Exagen (NASDAQ:XGN) Share Price Crosses Below Two Hundred Day Moving Average on Disappointing Earnings

Key Points

• Exagen shares fell below their 200-day moving average, touching $4.69 and last trading at $5.03 after the earnings announcement.
• Quarterly loss was $0.25 per share, missing the $0.18 consensus estimate, while revenue of $18.42 million slightly exceeded forecasts and rose 7% year over year.
• Despite revenue growth, operating losses widened and cash declined year over year. Analysts’ average rating was “Moderate Buy,” with a consensus price target of $9.88.

Exagen Inc. (NASDAQ:XGN - Get Free Report) shares crossed below its 200-day moving average during trading on Wednesday following a dissappointing earnings announcement. The stock has a 200-day moving average of $5.13 and traded as low as $4.69. Exagen shares last traded at $5.03, with a volume of 1,204,145 shares changing hands.

The company reported ($0.25) EPS for the quarter, missing the consensus estimate of ($0.18) by ($0.07). Exagen had a negative net margin of 25.14% and a negative return on equity of 123.63%. The company had revenue of $18.42 million for the quarter, compared to analyst estimates of $18.34 million.

Exagen News Summary

Investors following XGN have been watching these news items:

• Positive Sentiment: Q3 revenue increased 7% year over year to $18.4 million, slightly ahead of estimates. For the first nine months, revenue rose 11%, net loss narrowed 12%, and adjusted EBITDA loss improved by more than 30%. Exagen Q3 results
• Neutral Sentiment: BTIG reaffirmed its Buy rating and $9 target. Canaccord also kept a Buy rating but cut its target from $11 to $9, tempering the positive analyst outlook. Canaccord analyst rating
• Negative Sentiment: Q3 adjusted loss of $0.25 per share missed analyst expectations of roughly $0.18–$0.19. Operating expenses increased and the operating loss widened to $4.4 million from $3.1 million a year earlier; cash also fell to $28.1 million from $35.7 million a year earlier. These results highlight continued losses and cash-use concerns despite revenue growth. Q3 earnings report

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on XGN shares. Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Exagen in a research report on Wednesday, November 4th. TD Cowen upped their target price on shares of Exagen from $10.00 to $11.00 and gave the company a "buy" rating in a research note on Tuesday, October 13th. BTIG Research restated a "buy" rating and set a $9.00 target price on shares of Exagen in a research note on Wednesday. Canaccord Genuity Group dropped their price target on shares of Exagen from $11.00 to $9.00 and set a "buy" rating on the stock in a report on Wednesday. Finally, B. Riley Financial initiated coverage on shares of Exagen in a research note on Friday, September 11th. They issued a "buy" rating and a $12.00 price target for the company. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $9.88.

Insider Activity

In related news, CEO John Aballi sold 34,294 shares of the business's stock in a transaction that occurred on Friday, October 16th. The shares were sold at an average price of $7.87, for a total transaction of $269,893.78. Following the completion of the sale, the chief executive officer directly owned 805,540 shares in the company, valued at approximately $6,339,599.80. The trade was a 4.08% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, major shareholder Jorey Chernett purchased 7,085 shares of the business's stock in a transaction on Tuesday, November 10th. The shares were bought at an average cost of $5.26 per share, with a total value of $37,267.10. Following the acquisition, the insider directly owned 2,625,625 shares of the company's stock, valued at $13,810,787.50. This trade represents a 0.27% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have bought a total of 29,585 shares of company stock valued at $195,682 in the last ninety days. Insiders own 10.40% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. Corient Private Wealth LP purchased a new stake in Exagen during the second quarter valued at approximately $52,000. Penbrook Management LLC purchased a new position in Exagen in the third quarter worth $92,000. Calamos Advisors LLC purchased a new position in Exagen in the third quarter worth $94,000. Bank of New York Mellon Corp purchased a new position in Exagen in the second quarter worth $97,000. Finally, Russell Investments Group Ltd. acquired a new position in shares of Exagen during the third quarter worth $418,000. 75.25% of the stock is owned by hedge funds and other institutional investors.

Exagen Stock Performance

The business has a 50-day moving average price of $7.84 and a 200-day moving average price of $5.13. The company has a quick ratio of 3.18, a current ratio of 3.18 and a debt-to-equity ratio of 1.96. The firm has a market capitalization of $121.88 million, a price-to-earnings ratio of -6.71 and a beta of 2.25.

Exagen Company Profile

Exagen Inc. is a commercial-stage diagnostic company focused on improving the diagnosis and management of autoimmune and rheumatic diseases. The company develops and commercializes blood tests that help physicians identify autoimmune disease, distinguish among related conditions and monitor disease activity over time. Its principal product family is AVISE, which includes the AVISE CTD and AVISE Lupus tests, as well as monitoring and specialty tests used in the evaluation of systemic lupus erythematosus and other connective-tissue diseases.

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