Myriad Genetics Sees Unusually High Options Volume (NASDAQ:MYGN)

Key Points

• Unusually high options activity: Investors purchased 5,030 Myriad Genetics call options, a 4,023% increase over the average volume of 122 calls.
• Shares surged during trading: MYGN rose $1.54 to $5.75, with trading volume reaching 15.5 million shares versus an average of 1.8 million.
• Analyst sentiment remains cautious: The stock carries a consensus “Reduce” rating and a $4.02 price target, while the company recently missed quarterly earnings and revenue estimates.

Myriad Genetics, Inc. (NASDAQ:MYGN - Get Free Report) was the target of some unusual options trading on Tuesday. Stock investors bought 5,030 call options on the stock. This represents an increase of 4,023% compared to the average volume of 122 call options.

Myriad Genetics Stock Performance

NASDAQ:MYGN traded up $1.54 during trading hours on Tuesday, reaching $5.75. The company had a trading volume of 15,484,983 shares, compared to its average volume of 1,814,912. The firm has a market cap of $550.47 million, a price-to-earnings ratio of -4.84 and a beta of 1.64. The company has a current ratio of 2.21, a quick ratio of 1.98 and a debt-to-equity ratio of 0.40. The firm's 50 day moving average price is $3.68 and its 200-day moving average price is $4.36. Myriad Genetics has a 52 week low of $2.74 and a 52 week high of $8.50.

Myriad Genetics (NASDAQ:MYGN - Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The company reported ($0.25) earnings per share for the quarter, missing the consensus estimate of ($0.06) by ($0.19). The firm had revenue of $190.70 million for the quarter, compared to the consensus estimate of $206.03 million. Myriad Genetics had a negative net margin of 13.96% and a negative return on equity of 16.09%. Myriad Genetics's quarterly revenue was down 10.5% compared to the same quarter last year. During the same period in the previous year, the company earned $0.05 earnings per share. On average, analysts forecast that Myriad Genetics will post -0.99 EPS for the current year.

Institutional Investors Weigh In On Myriad Genetics

Hedge funds and other institutional investors have recently made changes to their positions in the business. Orbimed Advisors LLC bought a new position in Myriad Genetics in the 1st quarter worth $562,500,000. BlackRock Inc. purchased a new position in Myriad Genetics during the second quarter valued at $62,184,000. Assenagon Asset Management S.A. grew its holdings in Myriad Genetics by 23.9% during the first quarter. Assenagon Asset Management S.A. now owns 1,446,961 shares of the company's stock valued at $6,511,000 after purchasing an additional 279,227 shares during the period. Connor Clark & Lunn Investment Management Ltd. bought a new stake in Myriad Genetics during the second quarter valued at about $8,039,000. Finally, Man Group plc bought a new stake in Myriad Genetics during the second quarter valued at about $5,189,000. Hedge funds and other institutional investors own 99.02% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms have commented on MYGN. Weiss Ratings raised Myriad Genetics from a "sell (e+)" rating to a "sell (d-)" rating in a report on Monday, October 12th. Wall Street Zen downgraded Myriad Genetics from a "hold" rating to a "sell" rating in a report on Saturday, August 8th. Wells Fargo & Company dropped their price objective on Myriad Genetics from $5.50 to $3.00 and set an "equal weight" rating on the stock in a research report on Monday, August 3rd. Craig Hallum lifted their price objective on Myriad Genetics from $4.00 to $8.00 and gave the stock a "buy" rating in a report on Friday, October 2nd. Finally, Zacks Research upgraded Myriad Genetics from a "strong sell" rating to a "hold" rating in a report on Thursday, October 15th. One equities research analyst has rated the stock with a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, Myriad Genetics has a consensus rating of "Reduce" and a consensus price target of $4.02.

Myriad Genetics Company Profile

Myriad Genetics, Inc is a molecular diagnostics company that develops and provides genetic tests designed to help healthcare professionals assess disease risk, guide treatment decisions and support patient care. The company serves physicians, hospitals, health systems, biopharmaceutical companies and patients, with a focus on areas including oncology, women's health and mental health.

Its portfolio includes hereditary cancer testing, such as the MyRisk Hereditary Cancer test; tumor profiling and companion diagnostic services used to help inform cancer treatment; prenatal and carrier screening tests, including Prequel and Foresight; and pharmacogenomic testing, including GeneSight, which is intended to help clinicians evaluate how a patient may respond to certain psychiatric medications.

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