Fred Alger Management LLC Lowers Stock Holdings in GeneDx Holdings Corp. $WGS

Key Points

• Fred Alger Management cut its GeneDx position by 25.4% in the fourth quarter, selling 90,666 shares and leaving it with 266,636 shares worth about $34.7 million.
• GeneDx reported a weaker-than-expected first-quarter, posting EPS of -$0.28 versus a -$0.06 estimate and revenue of $102.25 million versus $112.46 million expected.
• The stock is facing multiple headwinds, including securities class action lawsuits tied to its Fabric Genomics acquisition and a sharp reduction in analyst price targets, even as some insiders have recently bought heavily.

Fred Alger Management LLC reduced its position in GeneDx Holdings Corp. (NASDAQ:WGS - Free Report) by 25.4% in the 4th quarter, according to its most recent filing with the SEC. The firm owned 266,636 shares of the company's stock after selling 90,666 shares during the period. Fred Alger Management LLC owned about 0.92% of GeneDx worth $34,679,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Jones Financial Companies Lllp grew its stake in GeneDx by 664.3% in the 3rd quarter. Jones Financial Companies Lllp now owns 214 shares of the company's stock worth $25,000 after acquiring an additional 186 shares during the period. Kestra Advisory Services LLC purchased a new stake in GeneDx in the 4th quarter worth approximately $27,000. Quarry LP grew its stake in GeneDx by 248.8% in the 3rd quarter. Quarry LP now owns 293 shares of the company's stock worth $32,000 after acquiring an additional 209 shares during the period. Ramirez Asset Management Inc. purchased a new stake in GeneDx in the 4th quarter worth approximately $33,000. Finally, Greenline Wealth Management LLC purchased a new stake in GeneDx in the 4th quarter worth approximately $33,000. 61.72% of the stock is owned by hedge funds and other institutional investors.

GeneDx Stock Down 1.2%

Shares of NASDAQ WGS opened at $60.60 on Wednesday. GeneDx Holdings Corp. has a 52-week low of $32.21 and a 52-week high of $170.87. The firm has a fifty day moving average of $54.74 and a 200-day moving average of $88.21. The stock has a market capitalization of $1.80 billion, a PE ratio of -22.61 and a beta of 1.96. The company has a quick ratio of 2.95, a current ratio of 3.09 and a debt-to-equity ratio of 0.38.

GeneDx (NASDAQ:WGS - Get Free Report) last announced its quarterly earnings data 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 period in the prior year, the firm earned ($0.23) earnings per share. On average, analysts anticipate that GeneDx Holdings Corp. will post -1 EPS for the current year.

Analyst Ratings Changes

Several analysts have commented on WGS shares. BTIG Research lowered their target price on shares of GeneDx from $170.00 to $90.00 and set a "buy" rating for the company in a research note on Tuesday, May 5th. Piper Sandler reaffirmed an "overweight" rating and issued a $130.00 target price (down from $160.00) on shares of GeneDx in a research note on Tuesday, February 24th. Jefferies Financial Group set a $150.00 target price on shares of GeneDx in a research note on Monday, February 23rd. Weiss Ratings cut shares of GeneDx from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Monday, June 1st. Finally, Guggenheim lowered their price objective on shares of GeneDx from $100.00 to $70.00 and set a "buy" rating for the company in a research note on Tuesday, May 5th. Six equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned 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.

Key Stories Impacting GeneDx

Here are the key news stories impacting GeneDx this week:

• Negative Sentiment: Multiple law firms issued fresh reminders that a securities class action has been filed against GeneDx, with lead-plaintiff deadlines approaching for investors who bought shares between April 16, 2025 and May 4, 2026. The lawsuits center on claims that the company misrepresented acquisition performance and other business risks. Article Title
• Negative Sentiment: The legal scrutiny is tied to GeneDx’s disastrous first-quarter 2026 report, which previously triggered a sharp stock drop and included a large write-off related to the Fabric Genomics acquisition, reinforcing investor concerns about execution and deal quality. Article Title
• Neutral Sentiment: GeneDx also named Mark Gardner president to help lead its next phase of scale and growth, a management move that could support longer-term execution but is not currently offsetting the lawsuit-related overhang. Article Title

Insider Buying and Selling at GeneDx

In other GeneDx news, Director Casdin Capital, Llc bought 185,000 shares of GeneDx stock in a transaction that occurred on Tuesday, May 19th. The shares were acquired at an average price of $42.60 per share, for a total transaction of $7,881,000.00. Following the acquisition, the director owned 3,367,164 shares of the company's stock, valued at $143,441,186.40. The trade was a 5.81% increase in their position. The acquisition was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Keith A. Meister bought 533,758 shares of GeneDx stock in a transaction that occurred on Thursday, May 7th. The shares were acquired at an average price of $37.86 per share, for a total transaction of $20,208,077.88. Following the acquisition, the director directly owned 3,761,908 shares in the company, valued at approximately $142,425,836.88. This represents a 16.53% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. In the last 90 days, insiders have purchased 2,256,420 shares of company stock worth $93,144,340 and have sold 54,402 shares worth $3,395,647. Insiders own 25.17% of the company's stock.

GeneDx Company Profile

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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