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

Key Points

• GeneDx shares jumped 11.2%, opening at $58.07 after closing at $56.15 and later trading near $61.28. The company has a market capitalization of approximately $1.86 billion.
• Analyst sentiment remains favorable, with seven Buy ratings, one Hold and one Sell, producing a consensus “Moderate Buy” rating and an average price target of $90.86; Guggenheim recently raised its target to $83.
• GeneDx exceeded quarterly expectations with earnings of $0.01 per share versus a $0.19 loss estimate and revenue of $114.44 million. Insiders sold shares primarily to cover tax obligations, while institutional investors increased holdings and collectively own 61.72% of the company.

GeneDx Holdings Corp. (NASDAQ:WGS - Get Free Report) gapped up before the market opened on Monday. The stock had previously closed at $56.15, but opened at $58.07. GeneDx shares last traded at $61.2820, with a volume of 123,482 shares changing hands.

Analyst Ratings Changes

A number of research firms have commented on WGS. TD Cowen reissued a "buy" rating on shares of GeneDx in a research report on Wednesday, July 15th. Wall Street Zen raised GeneDx from a "sell" rating to a "hold" rating in a research report on Saturday, August 8th. Zacks Research downgraded GeneDx from a "strong-buy" rating to a "hold" rating in a research note on Friday, October 9th. Weiss Ratings upgraded GeneDx from a "sell (e+)" rating to a "sell (d)" rating in a research note on Tuesday, August 4th. Finally, Guggenheim increased 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. Seven 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's stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $90.86.

GeneDx Trading Up 11.2%

The company's 50-day moving average is $80.50 and its 200-day moving average is $67.36. 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 $1.86 billion, a price-to-earnings ratio of -17.19 and a beta of 1.95.

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

Insider Buying and Selling at GeneDx

In other news, CEO Katherine Stueland sold 10,501 shares of the stock in a transaction on 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 transaction, the chief executive officer directly owned 115,476 shares in the company, valued at approximately $11,271,612.36. This represents a 8.34% decrease in their position. The transaction was disclosed in a document filed 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, CFO Kevin Feeley sold 3,728 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 $363,890.08. Following the sale, the chief financial officer directly 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. 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. In the last ninety days, insiders sold 19,206 shares of company stock worth $1,808,056. Corporate insiders own 25.17% of the company's stock.

Hedge Funds Weigh In On GeneDx

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. First Light Asset Management LLC raised its stake in GeneDx by 222.7% in the second quarter. First Light Asset Management LLC now owns 783,923 shares of the company's stock valued at $53,816,000 after buying an additional 540,996 shares in the last quarter. Amova Asset Management Americas Inc. grew its position in GeneDx by 67.3% in the 1st quarter. Amova Asset Management Americas Inc. now owns 638,800 shares of the company's stock valued at $41,024,000 after buying an additional 257,075 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. raised its holdings in GeneDx by 65.9% during the first quarter. Sumitomo Mitsui Trust Group Inc. now owns 633,457 shares of the company's stock worth $40,681,000 after purchasing an additional 251,732 shares in the last quarter. Assenagon Asset Management S.A. lifted its holdings in shares of GeneDx by 108.4% in the 3rd quarter. Assenagon Asset Management S.A. now owns 632,413 shares of the company's stock valued at $45,723,000 after buying an additional 328,980 shares during the period. Finally, Wellington Management Group LLP boosted its position in shares of GeneDx by 2.0% during the 2nd quarter. Wellington Management Group LLP now owns 347,927 shares of the company's stock worth $23,885,000 after purchasing an additional 6,922 shares in the last quarter. Hedge funds and other institutional investors own 61.72% of the company's stock.

About GeneDx

GeneDx Holdings Corp., doing business as GeneDx, is a genomic diagnostics company that provides genetic testing and interpretation services for patients with suspected rare and inherited conditions. The company combines sequencing technologies with clinical expertise and data analysis to help healthcare professionals identify genetic causes of disease and support diagnosis, treatment planning and patient management.

GeneDx's offerings include whole exome and whole genome sequencing, as well as targeted testing for specific genetic disorders and hereditary cancer conditions.

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