Myriad Genetics (NASDAQ:MYGN) Lowered to Strong Sell Rating by Zacks Research

Key Points

• Zacks Research downgraded Myriad Genetics to “strong sell” from “hold,” while the broader analyst consensus stands at “Reduce” with an average price target of $5.38.
• Myriad’s latest quarterly results fell short of expectations: it reported a $0.25 loss per share versus a projected $0.06 loss, while revenue declined 10.5% year over year to $190.7 million.
• Shares opened at $3.15, well below their 50-day and 200-day moving averages of $5.05 and $4.86, respectively; an insider sale was partially offset by a separate director purchase, and institutions own 99.02% of the stock.

Myriad Genetics (NASDAQ:MYGN - Get Free Report) was downgraded by research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued on Tuesday,Zacks.com reports.

MYGN has been the subject of several other research reports. Weiss Ratings lowered shares of Myriad Genetics from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Thursday, July 30th. Wells Fargo & Company dropped their target price on shares of Myriad Genetics from $5.50 to $3.00 and set an "equal weight" rating for the company in a report on Monday. Finally, TD Cowen lowered their price target on shares of Myriad Genetics from $6.00 to $4.00 and set a "hold" rating on the stock in a research report on Friday, July 31st. One equities research analyst has rated the stock with a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of "Reduce" and an average price target of $5.38.

Myriad Genetics Stock Performance

NASDAQ MYGN opened at $3.15 on Tuesday. Myriad Genetics has a 1-year low of $2.74 and a 1-year high of $8.59. The company has a market capitalization of $301.30 million, a P/E ratio of -2.65 and a beta of 1.69. The business has a 50 day moving average price of $5.05 and a 200 day moving average price of $4.86. The company has a debt-to-equity ratio of 0.40, a current ratio of 2.21 and a quick ratio of 1.98.

Myriad Genetics (NASDAQ:MYGN - Get Free Report) last posted its earnings results on Thursday, July 30th. The company reported ($0.25) EPS for the quarter, missing analysts' consensus estimates of ($0.06) by ($0.19). The firm had revenue of $190.70 million for the quarter, compared to analysts' expectations of $206.03 million. Myriad Genetics had a negative return on equity of 16.09% and a negative net margin of 13.96%.The firm's revenue for the quarter was down 10.5% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.05 earnings per share. Sell-side analysts expect that Myriad Genetics will post -0.57 EPS for the current fiscal year.

Insider Activity

In related news, Director Rashmi Kumar sold 15,000 shares of the firm's stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $4.46, for a total value of $66,900.00. Following the sale, the director directly owned 171,889 shares of the company's stock, valued at approximately $766,624.94. This trade represents a 8.03% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Paul Bisaro purchased 7,500 shares of the company's stock in a transaction that occurred on Thursday, May 14th. The shares were bought at an average cost of $3.69 per share, with a total value of $27,675.00. Following the transaction, the director directly owned 97,441 shares of the company's stock, valued at $359,557.29. The trade was a 8.34% increase in their position. The disclosure for this purchase is available in the SEC filing. Corporate insiders own 1.90% of the company's stock.

Institutional Trading of Myriad Genetics

A number of institutional investors and hedge funds have recently made changes to their positions in MYGN. Aberdeen Group plc raised its holdings in shares of Myriad Genetics by 38.6% in the 4th quarter. Aberdeen Group plc now owns 885,801 shares of the company's stock worth $5,448,000 after purchasing an additional 246,748 shares during the period. Vanguard Group Inc. lifted its stake in shares of Myriad Genetics by 4.3% in the 4th quarter. Vanguard Group Inc. now owns 8,225,371 shares of the company's stock valued at $50,586,000 after purchasing an additional 342,856 shares in the last quarter. Orbimed Advisors LLC purchased a new stake in shares of Myriad Genetics during the 1st quarter worth about $562,500,000. Y Intercept Hong Kong Ltd grew its holdings in shares of Myriad Genetics by 83.3% during the 1st quarter. Y Intercept Hong Kong Ltd now owns 654,224 shares of the company's stock worth $2,944,000 after purchasing an additional 297,331 shares during the period. Finally, Assenagon Asset Management S.A. increased its position in Myriad Genetics by 23.9% during the 1st quarter. Assenagon Asset Management S.A. now owns 1,446,961 shares of the company's stock worth $6,511,000 after purchasing an additional 279,227 shares in the last quarter. 99.02% of the stock is currently owned by institutional investors and hedge funds.

About Myriad Genetics

Myriad Genetics NASDAQ: MYGN is a molecular diagnostics company that develops and commercializes genetic tests designed to assess an individual's risk for various hereditary conditions and to guide personalized treatment decisions. The company's core business centers on predictive medicine, with a focus on hereditary cancer risk assessment through its flagship BRACAnalysis® test for BRCA1 and BRCA2 gene mutations. In addition to oncology, Myriad offers tests in women's health, neurology and pharmacogenomics to support more informed clinical decision-making.

Among its product offerings are the myRisk® Hereditary Cancer test, which screens for mutations across multiple cancer-related genes, and Prequel®, a non-invasive prenatal test for assessing fetal chromosomal abnormalities.

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