Sumitomo Mitsui Trust Group Inc. Trims Stock Position in Veracyte, Inc. $VCYT

Key Points

• Sumitomo Mitsui Trust Group cut its Veracyte stake by 16.1% in the first quarter, selling 202,242 shares and ending with 1.06 million shares valued at about $34 million.
• Veracyte reported strong quarterly results, with EPS of $0.52 topping estimates by $0.18 and revenue of $139.07 million beating expectations; revenue also rose 21.5% from a year earlier.
• Analyst sentiment is generally positive, with several firms raising price targets and the stock now carrying a consensus “Moderate Buy” rating and average target price of $51.86.

Sumitomo Mitsui Trust Group Inc. decreased its stake in Veracyte, Inc. (NASDAQ:VCYT - Free Report) by 16.1% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 1,055,656 shares of the biotechnology company's stock after selling 202,242 shares during the period. Sumitomo Mitsui Trust Group Inc. owned 1.32% of Veracyte worth $34,003,000 at the end of the most recent reporting period.

Other hedge funds have also recently modified their holdings of the company. Osaic Holdings Inc. lifted its position in Veracyte by 289.9% in the second quarter. Osaic Holdings Inc. now owns 1,201 shares of the biotechnology company's stock valued at $33,000 after acquiring an additional 893 shares during the last quarter. Torren Management LLC purchased a new position in shares of Veracyte during the fourth quarter worth about $37,000. Empowered Funds LLC acquired a new stake in shares of Veracyte during the fourth quarter worth about $42,000. Smartleaf Asset Management LLC increased its position in shares of Veracyte by 159.8% during the fourth 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 in the last quarter. Finally, GAMMA Investing LLC lifted its holdings in shares of Veracyte by 146.4% in the 4th quarter. GAMMA Investing LLC now owns 1,454 shares of the biotechnology company's stock valued at $61,000 after purchasing an additional 864 shares during the last quarter.

Veracyte Stock Performance

Shares of NASDAQ:VCYT opened at $57.48 on Tuesday. The business's fifty day moving average price is $49.16 and its two-hundred day moving average price is $40.95. The stock has a market cap of $4.59 billion, a PE ratio of 52.73 and a beta of 1.93. Veracyte, Inc. has a one year low of $22.61 and a one year high of $60.91.

Veracyte (NASDAQ:VCYT - Get Free Report) last issued its quarterly earnings results on Tuesday, May 5th. The biotechnology company reported $0.52 earnings per share for the quarter, topping analysts' consensus estimates of $0.34 by $0.18. The company had revenue of $139.07 million for 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 revenue for the quarter was up 21.5% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.31 EPS. As a group, equities research analysts predict that Veracyte, Inc. will post 1.29 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on VCYT shares. Morgan Stanley upped their target price on Veracyte from $37.00 to $47.00 and gave the company an "underweight" rating in a research report on Thursday. Wolfe Research assumed coverage on Veracyte in a research note on Tuesday, June 2nd. They issued an "outperform" rating and a $55.00 price objective for the company. Zacks Research raised Veracyte from a "hold" rating to a "strong-buy" rating in a report on Tuesday, July 7th. Jefferies Financial Group initiated coverage on shares of Veracyte in a research report on Monday, April 13th. They set a "buy" rating and a $45.00 target price on the stock. Finally, Guggenheim lifted their target price on shares of Veracyte from $45.00 to $65.00 and gave the company a "buy" rating in a report on Monday, June 29th. Two investment analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $51.86.

Insider Buying and Selling

In other Veracyte news, EVP Annie Mcguire sold 3,176 shares of Veracyte stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $49.76, for a total value of $158,037.76. Following the transaction, the executive vice president owned 137,240 shares in the company, valued at approximately $6,829,062.40. The trade was a 2.26% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. 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, CFO Rebecca Chambers sold 3,561 shares of Veracyte stock in a transaction dated Thursday, June 4th. The stock was sold at an average price of $49.73, for a total value of $177,088.53. Following the completion of the transaction, the chief financial officer directly owned 173,280 shares in the company, valued at $8,617,214.40. This represents a 2.01% decrease in their position. The SEC filing for this sale provides additional information. 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. In the last ninety days, insiders have sold 206,696 shares of company stock worth $10,079,058. 1.60% of the stock is owned by corporate insiders.

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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