Fred Alger Management LLC Sells 133,585 Shares of Veracyte, Inc. $VCYT

Key Points

• Fred Alger Management LLC cut its Veracyte stake by 17.4% in the fourth quarter, selling 133,585 shares and ending with 633,894 shares valued at about $26.7 million.
• Veracyte reported strong quarterly results, posting earnings of $0.52 per share versus the $0.34 consensus and revenue of $139.07 million, up 21.5% year over year.
• The stock has climbed to near its 52-week high after the earnings beat, while analysts remain mixed but generally moderately bullish with an average price target of $47.57.

Fred Alger Management LLC reduced its stake in Veracyte, Inc. (NASDAQ:VCYT - Free Report) by 17.4% during the fourth quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 633,894 shares of the biotechnology company's stock after selling 133,585 shares during the quarter. Fred Alger Management LLC owned approximately 0.80% of Veracyte worth $26,687,000 at the end of the most recent quarter.

Other institutional investors also recently bought and sold shares of the company. Osaic Holdings Inc. raised its holdings in Veracyte by 289.9% in the 2nd 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 period. Torren Management LLC bought a new position in Veracyte in the 4th quarter worth $37,000. Empowered Funds LLC bought a new position in Veracyte in the 4th quarter worth $42,000. Smartleaf Asset Management LLC raised its holdings in Veracyte by 159.8% in the 4th quarter. Smartleaf Asset Management LLC now owns 1,104 shares of the biotechnology company's stock worth $47,000 after purchasing an additional 679 shares during the period. Finally, Neo Ivy Capital Management bought a new position in Veracyte in the 3rd quarter worth $56,000.

Veracyte Stock Up 3.6%

Shares of Veracyte stock opened at $50.92 on Wednesday. The firm has a market cap of $4.06 billion, a price-to-earnings ratio of 46.72 and a beta of 1.98. The business has a 50-day moving average price of $40.14 and a 200-day moving average price of $39.30. Veracyte, Inc. has a twelve month low of $22.61 and a twelve month high of $52.45.

Veracyte (NASDAQ:VCYT - Get Free Report) last issued its quarterly earnings data on Tuesday, May 5th. The biotechnology company reported $0.52 earnings per share for the quarter, beating analysts' consensus estimates of $0.34 by $0.18. The firm had revenue of $139.07 million during the quarter, compared to analyst estimates of $130.36 million. Veracyte had a return on equity of 9.07% and a net margin of 16.25%.The business's quarterly revenue was up 21.5% compared to the same quarter last year. During the same quarter last year, the business posted $0.31 earnings per share. On average, equities analysts expect that Veracyte, Inc. will post 1.29 EPS for the current fiscal year.

Insider Activity

In other news, SVP Annie Mcguire sold 10,204 shares of the firm's stock in a transaction dated Wednesday, May 6th. The stock was sold at an average price of $39.02, for a total transaction of $398,160.08. Following the completion of the transaction, the senior vice president owned 143,708 shares in the company, valued at $5,607,486.16. This trade represents a 6.63% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider John Leite sold 13,975 shares of the firm's stock in a transaction dated Thursday, June 4th. The shares were sold at an average price of $50.07, for a total value of $699,728.25. Following the transaction, the insider owned 132,305 shares of the company's stock, valued at approximately $6,624,511.35. The trade was a 9.55% decrease in their position. 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 have sold 202,967 shares of company stock valued at $9,881,831. 1.40% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

A number of brokerages recently commented on VCYT. Morgan Stanley decreased their target price on Veracyte from $48.00 to $37.00 and set an "underweight" rating on the stock in a report on Thursday, March 5th. Wolfe Research began coverage on Veracyte in a report on Tuesday, June 2nd. They issued an "outperform" rating and a $55.00 target price on the stock. Jefferies Financial Group began coverage on Veracyte in a report on Monday, April 13th. They issued a "buy" rating and a $45.00 target price on the stock. UBS Group raised their target price on Veracyte from $48.00 to $52.00 and gave the stock a "buy" rating in a report on Wednesday, May 6th. Finally, Zacks Research lowered Veracyte from a "strong-buy" rating to a "hold" rating in a research note on Thursday, March 12th. One research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Veracyte currently has an average rating of "Moderate Buy" and an average price target of $47.57.

Veracyte Company 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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