GeneDx (NASDAQ:WGS) Shares Up 6.9% - Still a Buy?

Key Points

• GeneDx shares rose 6.9% on Friday, trading as high as $41.33 after closing at $38.85, though volume was slightly below average.
• Analyst sentiment remains mostly positive despite recent target cuts: six analysts rate the stock a Buy, with a consensus Moderate Buy and an average price target of $96.43.
• The company’s latest earnings missed expectations, posting a loss of $0.28 per share on revenue of $102.25 million, while insiders recently sold shares and analysts now expect GeneDx to post -1 EPS for the full year.

GeneDx Holdings Corp. (NASDAQ:WGS - Get Free Report) shot up 6.9% during trading on Friday . The company traded as high as $41.33 and last traded at $41.5330. 908,738 shares were traded during mid-day trading, a decline of 8% from the average session volume of 989,741 shares. The stock had previously closed at $38.85.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on WGS. BTIG Research lowered their price objective on shares of GeneDx from $170.00 to $90.00 and set a "buy" rating on the stock in a research note on Tuesday, May 5th. Jefferies Financial Group set a $150.00 price objective on shares of GeneDx in a research note on Monday, February 23rd. Craig Hallum reissued a "buy" rating and issued a $85.00 price objective on shares of GeneDx in a research note on Tuesday, May 5th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of GeneDx in a research note on Wednesday, January 21st. Finally, Guggenheim decreased their price target on shares of GeneDx from $100.00 to $70.00 and set a "buy" rating on the stock in a research note on Tuesday, May 5th. Six analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, GeneDx currently has a consensus rating of "Moderate Buy" and an average target price of $96.43.

GeneDx Price Performance

The company has a market capitalization of $1.22 billion, a price-to-earnings ratio of -15.34 and a beta of 2.06. The company's 50 day simple moving average is $64.78 and its 200-day simple moving average is $102.43. 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 (NASDAQ:WGS - Get Free Report) last released its quarterly earnings results on Monday, May 4th. The company reported ($0.28) earnings per share (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 firm had revenue of $102.25 million for the quarter, compared to analyst estimates of $112.46 million. During the same period in the prior year, the business earned ($0.23) earnings per share. On average, equities research analysts predict that GeneDx Holdings Corp. will post -1 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CEO Katherine Stueland sold 2,172 shares of the firm's stock in a transaction that occurred on Wednesday, April 29th. The shares were sold at an average price of $65.19, for a total value of $141,592.68. Following the sale, the chief executive officer directly owned 93,216 shares of the company's stock, valued at approximately $6,076,751.04. This trade represents a 2.28% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Kevin Feeley sold 392 shares of the firm's stock in a transaction that occurred on Wednesday, April 29th. The stock was sold at an average price of $65.19, for a total transaction of $25,554.48. Following the completion of the sale, the chief financial officer directly owned 34,942 shares in the company, valued at $2,277,868.98. This represents a 1.11% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders have purchased 1,374,668 shares of company stock valued at $60,269,369 and have sold 104,028 shares valued at $7,377,165. Corporate insiders own 29.60% of the company's stock.

Institutional Investors Weigh In On GeneDx

Several hedge funds have recently modified their holdings of WGS. Jones Financial Companies Lllp boosted its position in shares of GeneDx by 664.3% in the third quarter. Jones Financial Companies Lllp now owns 214 shares of the company's stock worth $25,000 after acquiring an additional 186 shares during the last quarter. Kestra Advisory Services LLC acquired a new stake in shares of GeneDx in the fourth quarter worth approximately $27,000. Fifth Third Bancorp purchased a new position in GeneDx in the first quarter valued at approximately $31,000. Quarry LP raised its holdings in GeneDx by 248.8% in the third quarter. Quarry LP now owns 293 shares of the company's stock valued at $32,000 after buying an additional 209 shares during the period. Finally, Ramirez Asset Management Inc. purchased a new position in GeneDx in the fourth quarter valued at approximately $33,000. 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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