GeneDx (NASDAQ:WGS) Shares Up 8.6% on Insider Buying Activity

Key Points

• GeneDx shares rose 8.6% after insider buying activity, with the stock trading as high as $56.68 on Tuesday before closing near $56.23.
• Director Casdin Capital made two sizable purchases this week, including 150,000 shares at $56.44 and 50,000 shares at $52.86, signaling notable insider confidence.
• Analyst sentiment is still generally positive overall, with GeneDx carrying a Moderate Buy consensus rating, though the company is also facing a securities class-action lawsuit tied to its post-earnings decline and Fabric Genomics acquisition disclosures.

GeneDx Holdings Corp. (NASDAQ:WGS - Get Free Report) rose 8.6% during trading on Tuesday following insider buying activity. The company traded as high as $56.68 and last traded at $56.23. Approximately 829,324 shares changed hands during trading, a decline of 20% from the average daily volume of 1,033,621 shares. The stock had previously closed at $51.80.

Specifically, Director Casdin Capital, Llc bought 50,000 shares of the company's stock in a transaction that occurred on Friday, June 5th. The shares were bought at an average price of $52.86 per share, for a total transaction of $2,643,000.00. Following the transaction, the director directly owned 3,707,164 shares of the company's stock, valued at approximately $195,960,689.04. The trade was a 1.37% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Casdin Capital, Llc bought 150,000 shares of the company's stock in a transaction that occurred on Thursday, June 4th. The shares were bought at an average price of $56.44 per share, for a total transaction of $8,466,000.00. Following the transaction, the director directly owned 3,657,164 shares in the company, valued at $206,410,336.16. This trade represents a 4.28% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure.

Wall Street Analyst Weigh In

WGS has been the subject of several analyst reports. Guggenheim lowered their target price on shares of GeneDx from $100.00 to $70.00 and set a "buy" rating for the company in a report on Tuesday, May 5th. Wall Street Zen lowered shares of GeneDx from a "hold" rating to a "sell" rating in a research report on Saturday, May 9th. Zacks Research lowered shares of GeneDx from a "strong-buy" rating to a "hold" rating in a report on Friday, April 24th. BTIG Research reduced their target price on shares of GeneDx from $170.00 to $90.00 and set a "buy" rating on the stock in a research report on Tuesday, May 5th. Finally, Canaccord Genuity Group set a $75.00 price target on shares of GeneDx and gave the company a "buy" rating in a report on Tuesday, May 5th. 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. Based on data from MarketBeat, GeneDx currently has a consensus rating of "Moderate Buy" and a consensus price target of $96.43.

More GeneDx News

Here are the key news stories impacting GeneDx this week:

• Positive Sentiment: Director Casdin Capital made another large insider purchase, buying 50,000 shares at $52.86 after also buying 150,000 shares earlier in the week. Repeated insider accumulation can signal confidence in GeneDx’s long-term value. SEC filing
• Neutral Sentiment: Analyst coverage remains generally favorable, with GeneDx holding an average “Moderate Buy” rating, which may help support sentiment if fundamentals improve. Analyst rating update
• Negative Sentiment: Multiple law firms are promoting or reminding investors about a securities class-action lawsuit against GeneDx, creating a legal overhang and raising uncertainty around prior disclosures and shareholder losses. Class action announcement
• Negative Sentiment: The lawsuits focus on the sharp post-earnings selloff and alleged misstatements tied to the Fabric Genomics acquisition, keeping investor attention on execution and disclosure risk. Litigation article

GeneDx Stock Performance

The stock has a market cap of $1.66 billion, a PE ratio of -20.84 and a beta of 1.96. The company has a fifty day moving average price of $55.25 and a 200 day moving average price of $92.12. The company has a quick ratio of 2.95, a current ratio of 3.09 and a debt-to-equity ratio of 0.38.

GeneDx (NASDAQ:WGS - Get Free Report) last released its quarterly earnings data on Monday, May 4th. The company reported ($0.28) EPS for the quarter, missing the consensus estimate of ($0.06) by ($0.22). The company had revenue of $102.25 million during the quarter, compared to analysts' expectations 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 quarter in the prior year, the firm posted ($0.23) EPS. Analysts expect that GeneDx Holdings Corp. will post -1 earnings per share for the current year.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. Royal Bank of Canada increased its holdings in GeneDx by 30.2% during the 1st quarter. Royal Bank of Canada now owns 29,479 shares of the company's stock valued at $2,611,000 after purchasing an additional 6,840 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its holdings in GeneDx by 6.3% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 7,641 shares of the company's stock valued at $677,000 after purchasing an additional 453 shares during the period. NewEdge Advisors LLC increased its holdings in GeneDx by 270,700.0% during the 1st quarter. NewEdge Advisors LLC now owns 2,708 shares of the company's stock valued at $240,000 after purchasing an additional 2,707 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in GeneDx by 67.5% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 28,224 shares of the company's stock valued at $2,500,000 after purchasing an additional 11,375 shares during the period. Finally, Cetera Investment Advisers purchased a new position in GeneDx during the 2nd quarter valued at about $249,000. Hedge funds and other institutional investors own 61.72% of the company's stock.

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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