Insider Selling: Veracyte (NASDAQ:VCYT) CEO Sells 138,051 Shares of Stock

Key Points

• Veracyte CEO Marc Stapley sold 138,051 shares on June 4 at an average price of $50.12, generating about $6.9 million. The sale was part of a pre-arranged Rule 10b5-1 plan and was tied to tax withholding from vesting equity awards.
• Veracyte shares were trading up 2.6% around the time of the report, near $49.94, close to the stock’s 52-week high of $50.71. The company has a market cap of about $3.98 billion and has traded well above its 50-day and 200-day moving averages.
• The company recently beat quarterly expectations, reporting $0.52 EPS versus $0.34 expected and revenue of $139.07 million versus $130.36 million estimated. Analysts currently view the stock as a Moderate Buy, with a consensus price target of $47.57.

Veracyte, Inc. (NASDAQ:VCYT - Get Free Report) CEO Marc Stapley sold 138,051 shares of the stock in a transaction that occurred on Thursday, June 4th. The stock was sold at an average price of $50.12, for a total value of $6,919,116.12. Following the completion of the transaction, the chief executive officer owned 440,494 shares of the company's stock, valued at $22,077,559.28. The trade was a 23.86% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards.

Veracyte Trading Up 2.6%

Veracyte stock traded up $1.25 during mid-day trading on Thursday, hitting $49.94. The company's stock had a trading volume of 1,644,973 shares, compared to its average volume of 1,133,651. The firm has a market capitalization of $3.98 billion, a PE ratio of 45.82 and a beta of 1.98. Veracyte, Inc. has a 1 year low of $22.61 and a 1 year high of $50.71. The stock's fifty day moving average is $37.48 and its two-hundred day moving average is $39.01.

Veracyte (NASDAQ:VCYT - Get Free Report) last issued its quarterly earnings data on Tuesday, May 5th. The biotechnology company reported $0.52 earnings per share for the quarter, topping the consensus estimate of $0.34 by $0.18. The company had revenue of $139.07 million during the quarter, compared to analyst estimates of $130.36 million. Veracyte had a return on equity of 9.07% and a net margin of 16.25%.The firm's revenue for the quarter was up 21.5% compared to the same quarter last year. During the same period in the prior year, the business posted $0.31 earnings per share. On average, equities analysts expect that Veracyte, Inc. will post 1.28 EPS for the current fiscal year.

Wall Street Analyst Weigh In

Several research analysts have recently commented on the company. Jefferies Financial Group assumed coverage on Veracyte in a research report on Monday, April 13th. They set a "buy" rating and a $45.00 price target for the company. Morgan Stanley lowered their price target on Veracyte from $48.00 to $37.00 and set an "underweight" rating for the company in a research report on Thursday, March 5th. Needham & Company LLC raised their price target on Veracyte from $48.00 to $57.00 and gave the stock a "buy" rating in a research report on Monday. Weiss Ratings restated a "hold (c)" rating on shares of Veracyte in a research report on Friday, March 27th. Finally, Zacks Research lowered Veracyte from a "strong-buy" rating to a "hold" rating in a research report on Thursday, March 12th. One equities research analyst has rated the stock with a Strong Buy rating, four have issued 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, Veracyte has a consensus rating of "Moderate Buy" and an average price target of $47.57.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of VCYT. Royal Bank of Canada boosted its holdings in Veracyte by 23.3% in the first quarter. Royal Bank of Canada now owns 28,712 shares of the biotechnology company's stock valued at $852,000 after purchasing an additional 5,435 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in Veracyte by 12.2% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 195,793 shares of the biotechnology company's stock valued at $5,805,000 after purchasing an additional 21,330 shares during the period. Jane Street Group LLC boosted its holdings in Veracyte by 94.7% in the first quarter. Jane Street Group LLC now owns 216,909 shares of the biotechnology company's stock valued at $6,431,000 after purchasing an additional 105,499 shares during the period. Intech Investment Management LLC boosted its holdings in Veracyte by 54.1% in the first quarter. Intech Investment Management LLC now owns 42,762 shares of the biotechnology company's stock valued at $1,268,000 after purchasing an additional 15,017 shares during the period. Finally, Russell Investments Group Ltd. boosted its holdings in Veracyte by 32.2% in the second quarter. Russell Investments Group Ltd. now owns 48,786 shares of the biotechnology company's stock valued at $1,319,000 after purchasing an additional 11,889 shares during the period.

Trending Headlines about Veracyte

Here are the key news stories impacting Veracyte this week:

• Positive Sentiment: Wolfe Research upgraded Veracyte to “strong-buy,” a fresh bullish signal that can attract momentum and analyst-following investors.
• Positive Sentiment: Veracyte has remained strong since its last earnings report, with the stock up materially over the past month as investors continue to reward its better-than-expected results and growth outlook. Why Is Veracyte (VCYT) Up 18.2% Since Last Earnings Report?
• Positive Sentiment: Recent presentations and ASCO-related updates on OPTIMA and ENZAMET may be supporting confidence in Veracyte’s oncology pipeline and longer-term growth story.
• Neutral Sentiment: Canaccord Genuity reiterated a hold rating, which does not materially change the outlook but suggests some analysts remain cautious. Canaccord Genuity Reaffirms Their Hold Rating on Veracyte (VCYT)
• Neutral Sentiment: Several insiders, including the CEO, CFO, and another executive, sold shares under pre-arranged 10b5-1 plans to cover tax withholding tied to equity vesting. While large in dollar value, these sales are typically viewed as routine and not necessarily a sign of deteriorating fundamentals.

About Veracyte

Veracyte, Inc is a genomic diagnostics company focused on improving diagnostic accuracy and patient care through advanced molecular testing. Founded in 2008 and headquartered in South San Francisco, California, the company develops and commercializes minimally invasive genomic tests that aid in the diagnosis of thyroid, lung and other diseases. Veracyte's proprietary platform analyzes gene expression patterns in clinical samples to help physicians make more informed treatment decisions, reducing unnecessary surgeries and improving patient outcomes.

The company's flagship product, the Afirma Genomic Sequencing Classifier, is designed to assess thyroid nodules with indeterminate cytology, helping clinicians distinguish benign from suspicious nodules.

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