GeneDx (NASDAQ:WGS) Trading Up 10.7% - Here's What Happened

Key Points

• Shares jumped 10.7% on Thursday to as high as $40.10, with volume of ~2.64 million shares—about a 182% increase versus the average daily volume.
• Quarterly results missed expectations, reporting ($0.28) EPS vs. a ($0.06) estimate and revenue of $102.25M versus $112.46M consensus, leaving the company with a negative net margin.
• Analysts still rate the stock a "Moderate Buy" with an average price target of $96.43 despite wide-ranging price targets and recent cuts, while insiders recently sold shares (partly to cover taxes) and hold about 29.6% of shares.

GeneDx Holdings Corp. (NASDAQ:WGS - Get Free Report) shares were up 10.7% during trading on Thursday . The company traded as high as $40.10 and last traded at $38.4350. Approximately 2,643,775 shares changed hands during mid-day trading, an increase of 182% from the average daily volume of 936,591 shares. The stock had previously closed at $34.71.

Analyst Ratings Changes

A number of research analysts have recently commented on WGS shares. BTIG Research decreased their price objective on shares of GeneDx from $170.00 to $90.00 and set a "buy" rating for the company in a research report on Tuesday. Craig Hallum reissued a "buy" rating and issued a $85.00 price objective on shares of GeneDx in a research report on Tuesday. Wall Street Zen downgraded shares of GeneDx from a "buy" rating to a "hold" rating in a research report on Sunday, February 8th. Guggenheim decreased their price objective on shares of GeneDx from $100.00 to $70.00 and set a "buy" rating for the company in a research report on Tuesday. Finally, Jefferies Financial Group set a $150.00 price objective on shares of GeneDx in a research report on Monday, February 23rd. Seven research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $96.43.

GeneDx Stock Up 16.7%

The firm has a market cap of $1.19 billion, a P/E ratio of -15.11 and a beta of 2.06. The company has a debt-to-equity ratio of 0.38, a quick ratio of 2.34 and a current ratio of 3.09. The firm's fifty day moving average is $69.45 and its 200 day moving average is $106.00.

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). The company had revenue of $102.25 million for the quarter, compared to the consensus estimate 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 period in the previous year, the firm posted ($0.23) EPS. As a group, equities research analysts anticipate that GeneDx Holdings Corp. will post 0.75 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other GeneDx news, CFO Kevin Feeley sold 392 shares of GeneDx stock in a transaction dated Wednesday, April 29th. The shares were sold at an average price of $65.19, for a total value of $25,554.48. Following the completion of the sale, the chief financial officer owned 34,942 shares in the company, valued at $2,277,868.98. The trade was a 1.11% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Katherine Stueland sold 2,172 shares of GeneDx stock in a transaction dated Wednesday, April 29th. The stock was sold at an average price of $65.19, for a total transaction of $141,592.68. Following the completion of the sale, the chief executive officer owned 93,216 shares of the company's stock, valued at $6,076,751.04. This trade represents a 2.28% decrease in their position. 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. Insiders sold 104,028 shares of company stock worth $7,377,165 in the last quarter. 29.60% of the stock is currently owned by corporate insiders.

Institutional Trading of GeneDx

Hedge funds and other institutional investors have recently bought and sold shares of the business. Jones Financial Companies Lllp raised its stake in GeneDx by 664.3% in the 3rd quarter. Jones Financial Companies Lllp now owns 214 shares of the company's stock worth $25,000 after purchasing an additional 186 shares in the last quarter. Kestra Advisory Services LLC acquired a new stake in GeneDx in the 4th quarter worth about $27,000. Fifth Third Bancorp acquired a new stake in GeneDx in the 1st quarter worth about $31,000. Quarry LP raised 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 purchasing an additional 209 shares in the last quarter. Finally, Ramirez Asset Management Inc. acquired a new stake in GeneDx in the 4th quarter worth about $33,000. Institutional investors and hedge funds own 61.72% of the company's stock.

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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