GeneDx (NASDAQ:WGS) Cut to "Sell" at Wall Street Zen

Key Points

• Wall Street Zen downgraded GeneDx from “hold” to “sell,” adding to a mixed analyst backdrop that still includes several buy/overweight ratings and a consensus “Moderate Buy” view.
• GeneDx reported a wider-than-expected quarterly loss of $0.28 per share and revenue of $102.25 million, both below analyst estimates.
• The stock traded around $40.77, far below its 52-week high of $170.87, while insider and institutional activity remained active with notable buying by directors and large fund holdings.

GeneDx (NASDAQ:WGS - Get Free Report) was downgraded by Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued to clients and investors on Saturday.

A number of other brokerages also recently issued reports on WGS. Wells Fargo & Company reiterated an "overweight" rating and issued a $75.00 price target (down from $155.00) on shares of GeneDx in a research note on Tuesday. Weiss Ratings reiterated a "sell (d)" rating on shares of GeneDx in a research note on Wednesday, January 21st. BTIG Research decreased their price target on shares of GeneDx from $170.00 to $90.00 and set a "buy" rating for the company in a research note on Tuesday. Piper Sandler reiterated an "overweight" rating and issued a $130.00 price target (down from $160.00) on shares of GeneDx in a research note on Tuesday, February 24th. Finally, Canaccord Genuity Group set a $75.00 price target on shares of GeneDx and gave the stock a "buy" rating in a research note on Tuesday. Six analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $96.43.

GeneDx Stock Up 0.7%

Shares of GeneDx stock opened at $40.77 on Friday. GeneDx has a 52-week low of $32.21 and a 52-week high of $170.87. The company has a 50 day moving average of $68.65 and a 200 day moving average of $105.43. The company has a quick ratio of 2.34, a current ratio of 3.09 and a debt-to-equity ratio of 0.38. The company has a market capitalization of $1.19 billion, a P/E ratio of -15.21 and a beta of 2.06.

GeneDx (NASDAQ:WGS - Get Free Report) last issued its quarterly earnings results on Monday, May 4th. The company reported ($0.28) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.06) by ($0.22). GeneDx had a positive return on equity of 9.15% and a negative net margin of 17.58%.The firm had revenue of $102.25 million during the quarter, compared to analysts' expectations of $112.46 million. During the same quarter in the prior year, the firm earned ($0.23) EPS. As a group, research analysts forecast that GeneDx will post 0.75 EPS for the current fiscal year.

Insider Activity

In other GeneDx news, Director Keith A. Meister bought 140,026 shares of the business's stock in a transaction dated Thursday, March 5th. The shares were acquired at an average cost of $81.19 per share, with a total value of $11,368,710.94. Following the acquisition, the director directly owned 3,228,150 shares of the company's stock, valued at $262,093,498.50. The trade was a 4.53% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Kevin Feeley sold 6,187 shares of GeneDx stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $78.61, for a total transaction of $486,360.07. Following the completion of the transaction, the chief financial officer directly owned 18,674 shares in the company, valued at $1,467,963.14. The trade was a 24.89% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 104,028 shares of company stock valued at $7,377,165 in the last ninety days. 29.60% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On GeneDx

A number of institutional investors have recently modified their holdings of WGS. Westfield Capital Management Co. LP increased its holdings in shares of GeneDx by 87.1% in the 4th quarter. Westfield Capital Management Co. LP now owns 1,018,261 shares of the company's stock valued at $132,435,000 after acquiring an additional 474,167 shares during the period. ARK Investment Management LLC purchased a new position in GeneDx in the 3rd quarter valued at $48,157,000. Franklin Resources Inc. grew its position in GeneDx by 60.4% in the 4th quarter. Franklin Resources Inc. now owns 1,092,988 shares of the company's stock valued at $142,154,000 after buying an additional 411,607 shares during the last quarter. Invesco Ltd. grew its position in GeneDx by 59.2% in the 4th quarter. Invesco Ltd. now owns 786,466 shares of the company's stock valued at $102,288,000 after buying an additional 292,394 shares during the last quarter. Finally, Sumitomo Mitsui Trust Group Inc. purchased a new position in GeneDx in the 3rd quarter valued at $31,488,000. 61.72% of the stock is owned by institutional investors and hedge funds.

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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