GeneDx (NASDAQ:WGS) Stock Jumps 5.7% - Here's Why

Key Points

• GeneDx shares rose 5.7% to $66.31 in Wednesday trading, though volume was sharply below average.
• Analyst sentiment remains broadly positive: Canaccord Genuity and BTIG set $90 price targets, while the nine-analyst consensus is a “Moderate Buy” with a $90.86 target.
• GeneDx exceeded quarterly expectations, reporting $0.01 EPS versus a projected $0.19 loss and revenue of $114.44 million versus the $111.01 million estimate.

Shares of GeneDx Holdings Corp. (NASDAQ:WGS - Get Free Report) rose 5.7% during trading on Wednesday. The stock traded as high as $66.74 and last traded at $66.31. 20,653 shares were traded during mid-day trading, a decline of 98% from the average session volume of 921,570 shares. The stock had previously closed at $62.74.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on WGS. Canaccord Genuity Group increased their price target on GeneDx from $75.00 to $90.00 and gave the stock a "buy" rating in a research note on Tuesday, August 4th. Weiss Ratings upgraded GeneDx from a "sell (e+)" rating to a "sell (d)" rating in a research note on Tuesday, August 4th. TD Cowen reiterated a "buy" rating on shares of GeneDx in a report on Wednesday, July 15th. BTIG Research reissued a "buy" rating and set a $90.00 price objective on shares of GeneDx in a research note on Tuesday, August 4th. Finally, Wall Street Zen raised shares of GeneDx from a "sell" rating to a "hold" rating in a research note on Saturday, August 8th. 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 stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $90.86.

GeneDx Price Performance

The stock's fifty day simple moving average is $79.72 and its 200-day simple moving average is $73.27. The stock has a market cap of $1.99 billion, a P/E ratio of -18.35 and a beta of 1.95.

GeneDx (NASDAQ:WGS - Get Free Report) last announced its quarterly earnings results on Monday, August 3rd. The company reported $0.01 earnings per share for the quarter, topping analysts' consensus estimates of ($0.19) by $0.20. The company had revenue of $114.44 million for the quarter, compared to analyst estimates of $111.01 million. During the same quarter in the previous year, the company posted $0.36 earnings per share. Analysts forecast that GeneDx Holdings Corp. will post -0.41 EPS for the current year.

Insider Transactions at GeneDx

In related news, CFO Kevin Feeley sold 3,728 shares of the stock in a transaction that occurred on 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 transaction, the chief financial officer directly owned 44,945 shares of the company's stock, valued at $4,387,081.45. This represents a 7.66% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 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 stock in a transaction dated Wednesday, September 16th. The shares were 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 owned 115,476 shares of the company's stock, valued at $11,271,612.36. This represents a 8.34% decrease in their position. 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 ninety days, insiders sold 19,206 shares of company stock worth $1,808,056. Corporate insiders own 25.17% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in WGS. Fifth Third Bancorp bought a new position in GeneDx during the 1st quarter valued at $31,000. Nykredit A S acquired a new stake in shares of GeneDx in the second quarter valued at $38,000. OP Asset Management Ltd acquired a new stake in shares of GeneDx in the first quarter valued at $45,000. Sterling Capital Management LLC lifted its holdings in shares of GeneDx by 851.4% in the third quarter. Sterling Capital Management LLC now owns 666 shares of the company's stock valued at $48,000 after buying an additional 596 shares during the period. Finally, Strs Ohio boosted its stake in GeneDx by 8.7% during the first quarter. Strs Ohio now owns 2,500 shares of the company's stock valued at $161,000 after buying an additional 200 shares in the last quarter. Institutional investors and hedge funds own 61.72% of the company's stock.

GeneDx Company Profile

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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