BTIG Research Has Lowered Expectations for Castle Biosciences (NASDAQ:CSTL) Stock Price

Key Points

• BTIG Research cut its price target on Castle Biosciences from $50 to $40, while keeping a buy rating. The new target still implies significant upside from the current share price.
• Analyst sentiment remains broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $44.57. Multiple firms have recently maintained or upgraded their outlooks, though some also lowered targets.
• Castle Biosciences posted mixed quarterly results: it met EPS expectations at a loss of $0.49 per share and beat revenue estimates with $84.23 million in sales. The stock was trading around $18.63, well below its 52-week high, and insiders recently sold shares.

Castle Biosciences (NASDAQ:CSTL - Get Free Report) had its price target cut by stock analysts at BTIG Research from $50.00 to $40.00 in a report issued on Wednesday,Benzinga reports. The brokerage currently has a "buy" rating on the stock. BTIG Research's target price points to a potential upside of 114.71% from the company's current price.

Other research analysts have also issued research reports about the stock. Canaccord Genuity Group cut their price target on shares of Castle Biosciences from $50.00 to $40.00 and set a "buy" rating on the stock in a research note on Monday, April 20th. Morgan Stanley upgraded shares of Castle Biosciences to a "buy" rating in a research note on Monday, March 2nd. Weiss Ratings lowered shares of Castle Biosciences from a "sell (d)" rating to a "sell (d-)" rating in a research note on Thursday, May 7th. Zacks Research upgraded shares of Castle Biosciences from a "hold" rating to a "strong-buy" rating in a research note on Monday, April 27th. Finally, Guggenheim upped their price target on shares of Castle Biosciences from $43.00 to $47.00 and gave the company a "buy" rating in a research note on Monday, January 26th. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $44.57.

Castle Biosciences Trading Down 2.2%

Shares of Castle Biosciences stock opened at $18.63 on Wednesday. The company has a current ratio of 6.75, a quick ratio of 6.53 and a debt-to-equity ratio of 0.02. Castle Biosciences has a 12-month low of $14.59 and a 12-month high of $44.28. The firm has a market capitalization of $565.05 million, a price-to-earnings ratio of -42.34 and a beta of 1.11. The firm's 50 day simple moving average is $24.72 and its two-hundred day simple moving average is $32.06.

Castle Biosciences (NASDAQ:CSTL - Get Free Report) last issued its quarterly earnings results on Wednesday, May 6th. The company reported ($0.49) earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of ($0.49). Castle Biosciences had a negative net margin of 3.78% and a negative return on equity of 2.77%. The business had revenue of $84.23 million for the quarter, compared to analyst estimates of $79.23 million. Analysts predict that Castle Biosciences will post -1.4 EPS for the current year.

Insider Buying and Selling at Castle Biosciences

In other news, insider Derek J. Maetzold sold 3,622 shares of the stock in a transaction on Thursday, May 7th. The shares were sold at an average price of $22.15, for a total value of $80,227.30. Following the sale, the insider owned 2,224 shares in the company, valued at $49,261.60. This represents a 61.96% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director G Bradley Cole sold 7,403 shares of the stock in a transaction on Thursday, March 5th. The stock was sold at an average price of $28.47, for a total transaction of $210,763.41. Following the completion of the sale, the director owned 19,309 shares in the company, valued at $549,727.23. The trade was a 27.71% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 84,411 shares of company stock worth $2,166,211 over the last ninety days. 6.10% of the stock is owned by insiders.

Institutional Trading of Castle Biosciences

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. increased its stake in shares of Castle Biosciences by 1.3% in the fourth quarter. Vanguard Group Inc. now owns 2,199,829 shares of the company's stock worth $85,573,000 after acquiring an additional 27,511 shares during the period. RTW Investments LP purchased a new stake in Castle Biosciences during the fourth quarter worth $82,283,000. Principal Financial Group Inc. boosted its holdings in Castle Biosciences by 0.7% during the fourth quarter. Principal Financial Group Inc. now owns 1,807,644 shares of the company's stock worth $70,317,000 after buying an additional 13,289 shares in the last quarter. Portolan Capital Management LLC boosted its holdings in Castle Biosciences by 1.7% during the third quarter. Portolan Capital Management LLC now owns 1,515,111 shares of the company's stock worth $34,499,000 after buying an additional 25,539 shares in the last quarter. Finally, Dimensional Fund Advisors LP boosted its holdings in Castle Biosciences by 7.0% during the third quarter. Dimensional Fund Advisors LP now owns 1,474,089 shares of the company's stock worth $33,564,000 after buying an additional 96,084 shares in the last quarter. Institutional investors and hedge funds own 92.60% of the company's stock.

About Castle Biosciences

Castle Biosciences, Inc is a molecular diagnostics company specializing in the development and commercialization of prognostic and diagnostic tests for patients with dermatologic conditions. The company's proprietary portfolio of genomic assays is designed to improve risk assessment and guide clinical decision-making for individuals with skin cancers and other skin-related diseases. By combining genomic data with advanced statistical algorithms, Castle Biosciences seeks to provide actionable insights that help physicians tailor treatment plans and monitoring strategies.

The company's flagship test, DecisionDx-Melanoma, evaluates the probability of metastasis in patients diagnosed with cutaneous melanoma, supporting more personalized surveillance and therapeutic approaches.

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