GeneDx (NASDAQ:WGS) Stock Price Down 6.1% - What's Next?

Key Points

• GeneDx shares fell 6.1% to approximately $71.60, with trading volume down 89% from the average session. The company’s market capitalization is about $2.13 billion.
• Analyst sentiment remains positive overall: GeneDx has a consensus “Moderate Buy” rating and an average price target of $90.86, with recent targets ranging from $63 to $90.
• GeneDx beat quarterly expectations, reporting adjusted EPS of $0.01 versus consensus of a $0.19 loss and revenue of $114.44 million. However, the company remains unprofitable, with a negative net margin, and insiders sold shares primarily to cover tax obligations tied to equity awards.

GeneDx Holdings Corp. (NASDAQ:WGS - Get Free Report) shares traded down 6.1% during trading on Tuesday. The stock traded as low as $72.04 and last traded at $71.6040. Approximately 99,024 shares changed hands during trading, a decline of 89% from the average session volume of 930,062 shares. The stock had previously closed at $76.27.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on WGS. Zacks Research raised shares of GeneDx from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, August 26th. Guggenheim increased their price target on GeneDx from $74.00 to $83.00 and gave the stock a "buy" rating in a report on Thursday, October 1st. Piper Sandler reiterated an "overweight" rating and issued a $63.00 price target (up from $50.00) on shares of GeneDx in a report on Tuesday, June 23rd. Weiss Ratings raised shares of GeneDx from a "sell (e+)" rating to a "sell (d)" rating in a research report on Tuesday, August 4th. Finally, BTIG Research reissued a "buy" rating and issued a $90.00 price target on shares of GeneDx in a research note on Tuesday, August 4th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $90.86.

GeneDx Stock Down 6.4%

The firm has a market capitalization of $2.13 billion, a P/E ratio of -19.48 and a beta of 1.95. The firm's 50 day moving average is $82.12 and its two-hundred day moving average is $67.32. The company has a debt-to-equity ratio of 0.40, a current ratio of 3.30 and a quick ratio of 3.06.

GeneDx (NASDAQ:WGS - Get Free Report) last announced its quarterly earnings data on Monday, August 3rd. The company reported $0.01 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 company had revenue of $114.44 million during the quarter, compared to the consensus estimate of $111.01 million. During the same quarter last year, the firm posted $0.36 EPS. Research analysts predict that GeneDx Holdings Corp. will post -0.41 EPS for the current year.

Insider Buying and Selling

In other GeneDx news, CFO Kevin Feeley sold 3,728 shares of GeneDx stock in a transaction on Wednesday, September 16th. The shares were sold at an average price of $97.61, for a total transaction 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. The trade was a 7.66% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available 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 GeneDx stock in a transaction dated 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 sale, the chief executive officer directly owned 115,476 shares of the company's stock, valued at $11,271,612.36. The trade was a 8.34% decrease in their position. 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. Insiders have sold a total of 19,206 shares of company stock worth $1,808,056 over the last three months. 25.17% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in WGS. Fifth Third Bancorp acquired a new position in shares of GeneDx in the first quarter valued at about $31,000. Nykredit A S acquired a new stake in shares of GeneDx during the 2nd quarter worth $38,000. OP Asset Management Ltd acquired a new position in GeneDx in the first quarter valued at about $45,000. Caitong International Asset Management Co. Ltd raised its position 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 in the last quarter. Finally, Strs Ohio lifted its holdings in shares of GeneDx by 8.7% during the 1st 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. Institutional investors own 61.72% of the company's stock.

GeneDx Company Profile

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.

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