Castle Biosciences (NASDAQ:CSTL) Cut to "Sell" at Wall Street Zen

Key Points

• Castle Biosciences was downgraded to “sell” by Wall Street Zen, even though other analysts remain more positive. MarketBeat says the stock still has a consensus rating of “Moderate Buy” with an average target price of $46.00.
• The company’s latest earnings met EPS expectations but beat on revenue, reporting EPS of -$0.49 in line with estimates and revenue of $84.23 million versus the expected $79.23 million.
• Insiders have been selling shares in recent months, including CEO Derek J. Maetzold and Director G. Bradley Cole. In total, insiders sold 74,575 shares worth about $1.95 million over the last three months.

Castle Biosciences (NASDAQ:CSTL - Get Free Report) was downgraded by analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a report issued on Saturday.

A number of other brokerages have also recently issued reports on CSTL. Guggenheim increased their target price on shares of Castle Biosciences from $43.00 to $47.00 and gave the company a "buy" rating in a report on Monday, January 26th. Zacks Research raised shares of Castle Biosciences from a "hold" rating to a "strong-buy" rating in a research note on Monday, April 27th. Weiss Ratings cut shares of Castle Biosciences from a "sell (d)" rating to a "sell (d-)" rating in a research note on Thursday. Lake Street Capital raised their price objective on shares of Castle Biosciences from $35.00 to $52.00 and gave the stock a "buy" rating in a research note on Monday, January 12th. Finally, KeyCorp reissued an "overweight" rating and set a $50.00 price objective on shares of Castle Biosciences in a research note on Thursday, January 29th. One analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $46.00.

Castle Biosciences Trading Up 3.1%

Shares of Castle Biosciences stock opened at $19.83 on Friday. Castle Biosciences has a 12-month low of $14.59 and a 12-month high of $44.28. The company has a current ratio of 6.75, a quick ratio of 5.11 and a debt-to-equity ratio of 0.02. The stock has a market cap of $601.44 million, a PE ratio of -45.07 and a beta of 1.11. The company has a 50-day moving average of $25.41 and a two-hundred day moving average of $32.15.

Castle Biosciences (NASDAQ:CSTL - Get Free Report) last issued its 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 company had revenue of $84.23 million during the quarter, compared to analysts' expectations of $79.23 million. On average, research analysts anticipate that Castle Biosciences will post -1.4 EPS for the current fiscal year.

Insider Activity

In related news, insider Derek J. Maetzold sold 3,622 shares of the firm's stock in a transaction that occurred on Tuesday, April 21st. The shares were sold at an average price of $25.10, for a total transaction of $90,912.20. Following the sale, the insider owned 2,502 shares in the company, valued at approximately $62,800.20. This trade represents a 59.14% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director G Bradley Cole sold 7,403 shares of the firm's stock in a transaction that occurred 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 sale, the director owned 19,309 shares in the company, valued at approximately $549,727.23. This trade represents a 27.71% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 74,575 shares of company stock worth $1,948,344 in the last three months. 6.10% of the stock is owned by insiders.

Institutional Trading of Castle Biosciences

Several institutional investors have recently made changes to their positions in CSTL. Federated Hermes Inc. purchased a new stake in shares of Castle Biosciences during the 4th quarter valued at $26,000. Farther Finance Advisors LLC grew its stake in shares of Castle Biosciences by 139,100.0% during the 3rd quarter. Farther Finance Advisors LLC now owns 1,392 shares of the company's stock valued at $32,000 after buying an additional 1,391 shares during the period. State of Alaska Department of Revenue purchased a new stake in shares of Castle Biosciences during the 3rd quarter valued at $35,000. Kemnay Advisory Services Inc. purchased a new stake in shares of Castle Biosciences during the 4th quarter valued at $35,000. Finally, CWM LLC grew its stake in shares of Castle Biosciences by 80.6% during the 3rd quarter. CWM LLC now owns 1,911 shares of the company's stock valued at $44,000 after buying an additional 853 shares during the period. 92.60% of the stock is owned by hedge funds and other 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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