Connor Clark & Lunn Investment Management Ltd. Takes $1.58 Million Position in Veracyte, Inc. $VCYT

Key Points

• Connor Clark & Lunn Investment Management acquired 26,948 Veracyte shares worth approximately $1.58 million in the second quarter, joining other institutional investors expanding their positions.
• Veracyte reported stronger-than-expected quarterly results, with EPS of $0.54 versus the $0.41 consensus and revenue of $150.32 million, up 15.5% year over year.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and a $54.33 target price, although the stock recently fell 4.2% to $43.34; insiders sold shares primarily to cover tax obligations on vested equity awards.

Connor Clark & Lunn Investment Management Ltd. bought a new stake in Veracyte, Inc. (NASDAQ:VCYT - Free Report) during the second quarter, according to its most recent disclosure with the SEC. The firm bought 26,948 shares of the biotechnology company's stock, valued at approximately $1,583,000.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Osaic Holdings Inc. grew its holdings in shares of Veracyte by 289.9% during the second quarter. Osaic Holdings Inc. now owns 1,201 shares of the biotechnology company's stock worth $33,000 after purchasing an additional 893 shares during the last quarter. Torren Management LLC acquired a new stake in shares of Veracyte during the fourth quarter worth about $37,000. Empowered Funds LLC purchased a new stake in shares of Veracyte in the 4th quarter valued at about $42,000. Smartleaf Asset Management LLC lifted its holdings in shares of Veracyte by 159.8% in the 4th quarter. Smartleaf Asset Management LLC now owns 1,104 shares of the biotechnology company's stock valued at $47,000 after purchasing an additional 679 shares during the last quarter. Finally, Allworth Financial LP acquired a new stake in shares of Veracyte in the 2nd quarter valued at about $50,000.

Insider Activity

In related news, EVP Annie Mcguire sold 3,176 shares of the stock in a transaction on Thursday, June 4th. The stock was sold at an average price of $49.76, for a total transaction of $158,037.76. Following the completion of the sale, the executive vice president directly owned 137,240 shares of the company's stock, valued at $6,829,062.40. This trade represents a 2.26% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider John Leite sold 13,975 shares of Veracyte stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $50.07, for a total transaction of $699,728.25. Following the completion of the transaction, the insider owned 132,305 shares in the company, valued at approximately $6,624,511.35. This trade represents a 9.55% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders sold 162,492 shares of company stock valued at $8,151,197. 1.60% of the stock is currently owned by company insiders.

Veracyte Stock Down 4.2%

NASDAQ VCYT opened at $43.34 on Friday. Veracyte, Inc. has a 52-week low of $29.38 and a 52-week high of $60.91. The business's 50-day moving average price is $51.92 and its 200 day moving average price is $42.86. The firm has a market cap of $3.48 billion, a P/E ratio of 30.74 and a beta of 1.95.

Veracyte (NASDAQ:VCYT - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The biotechnology company reported $0.54 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.41 by $0.13. Veracyte had a return on equity of 9.26% and a net margin of 20.37%.The firm had revenue of $150.32 million for the quarter, compared to analysts' expectations of $144.59 million. During the same quarter in the previous year, the firm posted $0.44 EPS. The firm's revenue for the quarter was up 15.5% on a year-over-year basis. As a group, analysts anticipate that Veracyte, Inc. will post 1.32 earnings per share for the current year.

Analysts Set New Price Targets

A number of research analysts recently issued reports on the company. Needham & Company LLC raised their price target on Veracyte from $57.00 to $69.00 and gave the stock a "buy" rating in a research note on Friday, July 31st. UBS Group boosted their price objective on Veracyte from $48.00 to $52.00 and gave the company a "buy" rating in a research note on Wednesday, May 6th. Zacks Research upgraded shares of Veracyte from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, August 11th. Wolfe Research initiated coverage on shares of Veracyte in a research report on Tuesday, June 2nd. They set an "outperform" rating and a $55.00 target price on the stock. Finally, Wall Street Zen raised shares of Veracyte from a "buy" rating to a "strong-buy" rating in a report on Sunday, July 12th. Two investment analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $54.33.

Veracyte Profile

Veracyte, Inc is a genomic diagnostics company focused on improving diagnostic accuracy and patient care through advanced molecular testing. Founded in 2008 and headquartered in South San Francisco, California, the company develops and commercializes minimally invasive genomic tests that aid in the diagnosis of thyroid, lung and other diseases. Veracyte's proprietary platform analyzes gene expression patterns in clinical samples to help physicians make more informed treatment decisions, reducing unnecessary surgeries and improving patient outcomes.

The company's flagship product, the Afirma Genomic Sequencing Classifier, is designed to assess thyroid nodules with indeterminate cytology, helping clinicians distinguish benign from suspicious nodules.

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