Castle Biosciences (NASDAQ:CSTL) Shares Gap Up After Better-Than-Expected Earnings

Key Points

• Castle Biosciences' stock price saw a significant increase, opening at $19.85 after closing at $15.32, following a strong earnings report.
• The company reported $0.15 earnings per share (EPS), surpassing expectations, with revenue of $86.18 million for the quarter compared to the estimate of $71.53 million.
• A consensus of eight analysts currently rates Castle Biosciences stock as a "Buy," with a revised average price target of $37.00.

Castle Biosciences, Inc. (NASDAQ:CSTL - Get Free Report) gapped up prior to trading on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $15.32, but opened at $19.85. Castle Biosciences shares last traded at $21.06, with a volume of 249,752 shares changing hands.

The company reported $0.15 EPS for the quarter, topping analysts' consensus estimates of ($0.51) by $0.66. Castle Biosciences had a positive return on equity of 2.37% and a negative net margin of 2.73%. The company had revenue of $86.18 million for the quarter, compared to the consensus estimate of $71.53 million.

Wall Street Analysts Forecast Growth

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

Institutional Trading of Castle Biosciences

Institutional investors have recently added to or reduced their stakes in the business. Wellington Management Group LLP bought a new position in Castle Biosciences during the 4th quarter worth $19,244,000. Nuveen LLC acquired a new position in shares of Castle Biosciences during the first quarter valued at $13,450,000. Park West Asset Management LLC bought a new position in shares of Castle Biosciences during the first quarter worth about $11,141,000. Millennium Management LLC increased its holdings in shares of Castle Biosciences by 290.5% in the 4th quarter. Millennium Management LLC now owns 548,809 shares of the company's stock worth $14,626,000 after acquiring an additional 408,272 shares during the period. Finally, Braidwell LP bought a new stake in Castle Biosciences in the 1st quarter valued at about $7,312,000. Institutional investors own 92.60% of the company's stock.

Castle Biosciences Trading Down 0.6%

The firm's 50-day simple moving average is $18.23 and its 200 day simple moving average is $20.38. The stock has a market cap of $570.05 million, a P/E ratio of -56.14 and a beta of 1.09. The company has a current ratio of 6.85, a quick ratio of 9.19 and a debt-to-equity ratio of 0.02.

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.