GeneDx (NASDAQ:WGS) Shares Down 5.5% - What's Next?

Key Points

• GeneDx shares fell 5.5% to about $66.37, with trading volume down 96% from the average daily level. The stock’s price was below its 50-day moving average of $82.21 but near its 200-day average of $67.34.
• Analysts remain generally positive, with a “Moderate Buy” consensus and an average price target of $90.86; seven analysts rate the stock a Buy, one a Hold, and one a Sell.
• GeneDx exceeded quarterly expectations, reporting $0.01 in EPS versus a $0.19 loss estimate and revenue of $114.44 million versus $111.01 million expected. However, insiders sold 19,206 shares worth approximately $1.8 million in the past quarter, primarily to cover tax obligations on vested equity awards.

GeneDx Holdings Corp. (NASDAQ:WGS - Get Free Report)'s share price fell 5.5% during trading on Friday. The company traded as low as $66.92 and last traded at $66.3710. Approximately 32,972 shares were traded during mid-day trading, a decline of 96% from the average daily volume of 919,692 shares. The stock had previously closed at $70.22.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on WGS. Piper Sandler restated an "overweight" rating and set a $63.00 price target (up from $50.00) on shares of GeneDx in a report on Tuesday, June 23rd. BTIG Research restated a "buy" rating and issued a $90.00 price target on shares of GeneDx in a research report on Tuesday, August 4th. Guggenheim lifted their price objective on shares of GeneDx from $74.00 to $83.00 and gave the stock a "buy" rating in a research note on Thursday, October 1st. Canaccord Genuity Group increased their target price on shares of GeneDx from $75.00 to $90.00 and gave the company a "buy" rating in a research note on Tuesday, August 4th. Finally, Zacks Research downgraded shares of GeneDx from a "strong-buy" rating to a "hold" rating in a research note on Friday, October 9th. Seven 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. Based on data from MarketBeat, GeneDx has a consensus rating of "Moderate Buy" and an average price target of $90.86.

GeneDx Trading Down 6.7%

The stock's 50 day moving average is $82.21 and its two-hundred day moving average is $67.34. The company has a market capitalization of $1.95 billion, a PE ratio of -18.01 and a beta of 1.95. The company has a quick ratio of 3.06, a current ratio of 3.30 and a debt-to-equity ratio of 0.40.

GeneDx (NASDAQ:WGS - Get Free Report) last released its quarterly earnings data on Monday, August 3rd. The company reported $0.01 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.19) by $0.20. GeneDx had a negative net margin of 23.41% and a positive return on equity of 4.12%. The firm had revenue of $114.44 million for the quarter, compared to the consensus estimate of $111.01 million. During the same period last year, the firm earned $0.36 earnings per share. As a group, sell-side analysts predict that GeneDx Holdings Corp. will post -0.41 EPS for the current fiscal year.

Insider Activity at GeneDx

In other GeneDx news, 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 value of $1,025,002.61. Following the completion of the sale, the chief executive officer owned 115,476 shares of the company's stock, valued at approximately $11,271,612.36. This trade represents a 8.34% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, 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, CFO Kevin Feeley sold 3,728 shares of GeneDx stock in a transaction on Wednesday, September 16th. The stock was sold at an average price of $97.61, for a total transaction of $363,890.08. Following the sale, the chief financial officer owned 44,945 shares of the company's stock, valued at $4,387,081.45. The trade was a 7.66% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders have sold 19,206 shares of company stock valued at $1,808,056. 25.17% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On GeneDx

Hedge funds have recently added to or reduced their stakes in the business. Fifth Third Bancorp purchased a new position in GeneDx during the first quarter valued at approximately $31,000. Nykredit A S acquired a new position in GeneDx during the second quarter worth $38,000. OP Asset Management Ltd purchased a new stake in shares of GeneDx in the first quarter valued at about $45,000. Caitong International Asset Management Co. Ltd grew its stake in shares of GeneDx by 3,704.5% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 837 shares of the company's stock valued at $109,000 after buying an additional 815 shares during the period. Finally, Strs Ohio grew its position in GeneDx by 8.7% in the first quarter. Strs Ohio now owns 2,500 shares of the company's stock worth $161,000 after acquiring an additional 200 shares during the period. 61.72% of the stock is owned by hedge funds and other institutional investors.

About GeneDx

GeneDx NASDAQ: WGS is a precision health company that provides genetic testing and related data services. The company focuses on helping healthcare professionals identify genetic conditions, support diagnosis and treatment decisions, and better understand inherited disease.

Its offerings include exome and genome sequencing, testing for rare and undiagnosed disorders, hereditary cancer testing, and other genetic analyses. GeneDx also provides clinical interpretation and reporting intended to help physicians evaluate genetic results in the context of a patient's symptoms and family history.

Founded in 2000, GeneDx has built a business around genomic testing for patients with rare diseases and other inherited conditions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.