GRAIL (NASDAQ:GRAL) Shares Up 13.2% Following Earnings Beat

Key Points

• 13.2% jump after earnings beat: GRAIL reported EPS of ($2.29) vs. consensus ($2.76) and revenue of $40.79M vs. $39.16M, lifting the stock to about $61.58 on Wednesday despite below-average volume.
• The company remains unprofitable with a negative net margin of 277% and negative return on equity, and its 200-day moving average sits well above the current price, signaling longer-term pressure.
• Significant insider selling (CEO and CFO reduced holdings; 310,267 shares sold in the last three months) plus a mixed analyst outlook — consensus "Hold" with an average target of $67.38 after several target cuts — could limit upside.

Shares of GRAIL, Inc. (NASDAQ:GRAL - Get Free Report) shot up 13.2% on Wednesday following a better than expected earnings announcement. The company traded as high as $60.92 and last traded at $61.58. 556,040 shares were traded during trading, a decline of 50% from the average session volume of 1,117,877 shares. The stock had previously closed at $54.40.

The company reported ($2.29) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($2.76) by $0.47. The business had revenue of $40.79 million for the quarter, compared to the consensus estimate of $39.16 million. GRAIL had a negative net margin of 277.46% and a negative return on equity of 17.11%.

Analyst Ratings Changes

GRAL has been the subject of several research analyst reports. Canaccord Genuity Group dropped their target price on shares of GRAIL from $105.00 to $80.00 and set a "buy" rating for the company in a research report on Friday, February 20th. Wall Street Zen cut shares of GRAIL from a "hold" rating to a "sell" rating in a research report on Saturday, April 11th. Guggenheim dropped their target price on shares of GRAIL from $130.00 to $75.00 and set a "buy" rating for the company in a research report on Monday, March 30th. TD Cowen reaffirmed a "buy" rating on shares of GRAIL in a research report on Wednesday. Finally, Robert W. Baird set a $70.00 target price on shares of GRAIL in a research report on Wednesday. Four equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $67.38.

Insider Transactions at GRAIL

In other news, CFO Aaron Freidin sold 45,806 shares of the company's stock in a transaction dated Wednesday, April 8th. The shares were sold at an average price of $49.92, for a total value of $2,286,635.52. Following the sale, the chief financial officer directly owned 260,669 shares of the company's stock, valued at $13,012,596.48. This represents a 14.95% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Robert P. Ragusa sold 123,502 shares of the company's stock in a transaction dated Wednesday, April 8th. The stock was sold at an average price of $49.92, for a total transaction of $6,165,219.84. Following the completion of the sale, the chief executive officer directly owned 518,582 shares in the company, valued at $25,887,613.44. This represents a 19.23% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 310,267 shares of company stock valued at $15,485,396 in the last three months.

Institutional Trading of GRAIL

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Prosperity Consulting Group LLC grew its position in shares of GRAIL by 6.9% in the 1st quarter. Prosperity Consulting Group LLC now owns 3,881 shares of the company's stock worth $201,000 after buying an additional 250 shares during the period. Geneos Wealth Management Inc. grew its position in shares of GRAIL by 160.0% in the 1st quarter. Geneos Wealth Management Inc. now owns 585 shares of the company's stock worth $30,000 after buying an additional 360 shares during the period. Principal Financial Group Inc. purchased a new stake in shares of GRAIL in the 1st quarter worth about $2,057,000. Carnegie Investment Counsel grew its position in shares of GRAIL by 1.9% in the 1st quarter. Carnegie Investment Counsel now owns 217,100 shares of the company's stock worth $11,220,000 after buying an additional 4,050 shares during the period. Finally, 180 Wealth Advisors LLC boosted its stake in GRAIL by 10.7% in the 1st quarter. 180 Wealth Advisors LLC now owns 127,347 shares of the company's stock worth $6,581,000 after purchasing an additional 12,300 shares in the last quarter.

GRAIL Trading Up 12.7%

The company has a market cap of $2.63 billion, a P/E ratio of -5.49 and a beta of 3.03. The stock's 50 day moving average is $50.40 and its 200-day moving average is $78.71.

GRAIL Company Profile

GRAIL, Inc NASDAQ: GRAL is a biotechnology company dedicated to the early detection of cancer through a multi-cancer blood test. Leveraging advances in next-generation sequencing, cell-free DNA (cfDNA) analysis and machine learning, GRAIL has developed the Galleri™ test, which aims to identify more than 50 types of cancer at their earliest stages. The company's platform analyzes methylation patterns in circulating tumor DNA to pinpoint tumor presence and tissue of origin, enabling physicians to pursue timely diagnostic follow-up.

Founded in 2016 as a spin-out from Illumina, GRAIL established its headquarters in Menlo Park, California, with additional research and operations centers in the United Kingdom.

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