Traders Purchase Large Volume of Put Options on GeneDx (NASDAQ:WGS)

Key Points

• Traders bought 6,604 GeneDx put options on Tuesday—about 255% above the average daily volume of 1,861 contracts.
• GeneDx shares fell $10.52 to $55.20 during Tuesday’s trading, with volume above its average.
• GeneDx beat Q3 earnings and revenue estimates, but reports of lowered growth targets and EPS declining from a year earlier raised concerns about growth momentum. Analysts’ consensus rating remained “Moderate Buy,” with a $90.14 average price target.

GeneDx Holdings Corp. (NASDAQ:WGS - Get Free Report) saw unusually large options trading on Tuesday. Stock traders bought 6,604 put options on the stock. This represents an increase of approximately 255% compared to the average daily volume of 1,861 put options.

GeneDx Stock Performance

Shares of NASDAQ:WGS traded down $10.52 during trading on Tuesday, hitting $55.20. The stock had a trading volume of 1,053,758 shares, compared to its average volume of 925,062. GeneDx has a 12-month low of $32.21 and a 12-month high of $170.87. The company has a quick ratio of 3.06, a current ratio of 3.30 and a debt-to-equity ratio of 0.40. The stock has a market capitalization of $1.65 billion, a price-to-earnings ratio of -15.22 and a beta of 2.00. The stock has a 50-day simple moving average of $76.42 and a two-hundred day simple moving average of $71.15.

GeneDx (NASDAQ:WGS - Get Free Report) last announced its quarterly earnings results on Monday, November 9th. The company reported $0.28 earnings per share for the quarter, beating the consensus estimate of $0.07 by $0.21. GeneDx had a positive return on equity of 4.12% and a negative net margin of 23.41%. The firm had revenue of $123.10 million during the quarter, compared to analyst estimates of $122.93 million. During the same quarter in the previous year, the business earned ($0.27) EPS. On average, equities research analysts expect that GeneDx will post -0.41 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on WGS shares. Wall Street Zen raised shares of GeneDx from a "sell" rating to a "hold" rating in a research report on Saturday, August 8th. BTIG Research reissued a "buy" rating and set a $85.00 price objective (down from $90.00) on shares of GeneDx in a report on Tuesday. Zacks Research downgraded GeneDx from a "strong-buy" rating to a "hold" rating in a report on Friday, October 9th. TD Cowen reaffirmed a "buy" rating on shares of GeneDx in a research report on Wednesday, July 15th. Finally, Weiss Ratings reiterated a "sell (d)" rating on shares of GeneDx in a report on Monday, November 2nd. Seven research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, GeneDx presently has a consensus rating of "Moderate Buy" and a consensus target price of $90.14.

GeneDx News Summary

Here are the key news stories impacting GeneDx this week:

• Positive Sentiment: GeneDx reported Q3 earnings of $0.28 per share, above the $0.07 consensus estimate, and revenue of $123.1 million, slightly ahead of the $122.9 million estimate. GeneDx Q3 earnings and revenue estimates
• Neutral Sentiment: GeneDx forecast FY 2026 revenue of $475 million–$490 million, a range that includes the $481.1 million analyst consensus. The midpoint is close to expectations, so the guidance offers limited surprise on its own.
• Negative Sentiment: Reports said shares fell after GeneDx lowered growth targets. Also, Q3 EPS was down from $0.49 a year earlier despite beating the current-quarter estimate, raising questions about growth momentum. GeneDx shares and lowered growth targets

Insider Activity at GeneDx

In related news, CFO Kevin Feeley sold 3,728 shares of GeneDx stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $97.61, for a total transaction of $363,890.08. Following the completion of the transaction, the chief financial officer directly owned 44,945 shares of the company's stock, valued at approximately $4,387,081.45. The trade was a 7.66% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Katherine Stueland sold 10,501 shares of the firm's stock in a transaction dated Wednesday, September 16th. The stock was sold at an average price of $97.61, for a total transaction of $1,025,002.61. Following the completion of the sale, the chief executive officer directly owned 115,476 shares of the company's stock, valued at approximately $11,271,612.36. The trade was a 8.34% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 19,206 shares of company stock worth $1,808,056 over the last three months. 25.17% of the stock is currently owned by insiders.

Institutional Investors Weigh In On GeneDx

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. William Blair Investment Management LLC boosted its holdings in shares of GeneDx by 11.4% in the 3rd quarter. William Blair Investment Management LLC now owns 1,560,247 shares of the company's stock valued at $112,806,000 after buying an additional 159,594 shares in the last quarter. Russell Investments Group Ltd. grew its holdings in shares of GeneDx by 271.7% during the third quarter. Russell Investments Group Ltd. now owns 44,167 shares of the company's stock worth $3,193,000 after purchasing an additional 32,286 shares during the last quarter. Calamos Advisors LLC purchased a new stake in shares of GeneDx in the 3rd quarter valued at about $225,000. Moody Aldrich Partners LLC boosted its position in shares of GeneDx by 131.9% in the 3rd quarter. Moody Aldrich Partners LLC now owns 36,064 shares of the company's stock valued at $2,607,000 after purchasing an additional 20,511 shares during the period. Finally, Sterling Capital Management LLC increased its position in GeneDx by 851.4% during the third quarter. Sterling Capital Management LLC now owns 666 shares of the company's stock worth $48,000 after buying an additional 596 shares during the period. Institutional investors and hedge funds own 61.72% of the company's stock.

GeneDx Company Profile

GeneDx is a genomic testing company focused on helping clinicians diagnose rare and inherited conditions. Its services include whole exome and whole genome sequencing, along with other genetic tests and clinical interpretation of results.

The company's testing is used by healthcare providers to support diagnosis and care decisions, particularly for patients with suspected rare genetic disorders. GeneDx also offers testing related to hereditary cancer risk.

Founded in 2000 by researchers with experience at the National Institutes of Health, GeneDx has developed its business around applying genomic information in clinical care.

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