GeneDx Holdings Corp. (NASDAQ:WGS) Receives Consensus Recommendation of "Moderate Buy" from Analysts

Key Points

• GeneDx Holdings has a consensus analyst rating of “Moderate Buy” from eight brokerages, with six buy ratings and two sell ratings. The average 12-month price target is about $87.43.
• Recent analyst actions were mixed: Canaccord, Guggenheim, Craig Hallum, and Piper Sandler all reiterated bullish views, while Zacks Research downgraded the stock from hold to strong sell.
• The company also faces notable legal overhang, with class-action outreach and investor-solicitation efforts continuing over allegations tied to the Fabric Genomics deal. Despite that, insiders and some hedge funds have been active buyers of the stock.

GeneDx Holdings Corp. (NASDAQ:WGS - Get Free Report) has received an average recommendation of "Moderate Buy" from the eight brokerages that are currently covering the stock, MarketBeat.com reports. Two research analysts have rated the stock with a sell rating and six have given a buy rating to the company. The average 12-month target price among brokers that have issued ratings on the stock in the last year is $87.4286.

Several analysts recently weighed in on the company. Canaccord Genuity Group set a $75.00 target price on GeneDx and gave the company a "buy" rating in a research note on Tuesday, May 5th. Guggenheim reaffirmed a "buy" rating and issued a $74.00 price target (up from $70.00) on shares of GeneDx in a research report on Monday. Craig Hallum reiterated a "buy" rating and set a $85.00 price target on shares of GeneDx in a report on Tuesday, May 5th. Piper Sandler reissued an "overweight" rating and issued a $63.00 price objective (up from $50.00) on shares of GeneDx in a research report on Tuesday, June 23rd. Finally, Zacks Research downgraded shares of GeneDx from a "hold" rating to a "strong sell" rating in a research note on Monday.

GeneDx Stock Performance

NASDAQ:WGS opened at $67.51 on Friday. The firm has a market capitalization of $2.00 billion, a PE ratio of -25.19 and a beta of 1.90. GeneDx has a 1 year low of $32.21 and a 1 year high of $170.87. The company has a current ratio of 3.09, a quick ratio of 2.95 and a debt-to-equity ratio of 0.38. The firm's fifty day simple moving average is $54.42 and its 200 day simple moving average is $80.06.

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

Insider Buying and Selling at GeneDx

In related news, Director Casdin Capital, Llc acquired 185,000 shares of the business's stock in a transaction dated Tuesday, May 19th. The stock was acquired at an average price of $42.60 per share, with a total value of $7,881,000.00. Following the completion of the transaction, the director owned 3,367,164 shares of the company's stock, valued at approximately $143,441,186.40. This represents a 5.81% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Keith A. Meister bought 533,758 shares of GeneDx stock in a transaction that occurred on Thursday, May 7th. The stock was bought at an average price of $37.86 per share, with a total value of $20,208,077.88. Following the purchase, the director owned 3,761,908 shares of the company's stock, valued at $142,425,836.88. This trade represents a 16.53% increase in their position. The SEC filing for this purchase provides additional information. Over the last quarter, insiders have purchased 2,256,420 shares of company stock valued at $93,144,340 and have sold 21,699 shares valued at $1,295,646. 25.17% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On GeneDx

Large investors have recently added to or reduced their stakes in the company. ARK Investment Management LLC bought a new stake in shares of GeneDx during the third quarter valued at approximately $48,157,000. Sumitomo Mitsui Trust Group Inc. lifted its position in GeneDx by 30.6% in the fourth quarter. Sumitomo Mitsui Trust Group Inc. now owns 381,725 shares of the company's stock worth $49,647,000 after purchasing an additional 89,470 shares during the period. SG Americas Securities LLC boosted its stake in GeneDx by 937.3% during the fourth quarter. SG Americas Securities LLC now owns 63,181 shares of the company's stock worth $8,217,000 after buying an additional 57,090 shares in the last quarter. Assenagon Asset Management S.A. increased its holdings in GeneDx by 1,358.7% in the 4th quarter. Assenagon Asset Management S.A. now owns 205,895 shares of the company's stock valued at $26,779,000 after buying an additional 191,780 shares during the period. Finally, Goldman Sachs Group Inc. increased its holdings in GeneDx by 4.5% in the 4th quarter. Goldman Sachs Group Inc. now owns 1,220,502 shares of the company's stock valued at $158,738,000 after buying an additional 52,322 shares during the period. Institutional investors and hedge funds own 61.72% of the company's stock.

Key GeneDx News

Here are the key news stories impacting GeneDx this week:

• Negative Sentiment: New class-action outreach and deadline reminders keep legal risk in focus for GeneDx Holdings Corp. (WGS), highlighting allegations tied to the Fabric Genomics deal and investor losses. Article: INVESTOR ALERT: GeneDx Holdings Corp. (WGS) Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit
• Negative Sentiment: Rosen Law Firm and other plaintiffs’ firms are continuing to solicit investors, suggesting the securities-fraud case is still active and may weigh on sentiment. Article: ROSEN, A TOP-RANKED LAW FIRM, Encourages GeneDx Holdings Corp. Investors to Secure Counsel Before Important Deadline in Securities Class Action - WGS
• Negative Sentiment: Zacks Research downgraded GeneDx from hold to strong sell, adding analyst pressure to the negative legal backdrop. Article: Zacks Research downgrade

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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