the same period in the prior year, the business earned $0.51 earnings per share. The company's quarterly revenue was up 15.1% on a year-over-year basis. As a group, analysts predict that Veracyte will post 1.32 EPS for the current fiscal year.

Insider Transactions at Veracyte

In other Veracyte news, insider John Leite sold 4,015 shares of the business's stock in a transaction dated Monday, September 21st. The stock was sold at an average price of $40.00, for a total transaction of $160,600.00. Following the completion of the sale, the insider directly owned 124,329 shares of the company's stock, valued at approximately $4,973,160. The trade was a 3.13% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Jens Holstein sold 7,500 shares of Veracyte stock in a transaction on Tuesday, October 27th. The stock was sold at an average price of $50.00, for a total value of $375,000.00. Following the sale, the director directly owned 27,471 shares of the company's stock, valued at approximately $1,373,550. This trade represents a 21.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 62,609 shares of company stock worth $2,858,904. 1.60% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the stock. Bessemer Group Inc. grew its stake in shares of Veracyte by 19,391.1% in the third quarter. Bessemer Group Inc. now owns 96,091 shares of the biotechnology company's stock valued at $4,423,000 after acquiring an additional 95,598 shares in the last quarter. Virtus Advisers LLC raised its stake in shares of Veracyte by 20.4% during the third quarter. Virtus Advisers LLC now owns 45,231 shares of the biotechnology company's stock valued at $2,082,000 after acquiring an additional 7,657 shares during the last quarter. William Blair Investment Management LLC boosted its holdings in Veracyte by 89.2% in the third quarter. William Blair Investment Management LLC now owns 2,709,212 shares of the biotechnology company's stock valued at $124,732,000 after acquiring an additional 1,277,616 shares during the last quarter. Allworth Financial LP raised its position in shares of Veracyte by 81.4% in the 3rd quarter. Allworth Financial LP now owns 1,533 shares of the biotechnology company's stock worth $71,000 after acquiring an additional 688 shares in the last quarter. Finally, Russell Investments Group Ltd. lifted its position in shares of Veracyte by 7.8% during the 3rd quarter. Russell Investments Group Ltd. now owns 97,813 shares of the biotechnology company's stock valued at $4,503,000 after acquiring an additional 7,088 shares during the period.

Veracyte Company Profile

Veracyte, Inc is a genomic diagnostics company that develops tests to help clinicians diagnose disease and guide treatment decisions, with a focus on cancer and other complex conditions. Its tests analyze biological samples to provide information that can help distinguish between conditions and assess disease risk.

The company's portfolio includes Afirma for thyroid nodule assessment, Decipher for prostate cancer, Prosigna for breast cancer, and Percepta for lung cancer. Veracyte also offers Envisia, a genomic test that supports the diagnosis of idiopathic pulmonary fibrosis and other forms of interstitial lung disease.

Founded in 2008 and headquartered in South San Francisco, California, Veracyte serves clinicians and patients in the United States and makes certain products available in international markets.

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