Castle Biosciences (NASDAQ:CSTL) Issues Quarterly Earnings Results

Key Points

• Castle Biosciences (NASDAQ:CSTL) reported an earnings per share (EPS) of $0.15 for the quarter, significantly exceeding analysts' expectations by $0.59.
• The company's debt-to-equity ratio is very low at 0.02, indicating strong financial stability, while institutional investors own 92.60% of Castle Biosciences' stock.
• Equities analysts have decreased their price targets for CSTL, with the average consensus price target now at $37.00 following several reports rating the stock as "buy."

Castle Biosciences (NASDAQ:CSTL - Get Free Report) posted its quarterly earnings data on Monday. The company reported $0.15 EPS for the quarter, topping analysts' consensus estimates of ($0.51) by $0.66, Zacks reports. Castle Biosciences had a negative net margin of 2.73% and a positive return on equity of 2.37%. The company had revenue of $86.18 million during the quarter, compared to the consensus estimate of $71.53 million. Castle Biosciences updated its FY 2025 guidance to EPS.

Castle Biosciences Price Performance

Shares of NASDAQ CSTL traded down $0.20 during midday trading on Friday, reaching $19.45. The company's stock had a trading volume of 265,182 shares, compared to its average volume of 462,072. The company has a debt-to-equity ratio of 0.02, a quick ratio of 9.19 and a current ratio of 6.85. Castle Biosciences has a fifty-two week low of $14.59 and a fifty-two week high of $35.84. The business's 50 day moving average price is $18.23 and its two-hundred day moving average price is $20.38. The company has a market cap of $564.27 million, a P/E ratio of -55.56 and a beta of 1.09.

Institutional Investors Weigh In On Castle Biosciences

Hedge funds and other institutional investors have recently made changes to their positions in the business. AQR Capital Management LLC raised its position in shares of Castle Biosciences by 548.9% in the first quarter. AQR Capital Management LLC now owns 137,022 shares of the company's stock valued at $2,743,000 after buying an additional 115,907 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in shares of Castle Biosciences by 4.4% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 15,441 shares of the company's stock valued at $309,000 after buying an additional 655 shares in the last quarter. Amundi raised its position in shares of Castle Biosciences by 15,811.5% in the first quarter. Amundi now owns 4,137 shares of the company's stock valued at $79,000 after buying an additional 4,111 shares in the last quarter. Finally, Jones Financial Companies Lllp raised its position in shares of Castle Biosciences by 10,592.0% in the first quarter. Jones Financial Companies Lllp now owns 2,673 shares of the company's stock valued at $54,000 after buying an additional 2,648 shares in the last quarter. 92.60% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on CSTL shares. Canaccord Genuity Group cut their target price on shares of Castle Biosciences from $42.00 to $37.00 and set a "buy" rating for the company in a research note on Tuesday, May 6th. Scotiabank cut their target price on shares of Castle Biosciences from $44.00 to $40.00 and set a "sector outperform" rating for the company in a research note on Wednesday, May 21st. Finally, Lake Street Capital cut their price objective on shares of Castle Biosciences from $40.00 to $35.00 and set a "buy" rating for the company in a research report on Tuesday, May 6th. Eight analysts have rated the stock with a buy rating, According to MarketBeat, the stock presently has an average rating of "Buy" and a consensus target price of $37.00.

About Castle Biosciences

Castle Biosciences, Inc, a molecular diagnostics company, provides testing solutions for the diagnosis and treatment of dermatologic cancers, Barrett's esophagus, uveal melanoma, and mental health conditions. It offers DecisionDx-Melanoma, a risk stratification gene expression profile (GEP) test to identify the risk of metastasis for patients diagnosed with invasive cutaneous melanoma; DecisionDx-SCC, a proprietary risk stratification GEP test for patients with cutaneous squamous cell carcinoma; MyPath Melanoma, a test used for patients with difficult-to-diagnose melanocytic lesions; and TissueCypher, a spatial omics test to predict future development of high-grade dysplasia and/or esophageal cancer in patients with non-dysplastic, indefinite dysplasia, or low-grade dysplasia Barrett's esophagus.