GRAIL (NASDAQ:GRAL) Shares Gap Down on Disappointing Earnings

Key Points

• GRAIL, Inc. shares gapped down to $32.51 before trading on Wednesday after reporting weaker-than-expected earnings of ($3.18) per share, missing analysts' estimates of ($3.14) by $0.04.
• The company reported revenue of $35.54 million for the quarter, which fell short of the consensus estimate of $37.57 million.
• Analyst Canaccord Genuity upgraded GRAIL's price target from $32.00 to $43.00 and assigned the stock a "buy" rating following the earnings report.

GRAIL, Inc. (NASDAQ:GRAL - Get Free Report)'s share price gapped down before the market opened on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $33.60, but opened at $32.51. GRAIL shares last traded at $33.58, with a volume of 356,588 shares trading hands.

The company reported ($3.18) earnings per share for the quarter, missing the consensus estimate of ($3.14) by ($0.04). The business had revenue of $35.54 million during the quarter, compared to analysts' expectations of $37.57 million. GRAIL had a negative return on equity of 16.64% and a negative net margin of 329.86%.

Analyst Upgrades and Downgrades

Separately, Canaccord Genuity Group boosted their price objective on GRAIL from $32.00 to $43.00 and gave the company a "buy" rating in a research note on Wednesday, May 14th.

Insider Buying and Selling

In related news, President Joshua J. Ofman sold 9,692 shares of the stock in a transaction dated Monday, June 30th. The shares were sold at an average price of $52.00, for a total value of $503,984.00. Following the completion of the transaction, the president owned 492,076 shares of the company's stock, valued at approximately $25,587,952. This trade represents a 1.93% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Aaron Freidin sold 8,000 shares of the stock in a transaction on Tuesday, July 15th. The shares were sold at an average price of $38.93, for a total value of $311,440.00. Following the sale, the chief financial officer owned 286,020 shares in the company, valued at $11,134,758.60. The trade was a 2.72% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 357,492 shares of company stock worth $17,645,718.

Hedge Funds Weigh In On GRAIL

A number of hedge funds have recently added to or reduced their stakes in the stock. Wells Fargo & Company MN purchased a new position in shares of GRAIL in the 4th quarter worth approximately $90,000. Alliancebernstein L.P. acquired a new stake in GRAIL in the fourth quarter valued at approximately $250,000. GAMMA Investing LLC grew its holdings in GRAIL by 4,102.5% in the first quarter. GAMMA Investing LLC now owns 25,131 shares of the company's stock worth $642,000 after purchasing an additional 24,533 shares during the last quarter. Wealth Enhancement Advisory Services LLC acquired a new position in GRAIL during the 1st quarter valued at about $719,000. Finally, Deutsche Bank AG purchased a new stake in GRAIL in the fourth quarter valued at about $1,001,000.

GRAIL Price Performance

The firm has a market cap of $1.18 billion, a price-to-earnings ratio of -2.50 and a beta of 3.26. The firm has a fifty day simple moving average of $40.12 and a two-hundred day simple moving average of $36.33.

GRAIL Company Profile

GRAIL, Inc operates as a commercial-stage healthcare company, which engages in the development of a technology for early detection of cancer. It utilizes machine learning, software, and automation to detect and identify multiple deadly cancer types in earlier stages. The company was founded by Jeffrey T.