Comerica Bank Sells 29,753 Shares of GeneDx Holdings Corp. $WGS

Key Points

• Comerica Bank sharply reduced its GeneDx stake in the fourth quarter, selling 29,753 shares and leaving it with just 765 shares worth about $100,000.
• GeneDx reported a Q1 earnings miss, posting a loss of $0.28 per share on revenue of $102.25 million, both below analyst expectations, and the company’s shares were trading far below their 50-day and 200-day averages.
• Insider activity was mixed but notable: Director Keith A. Meister bought more than 533,000 shares, while CEO Katherine Stueland sold 46,933 shares; meanwhile, analysts still rate the stock a consensus “Moderate Buy” despite recent price-target cuts and legal investigations.

Comerica Bank cut its holdings in GeneDx Holdings Corp. (NASDAQ:WGS - Free Report) by 97.5% in the 4th quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 765 shares of the company's stock after selling 29,753 shares during the period. Comerica Bank's holdings in GeneDx were worth $100,000 at the end of the most recent reporting period.

Other hedge funds have also added to or reduced their stakes in the company. Royal Bank of Canada increased its position in shares of GeneDx by 30.2% in the first quarter. Royal Bank of Canada now owns 29,479 shares of the company's stock valued at $2,611,000 after acquiring an additional 6,840 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of GeneDx by 6.3% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 7,641 shares of the company's stock valued at $677,000 after acquiring an additional 453 shares during the period. NewEdge Advisors LLC increased its position in shares of GeneDx by 270,700.0% in the first quarter. NewEdge Advisors LLC now owns 2,708 shares of the company's stock valued at $240,000 after acquiring an additional 2,707 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of GeneDx by 67.5% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 28,224 shares of the company's stock valued at $2,500,000 after acquiring an additional 11,375 shares during the period. Finally, Cetera Investment Advisers purchased a new position in shares of GeneDx in the second quarter valued at about $249,000. 61.72% of the stock is owned by institutional investors.

Insider Activity

In related news, Director Keith A. Meister purchased 533,758 shares of GeneDx stock in a transaction that occurred on Thursday, May 7th. The shares were bought at an average price of $37.86 per share, for a total transaction of $20,208,077.88. Following the completion of the transaction, the director directly owned 3,761,908 shares of the company's stock, valued at $142,425,836.88. This represents a 16.53% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Katherine Stueland sold 46,933 shares of the business's stock in a transaction dated Thursday, March 26th. The shares were sold at an average price of $63.17, for a total transaction of $2,964,757.61. Following the transaction, the chief executive officer owned 91,514 shares in the company, valued at $5,780,939.38. This represents a 33.90% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have purchased 1,725,941 shares of company stock worth $74,034,301 and have sold 104,028 shares worth $7,377,165. 29.60% of the stock is owned by insiders.

GeneDx Price Performance

Shares of NASDAQ WGS opened at $40.75 on Friday. GeneDx Holdings Corp. has a 1 year low of $32.21 and a 1 year high of $170.87. The company has a debt-to-equity ratio of 0.38, a current ratio of 3.09 and a quick ratio of 2.95. The company's 50-day moving average is $64.01 and its 200 day moving average is $102.00. The stock has a market capitalization of $1.21 billion, a P/E ratio of -15.21 and a beta of 2.06.

GeneDx (NASDAQ:WGS - Get Free Report) last announced its quarterly earnings results on Monday, May 4th. The company reported ($0.28) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.06) by ($0.22). GeneDx had a negative net margin of 17.58% and a positive return on equity of 9.15%. The company had revenue of $102.25 million for the quarter, compared to analysts' expectations of $112.46 million. During the same quarter in the prior year, the firm earned ($0.23) EPS. On average, sell-side analysts expect that GeneDx Holdings Corp. will post -1 earnings per share for the current year.

Key Stories Impacting GeneDx

Here are the key news stories impacting GeneDx this week:

• Positive Sentiment: Director Keith A. Meister kept buying shares, including 165,000 shares on May 13, 140,000 shares on May 14, and 46,273 shares on May 15, signaling strong insider confidence in GeneDx’s outlook and helping support the stock. Insider trade filing
• Neutral Sentiment: GeneDx received an average brokerage recommendation of “Moderate Buy,” suggesting Wall Street still sees upside despite the recent volatility. Brokerage recommendation article
• Negative Sentiment: A legal update from Pomerantz LLP said it is investigating claims on behalf of GeneDx investors, adding overhang from possible shareholder litigation after the company’s recent results. Pomerantz investigation article
• Negative Sentiment: Another law firm, Levi & Korsinsky, announced a securities investigation tied to GeneDx’s Q1 revenue miss and reduced full-year guidance, reinforcing concerns that the post-earnings selloff may not be over. Levi & Korsinsky investigation article
• Negative Sentiment: An analyst note cut GeneDx’s price target sharply to $98.94, highlighting a more cautious view after the company’s disappointing quarter. Price target cut article

Wall Street Analysts Forecast Growth

WGS has been the topic of a number of analyst reports. Zacks Research cut shares of GeneDx from a "strong-buy" rating to a "hold" rating in a research report on Friday, April 24th. Guggenheim decreased their price objective on shares of GeneDx from $100.00 to $70.00 and set a "buy" rating on the stock in a research report on Tuesday, May 5th. Weiss Ratings upgraded shares of GeneDx from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Friday. Wall Street Zen cut shares of GeneDx from a "hold" rating to a "sell" rating in a research report on Saturday, May 9th. Finally, Piper Sandler restated an "overweight" rating and issued a $130.00 price objective (down from $160.00) on shares of GeneDx in a research report on Tuesday, February 24th. Six equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $96.43.

About GeneDx

GeneDx is a clinical diagnostics company specializing in comprehensive genetic and genomic testing for rare and inherited disorders. The company offers a broad portfolio of assays, including targeted gene panels, whole exome sequencing, whole genome sequencing and chromosomal microarray analysis. GeneDx's laboratory services support the diagnosis of a wide range of conditions—from rare pediatric diseases and hereditary cancer syndromes to neuromuscular and metabolic disorders—by providing clinicians with detailed variant interpretation and reporting.

Founded in 2000 and based in Gaithersburg, Maryland, GeneDx was established with the aim of accelerating the translation of genomic discoveries into clinical care.

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