GeneDx (NASDAQ:WGS) Shares Gap Down - Here's Why

Key Points

• GeneDx shares plunged: The stock opened at $56.25 versus its prior close of $65.72 and last traded at $54.39, amid reports of lowered growth targets.
• Q3 results beat estimates: Earnings were $0.28 per share versus $0.07 expected, while revenue of $123.1 million slightly topped forecasts. However, EPS was down from $0.49 a year earlier.
• 2026 revenue guidance was broadly in line: GeneDx forecast $475 million–$490 million, compared with analyst consensus of $481.1 million; analysts overall maintain a “Moderate Buy” rating and an average $90.14 price target.

GeneDx Holdings Corp. (NASDAQ:WGS - Get Free Report) gapped down prior to trading on Tuesday. The stock had previously closed at $65.72, but opened at $56.25. GeneDx shares last traded at $54.3910, with a volume of 608,952 shares trading hands.

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

Analyst Upgrades and Downgrades

WGS has been the topic of several research analyst reports. Weiss Ratings reissued a "sell (d)" rating on shares of GeneDx in a research report on Monday, November 2nd. Guggenheim raised their target price on GeneDx from $74.00 to $83.00 and gave the company a "buy" rating in a research report on Thursday, October 1st. Wall Street Zen upgraded GeneDx from a "sell" rating to a "hold" rating in a research note on Saturday, August 8th. TD Cowen reissued a "buy" rating on shares of GeneDx in a report on Wednesday, July 15th. Finally, Zacks Research downgraded shares of GeneDx from a "strong-buy" rating to a "hold" rating in a report on Friday, October 9th. Seven equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $90.14.

GeneDx Stock Performance

The company has a debt-to-equity ratio of 0.40, a quick ratio of 3.06 and a current ratio of 3.30. The company has a market cap of $1.61 billion, a PE ratio of -14.89 and a beta of 2.00. The company's 50 day moving average price is $76.42 and its 200-day moving average price is $71.15.

GeneDx (NASDAQ:WGS - Get Free Report) last announced its quarterly earnings data 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 business had revenue of $123.10 million during the quarter, compared to analyst estimates of $122.93 million. During the same period in the prior year, the company earned ($0.27) earnings per share. Equities research analysts anticipate that GeneDx Holdings Corp. will post -0.41 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CFO Kevin Feeley sold 3,728 shares of GeneDx stock in a transaction dated Wednesday, September 16th. The stock was sold at an average price of $97.61, for a total value of $363,890.08. Following the completion of the sale, the chief financial officer owned 44,945 shares of the company's stock, valued at approximately $4,387,081.45. This trade represents a 7.66% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 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 business's stock in a transaction dated Wednesday, September 16th. The shares were 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 in the company, valued at $11,271,612.36. This represents a 8.34% 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. Insiders have sold a total of 19,206 shares of company stock worth $1,808,056 in the last ninety days. Insiders own 25.17% of the company's stock.

Hedge Funds Weigh In On GeneDx

Large investors have recently modified their holdings of the business. Strs Ohio increased its position in shares of GeneDx by 8.7% in the first quarter. Strs Ohio now owns 2,500 shares of the company's stock worth $161,000 after purchasing an additional 200 shares during the last quarter. Pictet Asset Management Holding SA raised its stake in GeneDx by 12.9% in the first quarter. Pictet Asset Management Holding SA now owns 3,300 shares of the company's stock valued at $212,000 after purchasing an additional 378 shares in the last quarter. Swiss National Bank lifted its position in GeneDx by 1.0% during the first quarter. Swiss National Bank now owns 40,000 shares of the company's stock valued at $2,569,000 after purchasing an additional 400 shares during the last quarter. Fifth Third Bancorp bought a new stake in GeneDx during the first quarter valued at approximately $31,000. Finally, Keebeck Wealth Management grew its stake in GeneDx by 13.5% in the 1st quarter. Keebeck Wealth Management now owns 4,310 shares of the company's stock worth $277,000 after buying an additional 513 shares in the last quarter. Hedge funds and other institutional investors 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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