Castle Biosciences, Inc. (NASDAQ:CSTL) Given Average Rating of "Moderate Buy" by Analysts

Key Points

• Analyst consensus is “Moderate Buy” among 10 firms, with seven buy ratings, one strong buy, one hold and one sell. The average 12-month price target is $42, above the reported $32.32 opening price.
• Castle Biosciences exceeded quarterly expectations, reporting an adjusted loss of $0.07 per share versus the $0.41 consensus loss and revenue of $99.86 million versus estimates of $86.23 million. However, the company remains unprofitable, with a negative net margin of 5.43%.
• Institutional ownership is substantial at 92.6%, with major new investments from BlackRock and RTW Investments. Insiders sold 136,305 shares worth about $3.84 million over the past 90 days, though the transactions were made under pre-arranged trading plans.

Castle Biosciences, Inc. (NASDAQ:CSTL - Get Free Report) has been given an average rating of "Moderate Buy" by the ten research firms that are presently covering the company, Marketbeat.com reports. One equities research analyst has rated the stock with a sell recommendation, one has assigned a hold recommendation, seven have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12-month price objective among brokers that have issued a report on the stock in the last year is $42.00.

A number of research analysts recently issued reports on CSTL shares. Wall Street Zen raised shares of Castle Biosciences from a "sell" rating to a "hold" rating in a research report on Saturday, August 1st. KeyCorp set a $35.00 price objective on shares of Castle Biosciences in a report on Friday, May 29th. Zacks Research downgraded shares of Castle Biosciences from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, May 26th. Weiss Ratings upgraded shares of Castle Biosciences from a "sell (e+)" rating to a "sell (d-)" rating in a report on Friday, July 31st. Finally, Robert W. Baird set a $36.00 price target on Castle Biosciences in a research report on Friday, July 31st.

Castle Biosciences Price Performance

CSTL opened at $32.32 on Thursday. The company has a current ratio of 6.04, a quick ratio of 5.85 and a debt-to-equity ratio of 0.02. The company has a market cap of $987.38 million, a price-to-earnings ratio of -48.97 and a beta of 0.98. The stock has a fifty day simple moving average of $25.40 and a two-hundred day simple moving average of $25.52. Castle Biosciences has a 12-month low of $17.72 and a 12-month high of $44.28.

Castle Biosciences (NASDAQ:CSTL - Get Free Report) last announced its earnings results on Thursday, July 30th. The company reported ($0.07) EPS for the quarter, beating analysts' consensus estimates of ($0.41) by $0.34. The firm had revenue of $99.86 million for the quarter, compared to analysts' expectations of $86.23 million. Castle Biosciences had a negative net margin of 5.43% and a negative return on equity of 4.15%. Research analysts predict that Castle Biosciences will post -1.29 earnings per share for the current fiscal year.

Insider Activity at Castle Biosciences

In other news, insider Tobin W. Juvenal sold 17,310 shares of the firm's stock in a transaction on Friday, July 31st. The stock was sold at an average price of $29.31, for a total transaction of $507,356.10. Following the completion of the transaction, the insider directly owned 80,725 shares in the company, valued at $2,366,049.75. This trade represents a 17.66% decrease in their ownership of the stock. The sale 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, insider Derek J. Maetzold sold 20,356 shares of Castle Biosciences stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $31.11, for a total value of $633,275.16. Following the completion of the transaction, the insider directly owned 21,479 shares of the company's stock, valued at approximately $668,211.69. This represents a 48.66% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 136,305 shares of company stock valued at $3,841,714 in the last 90 days. Corporate insiders own 6.10% of the company's stock.

Institutional Trading of Castle Biosciences

A number of institutional investors and hedge funds have recently bought and sold shares of the company. BlackRock Inc. bought a new stake in shares of Castle Biosciences during the second quarter valued at approximately $78,513,000. RTW Investments LP purchased a new position in Castle Biosciences in the 4th quarter worth approximately $82,283,000. Summit Partners Public Asset Management LLC lifted its position in Castle Biosciences by 164.7% in the 4th quarter. Summit Partners Public Asset Management LLC now owns 1,058,725 shares of the company's stock valued at $41,184,000 after acquiring an additional 658,725 shares in the last quarter. Jefferies Financial Group Inc. bought a new position in Castle Biosciences in the 2nd quarter valued at approximately $15,440,000. Finally, AIGH Capital Management LLC purchased a new stake in Castle Biosciences during the 2nd quarter valued at $13,001,000. 92.60% of the stock is currently owned by institutional investors.

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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