GeneDx (NASDAQ:WGS) Downgraded by Zacks Research to "Strong Sell"

Key Points

• GeneDx was downgraded by Zacks Research from “hold” to “strong sell”, adding to a mixed analyst picture for the stock.
• Other firms remain more constructive: Piper Sandler, Guggenheim, and Craig Hallum maintained or reiterated buy/overweight ratings, and MarketBeat shows a Moderate Buy consensus with an average price target of $87.43.
• The company’s latest quarter missed expectations, with EPS of -$0.28 versus an expected -$0.06 and revenue of $102.25 million versus the $112.46 million estimate, while ongoing class-action lawsuit headlines continue to weigh on sentiment.

GeneDx (NASDAQ:WGS - Get Free Report) was downgraded by analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued to investors on Monday,Zacks.com reports.

A number of other analysts have also weighed in on the stock. Piper Sandler reissued an "overweight" rating and issued a $63.00 price target (up from $50.00) on shares of GeneDx in a report on Tuesday, June 23rd. Wall Street Zen cut GeneDx from a "hold" rating to a "sell" rating in a research note on Saturday, May 9th. Weiss Ratings cut GeneDx from a "sell (d-)" rating to a "sell (e+)" rating in a report on Monday, June 1st. Guggenheim reiterated a "buy" rating and set a $74.00 price target (up from $70.00) on shares of GeneDx in a research report on Monday. Finally, Craig Hallum reaffirmed a "buy" rating and set a $85.00 target price on shares of GeneDx in a report on Tuesday, May 5th. Six analysts have rated the stock with a Buy rating and two have given a Sell rating to the company's stock. According to MarketBeat, GeneDx presently has a consensus rating of "Moderate Buy" and an average target price of $87.43.

GeneDx Trading Down 0.7%

Shares of WGS opened at $68.65 on Monday. The company has a debt-to-equity ratio of 0.38, a quick ratio of 2.95 and a current ratio of 3.09. The company has a market cap of $2.04 billion, a price-to-earnings ratio of -25.62 and a beta of 1.96. The stock has a fifty day moving average price of $54.39 and a two-hundred day moving average price of $81.24. GeneDx has a 52-week low of $32.21 and a 52-week high of $170.87.

GeneDx (NASDAQ:WGS - Get Free Report) last announced its earnings results on Monday, May 4th. The company reported ($0.28) EPS for the quarter, missing the consensus estimate 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 business had revenue of $102.25 million for the quarter, compared to the consensus estimate of $112.46 million. During the same quarter in the previous year, the company posted ($0.23) EPS. Analysts predict that GeneDx will post -1 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Keith A. Meister purchased 533,758 shares of the firm's stock in a transaction dated 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 acquisition, the director directly owned 3,761,908 shares of the company's stock, valued at approximately $142,425,836.88. This represents a 16.53% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Casdin Capital, Llc acquired 185,000 shares of the company's stock in a transaction that occurred on Tuesday, May 19th. The shares were acquired at an average cost of $42.60 per share, for a total transaction of $7,881,000.00. Following the purchase, the director directly owned 3,367,164 shares in the company, valued at $143,441,186.40. This trade represents a 5.81% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last three months, insiders have bought 2,256,420 shares of company stock worth $93,144,340 and have sold 21,699 shares worth $1,295,646. Company insiders own 25.17% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in WGS. Bank of America Corp DE lifted its position in GeneDx by 77.5% in the 1st quarter. Bank of America Corp DE now owns 234,606 shares of the company's stock valued at $15,066,000 after acquiring an additional 102,456 shares in the last quarter. California State Teachers Retirement System lifted its stake in GeneDx by 31.2% in the 1st quarter. California State Teachers Retirement System now owns 25,045 shares of the company's stock valued at $1,608,000 after acquiring an additional 5,951 shares in the last quarter. Ashford Capital Management Inc. lifted its stake in GeneDx by 31.9% in the 1st quarter. Ashford Capital Management Inc. now owns 174,512 shares of the company's stock valued at $11,207,000 after acquiring an additional 42,186 shares in the last quarter. Quantinno Capital Management LP boosted its position in GeneDx by 99.2% during the 1st quarter. Quantinno Capital Management LP now owns 3,810 shares of the company's stock worth $245,000 after acquiring an additional 1,897 shares during the last quarter. Finally, First Light Asset Management LLC acquired a new position in GeneDx during the 1st quarter worth approximately $15,601,000. Institutional investors and hedge funds own 61.72% of the company's stock.

GeneDx News Summary

Here are the key news stories impacting GeneDx this week:

• Positive Sentiment: No clearly positive company-specific catalysts were reported in the latest headlines.
• Neutral Sentiment: Several law firms, including Rosen, Pomerantz, Kessler Topaz, Robbins Geller, and others, reiterated the lead-plaintiff deadline in the class action against GeneDx. Article Title
• Neutral Sentiment: The lawsuit centers on alleged misstatements about the Fabric Genomics acquisition and its synergy potential, with firms arguing investors were misled about acquisition performance. Article Title
• Neutral Sentiment: Lawyers also pointed to the company’s Q1 2026 results and a reported $31.2 million impairment charge, which they say contributed to a sharp share-price drop and may be central to the case. Article Title
• Negative Sentiment: Ongoing class-action marketing and investigation headlines can weigh on sentiment by highlighting potential legal liability and uncertainty for GeneDx shareholders. Article Title

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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