GeneDx (NASDAQ:WGS) Stock Price Up 8.8% Following Insider Buying Activity

Key Points

• GeneDx shares jumped 8.8% after a series of insider purchases, with the stock trading as high as $48.65 on heavier-than-usual attention. Trading volume was below average, but the move reflected renewed investor interest.
• Director Casdin Capital bought large blocks of stock over three consecutive sessions, including 140,000 shares on May 20, 185,000 shares on May 19, and 175,000 shares on May 18. The purchases totaled more than $21 million and significantly increased the director’s stake.
• Analysts remain cautiously positive overall, with a consensus rating of “Moderate Buy” and an average price target of $96.43, though several firms recently cut targets or downgraded the stock. GeneDx also reported a wider-than-expected quarterly loss and revenue below estimates in its latest earnings release.

GeneDx Holdings Corp. (NASDAQ:WGS - Get Free Report)'s share price rose 8.8% during trading on Thursday following insider buying activity. The stock traded as high as $48.65 and last traded at $48.68. Approximately 781,358 shares traded hands during trading, a decline of 22% from the average daily volume of 1,007,135 shares. The stock had previously closed at $44.73.

Specifically, Director Casdin Capital, Llc purchased 140,000 shares of the company's stock in a transaction dated Wednesday, May 20th. The shares were bought at an average price of $43.81 per share, with a total value of $6,133,400.00. Following the completion of the transaction, the director directly owned 3,507,164 shares in the company, valued at $153,648,854.84. This trade represents a 4.16% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Casdin Capital, Llc bought 185,000 shares of the company's stock in a transaction that occurred on Tuesday, May 19th. The shares were bought at an average cost of $42.60 per share, for a total transaction of $7,881,000.00. Following the transaction, the director directly owned 3,367,164 shares of the company's stock, valued at $143,441,186.40. This trade represents a 5.81% increase in their position. The disclosure for this purchase is available in the SEC filing. In related news, Director Casdin Capital, Llc bought 175,000 shares of the company's stock in a transaction that occurred on Monday, May 18th. The shares were acquired at an average price of $42.55 per share, with a total value of $7,446,250.00. Following the completion of the transaction, the director owned 3,182,164 shares of the company's stock, valued at $135,401,078.20. The trade was a 5.82% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the stock. Wall Street Zen downgraded shares of GeneDx from a "hold" rating to a "sell" rating in a research note on Saturday, May 9th. Craig Hallum reiterated a "buy" rating and set a $85.00 price target on shares of GeneDx in a research note on Tuesday, May 5th. Zacks Research downgraded shares of GeneDx from a "strong-buy" rating to a "hold" rating in a research note on Friday, April 24th. Piper Sandler reaffirmed an "overweight" rating and issued a $130.00 target price (down from $160.00) on shares of GeneDx in a report on Tuesday, February 24th. Finally, Wells Fargo & Company reaffirmed an "overweight" rating and issued a $75.00 target price (down from $155.00) on shares of GeneDx in a report on Tuesday, May 5th. Six research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, GeneDx has a consensus rating of "Moderate Buy" and a consensus price target of $96.43.

GeneDx Trading Up 9.6%

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 capitalization of $1.46 billion, a price-to-earnings ratio of -18.31 and a beta of 2.06. The business's 50-day simple moving average is $61.30 and its 200-day simple moving average is $99.89.

GeneDx (NASDAQ:WGS - Get Free Report) last released its 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 negative net margin of 17.58% and a positive return on equity of 9.15%. The business had revenue of $102.25 million for the quarter, compared to analyst estimates of $112.46 million. During the same quarter in the previous year, the company posted ($0.23) earnings per share. On average, research analysts expect that GeneDx Holdings Corp. will post -1 earnings per share for the current fiscal year.

Institutional Trading of GeneDx

A number of hedge funds have recently modified their holdings of WGS. ARK Investment Management LLC bought a new stake in GeneDx in the third quarter valued at approximately $48,157,000. Principal Financial Group Inc. boosted its holdings in GeneDx by 340.4% in the third quarter. Principal Financial Group Inc. now owns 59,624 shares of the company's stock valued at $6,424,000 after acquiring an additional 46,085 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. boosted its holdings in GeneDx by 30.6% in the fourth quarter. Sumitomo Mitsui Trust Group Inc. now owns 381,725 shares of the company's stock valued at $49,647,000 after acquiring an additional 89,470 shares during the last quarter. Telemark Asset Management LLC bought a new stake in GeneDx in the third quarter valued at approximately $12,929,000. Finally, Impax Asset Management Group plc bought a new stake in GeneDx in the third quarter valued at approximately $5,387,000. 61.72% of the stock is currently owned by institutional investors and hedge funds.

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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