Castle Biosciences (NASDAQ:CSTL) Shares Gap Down Following Analyst Downgrade

Key Points

• Shares gapped down — Castle Biosciences opened at $22.66 after closing at $24.75 following Robert W. Baird lowering its price target from $44 to $43; the stock traded around $22.34 and was down about 10.8% on heavy volume.
• Analyst consensus is cautiously positive — One analyst rates CSTL a Strong Buy, eight rate it Buy and one rates it Sell, giving an average rating of "Moderate Buy" and an average price target of $46.
• Insider selling and recent results — Insiders sold 74,575 shares (~$1.95M) in the last 90 days (insiders own 6.10%, institutions 92.60%); the company reported EPS of ($0.49) in-line with estimates and revenue of $84.23M, above expectations.

Shares of Castle Biosciences, Inc. (NASDAQ:CSTL - Get Free Report) gapped down prior to trading on Thursday after Robert W. Baird lowered their price target on the stock from $44.00 to $43.00. The stock had previously closed at $24.75, but opened at $22.66. Robert W. Baird currently has an outperform rating on the stock. Castle Biosciences shares last traded at $22.3350, with a volume of 189,299 shares trading hands.

Several other analysts have also commented on CSTL. Morgan Stanley raised Castle Biosciences to a "buy" rating in a research note on Monday, March 2nd. Canaccord Genuity Group cut their price objective on Castle Biosciences from $50.00 to $40.00 and set a "buy" rating for the company in a research report on Monday, April 20th. Guggenheim lifted their price objective on Castle Biosciences from $43.00 to $47.00 and gave the company a "buy" rating in a research report on Monday, January 26th. Lake Street Capital lifted their price objective on Castle Biosciences from $35.00 to $52.00 and gave the company a "buy" rating in a research report on Monday, January 12th. Finally, Zacks Research upgraded Castle Biosciences from a "hold" rating to a "strong-buy" rating in a research report on Monday, April 27th. One equities research 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 stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $46.00.

Insider Transactions at Castle Biosciences

In other news, insider Derek J. Maetzold sold 3,622 shares of the business's stock in a transaction on Tuesday, April 21st. The stock was sold at an average price of $25.10, for a total transaction of $90,912.20. Following the completion of the sale, the insider owned 2,502 shares in the company, valued at $62,800.20. The trade was a 59.14% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Tobin W. Juvenal sold 20,863 shares of the business's stock in a transaction on Thursday, March 12th. The stock was sold at an average price of $25.24, for a total value of $526,582.12. Following the sale, the insider owned 86,825 shares of the company's stock, valued at approximately $2,191,463. The trade was a 19.37% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 74,575 shares of company stock worth $1,948,344. Insiders own 6.10% of the company's stock.

Institutional Investors Weigh In On Castle Biosciences

A number of institutional investors and hedge funds have recently added to or reduced their stakes in CSTL. Federated Hermes Inc. acquired a new position in Castle Biosciences in the fourth quarter valued at about $26,000. Farther Finance Advisors LLC grew its stake in Castle Biosciences by 139,100.0% in the third quarter. Farther Finance Advisors LLC now owns 1,392 shares of the company's stock valued at $32,000 after acquiring an additional 1,391 shares during the period. State of Alaska Department of Revenue acquired a new position in shares of Castle Biosciences during the third quarter worth about $35,000. Kemnay Advisory Services Inc. acquired a new position in shares of Castle Biosciences during the fourth quarter worth about $35,000. Finally, CWM LLC boosted its position in shares of Castle Biosciences by 80.6% during the third quarter. CWM LLC now owns 1,911 shares of the company's stock worth $44,000 after buying an additional 853 shares during the period. Institutional investors own 92.60% of the company's stock.

Castle Biosciences Stock Down 10.8%

The firm has a market cap of $669.15 million, a P/E ratio of -26.01 and a beta of 1.11. The company has a quick ratio of 5.11, a current ratio of 5.26 and a debt-to-equity ratio of 0.02. The firm has a fifty day moving average of $25.62 and a 200-day moving average of $32.17.

Castle Biosciences (NASDAQ:CSTL - Get Free Report) last released its earnings results on Wednesday, May 6th. The company reported ($0.49) earnings per share (EPS) for the quarter, hitting the consensus estimate of ($0.49). Castle Biosciences had a negative return on equity of 0.89% and a negative net margin of 7.02%.The business had revenue of $84.23 million for the quarter, compared to analyst estimates of $79.23 million. On average, equities research analysts anticipate that Castle Biosciences, Inc. will post -1.4 earnings per share for the current year.

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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