GeneDx (NASDAQ:WGS) Stock Price Up 7.9% - Here's Why

Key Points

• GeneDx shares rose 7.9% to approximately $91.93 in mid-day trading, with the stock’s consensus analyst rating at “Moderate Buy” and an average price target of $89.57.
• The company beat quarterly expectations, reporting $0.01 in adjusted EPS versus the expected $0.19 loss and revenue of $114.44 million, above the $111.01 million consensus estimate. GeneDx remains unprofitable, with analysts forecasting a full-year loss of $0.41 per share.
• Executives sold shares totaling about $1.81 million over the past 90 days to cover tax obligations from vested equity awards, while institutional investors own 61.72% of the company.

GeneDx Holdings Corp. (NASDAQ:WGS - Get Free Report) was up 7.9% during mid-day trading on Thursday . The company traded as high as $88.26 and last traded at $91.9330. 171,317 shares traded hands during mid-day trading, a decline of 82% from the average daily volume of 932,428 shares. The stock had previously closed at $85.20.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on WGS shares. Piper Sandler restated an "overweight" rating and set a $63.00 price target (up from $50.00) on shares of GeneDx in a research report on Tuesday, June 23rd. TD Cowen reissued a "buy" rating on shares of GeneDx in a research note on Wednesday, July 15th. Canaccord Genuity Group lifted their target price on GeneDx from $75.00 to $90.00 and gave the company a "buy" rating in a research report on Tuesday, August 4th. Weiss Ratings upgraded shares of GeneDx from a "sell (e+)" rating to a "sell (d)" rating in a research note on Tuesday, August 4th. Finally, Zacks Research raised shares of GeneDx from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, August 26th. 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 stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $89.57.

GeneDx Trading Up 3.5%

The company's fifty day moving average is $79.35 and its two-hundred day moving average is $67.54. 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 cap of $2.63 billion, a price-to-earnings ratio of -24.31 and a beta of 1.99.

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. The company had revenue of $114.44 million for the quarter, compared to the consensus estimate 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 period in the prior year, the firm posted $0.36 EPS. On average, research analysts predict that GeneDx Holdings Corp. will post -0.41 EPS for the current fiscal year.

Insider Transactions at GeneDx

In other news, 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 transaction of $363,890.08. Following 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 Securities & Exchange Commission, which is accessible 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 business's 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 $1,025,002.61. Following the sale, the chief executive officer owned 115,476 shares of the company's stock, valued at approximately $11,271,612.36. The trade was a 8.34% decrease in their position. The SEC filing for this sale provides additional information. 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 valued at $1,808,056 over the last ninety days. 25.17% of the stock is owned by company insiders.

Institutional Trading of GeneDx

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Fifth Third Bancorp acquired a new position in shares of GeneDx in the 1st quarter valued at $31,000. Ramirez Asset Management Inc. purchased a new stake in GeneDx in the fourth quarter valued at $33,000. Nykredit A S purchased a new stake in GeneDx in the second quarter valued at $38,000. OP Asset Management Ltd acquired a new position in GeneDx in the first quarter valued at $45,000. Finally, Caitong International Asset Management Co. Ltd boosted its stake in GeneDx by 3,704.5% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 837 shares of the company's stock valued at $109,000 after acquiring an additional 815 shares in the last quarter. Institutional investors and hedge funds own 61.72% of the company's stock.

About GeneDx

GeneDx Holdings Corp., doing business as GeneDx, is a healthcare company focused on genetic testing and genomic diagnostics. The company provides testing designed to help healthcare professionals diagnose rare and inherited conditions, guide clinical management, and support research into genetic disease.

Its offerings include whole exome and whole genome sequencing, targeted genetic tests, chromosomal microarray analysis, and other tests used to identify disease-causing genetic variants.

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