Castle Biosciences (NASDAQ:CSTL) Stock Price Down 6.1% Following Insider Selling

Key Points

• Castle Biosciences shares fell 6.1% to about $34.42 following insider selling, with trading volume down 82% from its average. Several sales were made under pre-arranged Rule 10b5-1 plans, including a $149,300 sale by COO Kristen Oelschlager.
• Analysts remain broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $42, above the stock’s trading price.
• The company’s latest quarterly results exceeded expectations: revenue reached $99.86 million versus an $86.23 million estimate, while adjusted EPS of negative $0.07 beat the consensus loss estimate of $0.41. Institutional investors own approximately 92.6% of the shares.

Shares of Castle Biosciences, Inc. (NASDAQ:CSTL - Get Free Report) fell 6.1% during mid-day trading on Tuesday after an insider sold shares in the company. The stock traded as low as $34.48 and last traded at $34.4220. Approximately 69,597 shares changed hands during trading, a decline of 82% from the average daily volume of 395,572 shares. The stock had previously closed at $36.65.

Specifically, COO Kristen Oelschlager sold 4,153 shares of Castle Biosciences stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $35.95, for a total value of $149,300.35. Following the completion of the transaction, the chief operating officer owned 13,356 shares in the company, valued at approximately $480,148.20. This trade represents a 23.72% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Tobin Juvenal sold 1,034 shares of the stock in a transaction on Wednesday, September 30th. The shares were sold at an average price of $34.20, for a total value of $35,362.80. Following the sale, the insider owned 52,007 shares in the company, valued at $1,778,639.40. The trade was a 1.95% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In other Castle Biosciences news, insider Tobin Juvenal sold 5,543 shares of the business's stock in a transaction on Tuesday, September 29th. The shares were sold at an average price of $35.50, for a total transaction of $196,776.50. Following the transaction, the insider owned 53,041 shares in the company, valued at $1,882,955.50. The trade was a 9.46% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on the company. Weiss Ratings upgraded Castle Biosciences from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Friday, July 31st. BTIG Research lifted their price objective on shares of Castle Biosciences from $40.00 to $44.00 and gave the company a "buy" rating in a report on Monday, August 3rd. Roth Capital started coverage on shares of Castle Biosciences in a research note on Wednesday, June 24th. They issued a "buy" rating and a $40.00 target price on the stock. Wall Street Zen upgraded Castle Biosciences from a "hold" rating to a "buy" rating in a report on Saturday, September 26th. Finally, Robert W. Baird set a $36.00 target price on Castle Biosciences in a research report on Friday, July 31st. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Castle Biosciences has a consensus rating of "Moderate Buy" and a consensus price target of $42.00.

Castle Biosciences Trading Down 6.2%

The company has a fifty day moving average of $32.73 and a 200-day moving average of $26.35. The company has a current ratio of 6.04, a quick ratio of 5.85 and a debt-to-equity ratio of 0.02. The company has a market capitalization of $1.05 billion, a price-to-earnings ratio of -52.30 and a beta of 0.94.

Castle Biosciences (NASDAQ:CSTL - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The company reported ($0.07) EPS for the quarter, topping the consensus estimate of ($0.41) by $0.34. The business had revenue of $99.86 million for the quarter, compared to analyst estimates of $86.23 million. Castle Biosciences had a negative return on equity of 4.15% and a negative net margin of 5.43%. As a group, equities research analysts anticipate that Castle Biosciences, Inc. will post -1.29 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Castle Biosciences

Large investors have recently bought and sold shares of the stock. Global Retirement Partners LLC acquired a new position in Castle Biosciences during the second quarter worth $26,000. Caitong International Asset Management Co. Ltd increased its stake in Castle Biosciences by 140.4% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 1,750 shares of the company's stock worth $68,000 after acquiring an additional 1,022 shares during the last quarter. Quantbot Technologies LP acquired a new position in shares of Castle Biosciences during the second quarter worth about $62,000. State of Wyoming purchased a new position in Castle Biosciences in the second quarter valued at about $117,000. Finally, Assetmark Inc. grew its stake in Castle Biosciences by 9.3% in the first quarter. Assetmark Inc. now owns 5,779 shares of the company's stock worth $142,000 after purchasing an additional 492 shares in the last quarter. Institutional investors and hedge funds own 92.60% of the company's stock.

Castle Biosciences Company Profile

Castle Biosciences, Inc is a molecular diagnostics company that develops and commercializes tests designed to provide personalized information for patients with cancer and other serious diseases. Its products analyze biological characteristics in tissue samples to help physicians assess disease risk, guide treatment decisions and support patient management.

The company's portfolio includes diagnostic tests for skin cancers, such as DecisionDx-Melanoma for assessing metastatic risk in patients with cutaneous melanoma and DecisionDx-SCC for evaluating metastatic risk in certain cases of cutaneous squamous cell carcinoma.

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