Castle Biosciences, Inc. (NASDAQ:CSTL) Receives Consensus Rating of "Moderate Buy" from Brokerages

Key Points

• Analysts maintain a “Moderate Buy” consensus on Castle Biosciences, with seven buys, one strong buy, one hold and one sell among 10 analysts. The average 12-month price target is $42.00, above the reported $32.33 share price.
• Castle Biosciences beat quarterly expectations, reporting an adjusted loss of $0.07 per share versus the $0.41 consensus loss and revenue of $99.86 million versus estimates of $86.23 million.
• Institutional ownership is high at 92.60%, with BlackRock and other investors adding positions, while insiders sold 184,345 shares worth approximately $5.5 million over the past 90 days.

Castle Biosciences, Inc. (NASDAQ:CSTL - Get Free Report) has been given an average rating of "Moderate Buy" by the ten analysts that are covering the stock, MarketBeat Ratings reports. One analyst has rated the stock with a sell recommendation, one has issued a hold recommendation, seven have assigned a buy recommendation and one has issued a strong buy recommendation on the company. The average 1-year price target among brokers that have issued ratings on the stock in the last year is $42.00.

Several brokerages have weighed in on CSTL. Weiss Ratings raised shares of Castle Biosciences from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Friday, July 31st. Roth Capital assumed coverage on shares of Castle Biosciences in a research report on Wednesday, June 24th. They issued a "buy" rating and a $40.00 price objective on the stock. BTIG Research upped their price objective on shares of Castle Biosciences from $40.00 to $44.00 and gave the company a "buy" rating in a research note on Monday, August 3rd. Zacks Research lowered shares of Castle Biosciences from a "strong-buy" rating to a "hold" rating in a report on Tuesday, May 26th. Finally, Robert W. Baird set a $36.00 target price on Castle Biosciences in a research note on Friday, July 31st.

Castle Biosciences Stock Performance

Shares of CSTL stock opened at $32.33 on Monday. The firm has a market cap of $987.68 million, a P/E ratio of -48.98 and a beta of 0.99. The business has a 50-day moving average price of $29.14 and a two-hundred day moving average price of $25.49. The company has a quick ratio of 5.85, a current ratio of 6.04 and a debt-to-equity ratio of 0.02. Castle Biosciences has a 12-month low of $17.72 and a 12-month high of $44.28.

Castle Biosciences (NASDAQ:CSTL - Get Free Report) last released its earnings results on Thursday, July 30th. The company reported ($0.07) earnings per share for the quarter, beating analysts' consensus estimates of ($0.41) by $0.34. Castle Biosciences had a negative return on equity of 4.15% and a negative net margin of 5.43%.The company had revenue of $99.86 million during the quarter, compared to analyst estimates of $86.23 million. Equities analysts anticipate that Castle Biosciences will post -1.29 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, insider Derek J. Maetzold sold 12,428 shares of Castle Biosciences stock in a transaction that occurred on Friday, August 28th. The stock was sold at an average price of $33.20, for a total value of $412,609.60. Following the sale, the insider directly owned 21,479 shares in the company, valued at approximately $713,102.80. This trade represents a 36.65% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Kristen Oelschlager sold 12,384 shares of the business's stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $34.42, for a total value of $426,257.28. Following the transaction, the chief operating officer directly owned 72,649 shares in the company, valued at $2,500,578.58. This trade represents a 14.56% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 184,345 shares of company stock worth $5,526,707. 6.10% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in CSTL. Advisors Capital Management LLC bought a new position in Castle Biosciences in the second quarter worth $5,681,000. BlackRock Inc. bought a new stake in shares of Castle Biosciences during the 2nd quarter valued at $78,513,000. Quantinno Capital Management LP boosted its holdings in shares of Castle Biosciences by 387.3% during the 1st quarter. Quantinno Capital Management LP now owns 45,476 shares of the company's stock valued at $1,116,000 after buying an additional 36,144 shares in the last quarter. Summit Partners Public Asset Management LLC grew its position in shares of Castle Biosciences by 164.7% in the 4th quarter. Summit Partners Public Asset Management LLC now owns 1,058,725 shares of the company's stock worth $41,184,000 after buying an additional 658,725 shares during the period. Finally, SummitTX Capital L.P. grew its position in shares of Castle Biosciences by 285.0% in the 1st quarter. SummitTX Capital L.P. now owns 67,033 shares of the company's stock worth $1,646,000 after buying an additional 49,623 shares during the period. Institutional investors own 92.60% of the company's stock.

Castle Biosciences Company Profile

Castle Biosciences, Inc is a molecular diagnostics company that develops and commercializes tests designed to help physicians make more informed decisions about cancer diagnosis and treatment. Its products use genomic and molecular information to assess disease characteristics, patient risk and likely outcomes.

The company's portfolio includes DecisionDx-Melanoma, which helps assess the risk of metastasis in patients with cutaneous melanoma; DecisionDx-SCC, which evaluates metastatic risk in certain patients with cutaneous squamous cell carcinoma; and MyPath Melanoma, which assists in distinguishing benign from malignant melanocytic lesions.

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