GeneDx (NASDAQ:WGS) Earns "Buy" Rating from BTIG Research

Key Points

• BTIG Research reaffirmed its “Buy” rating on GeneDx and set a $90 price target, implying 32.63% upside from the stock’s prior close. Analysts overall rate the shares “Moderate Buy,” with an average target of $87.43.
• GeneDx exceeded quarterly expectations, reporting $0.01 adjusted EPS versus a projected $0.19 loss and revenue of $114.44 million versus $111.01 million expected. Management reaffirmed 2026 revenue guidance of $475 million to $490 million.
• Despite revenue and gross-profit growth, profitability and cash flow remain concerns: the company posted operating and net losses and $29 million in operating cash outflow. Securities litigation allegations also add financial and reputational risk.

GeneDx (NASDAQ:WGS - Get Free Report)'s stock had its "buy" rating restated by equities research analysts at BTIG Research in a research report issued on Tuesday,Benzinga reports. They presently have a $90.00 target price on the stock. BTIG Research's target price indicates a potential upside of 32.63% from the stock's previous close.

Other equities research analysts have also recently issued research reports about the company. Canaccord Genuity Group set a $75.00 price target on GeneDx and gave the company a "buy" rating in a report on Tuesday, May 5th. TD Cowen reissued a "buy" rating on shares of GeneDx in a report on Wednesday, July 15th. Wall Street Zen cut GeneDx from a "hold" rating to a "sell" rating in a research report on Saturday, May 9th. Wells Fargo & Company reaffirmed an "overweight" rating and set a $75.00 target price (down from $155.00) on shares of GeneDx in a research note on Tuesday, May 5th. Finally, Piper Sandler reissued an "overweight" rating and set a $63.00 price target (up from $50.00) on shares of GeneDx in a report on Tuesday, June 23rd. Seven investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $87.43.

GeneDx Price Performance

Shares of WGS opened at $67.86 on Tuesday. The firm has a market cap of $2.01 billion, a price-to-earnings ratio of -25.32 and a beta of 1.92. The stock has a 50 day moving average of $61.08 and a 200-day moving average of $69.30. The company has a current ratio of 3.09, a quick ratio of 2.95 and a debt-to-equity ratio of 0.38. GeneDx has a 52 week low of $32.21 and a 52 week high of $170.87.

GeneDx (NASDAQ:WGS - Get Free Report) last posted its earnings results on Monday, August 3rd. The company reported $0.01 EPS for the quarter, beating the consensus estimate of ($0.19) by $0.20. The company had revenue of $114.44 million during the quarter, compared to analyst estimates of $111.01 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 company earned $0.36 earnings per share. As a group, analysts forecast that GeneDx will post -1 EPS for the current year.

Insider Transactions at GeneDx

In other news, Director Casdin Capital, Llc bought 185,000 shares of the firm's stock in a transaction on Tuesday, May 19th. The stock was bought at an average cost of $42.60 per share, for a total transaction of $7,881,000.00. Following the completion of the acquisition, the director directly owned 3,367,164 shares in the company, valued at $143,441,186.40. This represents a 5.81% increase in their position. The purchase was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Keith A. Meister bought 533,758 shares of the company's stock in a transaction dated Thursday, May 7th. The stock was purchased at an average cost of $37.86 per share, for a total transaction of $20,208,077.88. Following the completion of the transaction, the director owned 3,761,908 shares of the company's stock, valued at $142,425,836.88. This represents a 16.53% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last three months, insiders purchased 2,256,420 shares of company stock worth $93,144,340 and sold 19,135 shares worth $1,128,499. Company insiders own 25.17% of the company's stock.

Institutional Investors Weigh In On GeneDx

Several hedge funds have recently made changes to their positions in WGS. Kestra Advisory Services LLC acquired a new stake in GeneDx during the 4th quarter valued at $27,000. Ramirez Asset Management Inc. purchased a new position in shares of GeneDx during the fourth quarter valued at $33,000. Greenline Wealth Management LLC acquired a new position in GeneDx during the fourth quarter valued at $33,000. Bank Julius Baer & Co. Ltd Zurich acquired a new position in GeneDx during the fourth quarter valued at $35,000. Finally, Quarry LP lifted its stake in GeneDx by 248.8% in the 3rd quarter. Quarry LP now owns 293 shares of the company's stock worth $32,000 after acquiring an additional 209 shares in the last quarter. Hedge funds and other institutional investors own 61.72% of the company's stock.

GeneDx News Summary

Here are the key news stories impacting GeneDx this week:

• Positive Sentiment: Quarterly results beat estimates: GeneDx reported adjusted EPS of $0.01, above the consensus estimate of a $0.19 loss, while revenue increased 11.4% year over year to $114.4 million, ahead of expectations. GeneDx quarterly earnings report
• Positive Sentiment: Full-year revenue guidance reaffirmed: Management maintained its 2026 revenue forecast of $475 million to $490 million, broadly in line with the $477.1 million analyst consensus. The company expects a meaningful improvement in collection rates beginning in the fourth quarter, which could support future revenue quality and cash generation. GeneDx reaffirms 2026 revenue guidance
• Positive Sentiment: Gross profit increased: Gross profit rose approximately 10% to $78.2 million, indicating that GeneDx continues to expand its top line despite a challenging profitability environment. GeneDx second-quarter financial results
• Neutral Sentiment: Investor positioning is mixed: Recent institutional filings showed both sizable additions and reductions in WGS positions. Reported insider activity was also mixed, with large purchases by certain investors alongside sales by company executives, offering no clear signal about near-term sentiment.
• Negative Sentiment: Profitability and cash flow remain weak: GeneDx posted a $17.5 million operating loss, a $17.7 million net loss, and $29 million in operating cash outflow. Losses worsened from the prior year, while cash stood at $60.3 million and total liabilities reached $237.3 million. GeneDx Q2 losses and cash flow report
• Negative Sentiment: Securities litigation adds risk: Several law firms publicized a class-action lawsuit alleging securities-law violations related to purchases made between April 16, 2025, and May 4, 2026. The allegations are not proven, but the litigation could create financial, reputational, and management risks. GeneDx securities class action announcement

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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