Castle Biosciences (NASDAQ:CSTL) Upgraded by Zacks Research to Strong-Buy Rating

Key Points

• Zacks Research upgraded Castle Biosciences (NASDAQ:CSTL) from a "hold" rating to a "strong-buy" rating, with several analysts also positive on the stock despite some differing opinions.
• The company's recent quarterly earnings topped expectations with $0.15 EPS reported against a consensus estimate of ($0.51), along with revenue surpassing predictions at $86.18 million.
• Insider Derek J. Maetzold sold 1,339 shares of CSTL, while institutional investors have shown increasing interest, owning approximately 92.60% of the stock.

Castle Biosciences (NASDAQ:CSTL - Get Free Report) was upgraded by equities researchers at Zacks Research from a "hold" rating to a "strong-buy" rating in a research note issued to investors on Monday,Zacks.com reports.

Several other research analysts have also recently commented on CSTL. Weiss Ratings reiterated a "sell (e+)" rating on shares of Castle Biosciences in a report on Wednesday, October 8th. Wall Street Zen upgraded shares of Castle Biosciences from a "sell" rating to a "hold" rating in a report on Sunday, August 10th. Finally, Canaccord Genuity Group reiterated a "buy" rating and issued a $37.00 target price on shares of Castle Biosciences in a report on Tuesday, September 9th. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $36.57.

Castle Biosciences Stock Performance

Shares of CSTL opened at $23.40 on Monday. The firm's 50 day moving average is $22.46 and its 200-day moving average is $19.81. The stock has a market capitalization of $678.83 million, a P/E ratio of -66.86 and a beta of 1.13. The company has a debt-to-equity ratio of 0.02, a current ratio of 6.85 and a quick ratio of 6.69. Castle Biosciences has a 12-month low of $14.59 and a 12-month high of $35.84.

Castle Biosciences (NASDAQ:CSTL - Get Free Report) last announced its quarterly earnings data on Monday, August 4th. The company reported $0.15 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.51) by $0.66. The company had revenue of $86.18 million for the quarter, compared to analysts' expectations of $71.53 million. Castle Biosciences had a negative net margin of 2.73% and a positive return on equity of 2.37%. Castle Biosciences has set its FY 2025 guidance at EPS. Equities research analysts anticipate that Castle Biosciences will post 0.44 EPS for the current fiscal year.

Insider Activity at Castle Biosciences

In related news, insider Derek J. Maetzold sold 1,339 shares of the firm's stock in a transaction that occurred on Wednesday, September 17th. The shares were sold at an average price of $21.97, for a total transaction of $29,417.83. Following the completion of the sale, the insider directly owned 65,666 shares in the company, valued at approximately $1,442,682.02. This trade represents a 2.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Corporate insiders own 7.20% of the company's stock.

Institutional Trading of Castle Biosciences

Institutional investors have recently made changes to their positions in the stock. Farther Finance Advisors LLC boosted its holdings in shares of Castle Biosciences by 139,100.0% during the third quarter. Farther Finance Advisors LLC now owns 1,392 shares of the company's stock worth $32,000 after purchasing an additional 1,391 shares during the period. CWM LLC boosted its holdings 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 purchasing an additional 853 shares during the period. Harbour Investments Inc. acquired a new stake in shares of Castle Biosciences during the first quarter worth approximately $50,000. Jones Financial Companies Lllp boosted its holdings in shares of Castle Biosciences by 10,592.0% during the first quarter. Jones Financial Companies Lllp now owns 2,673 shares of the company's stock worth $54,000 after purchasing an additional 2,648 shares during the period. Finally, Tower Research Capital LLC TRC boosted its holdings in shares of Castle Biosciences by 256.9% during the second quarter. Tower Research Capital LLC TRC now owns 2,791 shares of the company's stock worth $57,000 after purchasing an additional 2,009 shares during the period. 92.60% of the stock is currently owned by institutional investors and hedge funds.

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.

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