GeneDx (NASDAQ:WGS) Trading Up 4.2% - What's Next?

Key Points

• GeneDx shares rose 4.2% to $93.49 in midday trading, although volume was 86% below the average. The stock trades above its 50-day and 200-day moving averages.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $89.57. The latest quarterly results exceeded expectations, with earnings of $0.01 per share and revenue of $114.44 million.
• Institutional investors own 61.72% of GeneDx, while insiders own 25.17%. The CEO and CFO recently sold shares to cover tax obligations tied to vested equity awards.

GeneDx Holdings Corp. (NASDAQ:WGS - Get Free Report)'s share price rose 4.2% on Tuesday . The stock traded as high as $92.91 and last traded at $93.4860. 134,497 shares were traded during mid-day trading, a decline of 86% from the average daily volume of 931,665 shares. The stock had previously closed at $89.74.

Analyst Upgrades and Downgrades

WGS has been the subject of a number of recent analyst reports. Weiss Ratings raised shares of GeneDx from a "sell (e+)" rating to a "sell (d)" rating in a research note on Tuesday, August 4th. BTIG Research reissued a "buy" rating and set a $90.00 target price on shares of GeneDx in a research note on Tuesday, August 4th. TD Cowen restated a "buy" rating on shares of GeneDx in a 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. Finally, Piper Sandler reiterated an "overweight" rating and set a $63.00 price target (up from $50.00) on shares of GeneDx in a report on Tuesday, June 23rd. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $89.57.

GeneDx Price Performance

The company has a debt-to-equity ratio of 0.40, a current ratio of 3.30 and a quick ratio of 3.06. The stock has a market capitalization of $2.88 billion, a P/E ratio of -26.52 and a beta of 1.99. The stock's fifty day moving average is $75.09 and its 200-day moving average is $66.70.

GeneDx (NASDAQ:WGS - Get Free Report) last issued its quarterly earnings data 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. GeneDx had a negative net margin of 23.41% and a positive return on equity of 4.12%. The business had revenue of $114.44 million during the quarter, compared to analysts' expectations of $111.01 million. During the same period in the previous year, the company earned $0.36 earnings per share. On average, equities analysts anticipate that GeneDx Holdings Corp. will post -0.41 earnings per share for the current year.

Insider Buying and Selling

In related news, CFO Kevin Feeley sold 1,285 shares of the stock in a transaction that occurred on Wednesday, September 9th. The stock was sold at an average price of $84.22, for a total transaction of $108,222.70. Following the sale, the chief financial officer directly owned 41,476 shares in the company, valued at $3,493,108.72. This represents a 3.01% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Katherine Stueland sold 3,692 shares of the firm's stock in a transaction on Wednesday, September 9th. The shares were sold at an average price of $84.22, for a total value of $310,940.24. Following the completion of the sale, the chief executive officer owned 107,227 shares of the company's stock, valued at approximately $9,030,657.94. This trade represents a 3.33% 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. 25.17% of the stock is currently owned by insiders.

Institutional Investors Weigh In On GeneDx

A number of institutional investors and hedge funds have recently made changes to their positions in WGS. First Light Asset Management LLC lifted its stake in shares of GeneDx by 222.7% in the 2nd quarter. First Light Asset Management LLC now owns 783,923 shares of the company's stock valued at $53,816,000 after purchasing an additional 540,996 shares during the period. Nykredit A S bought a new stake in GeneDx in the second quarter worth approximately $38,000. Corient Private Wealth LP bought a new stake in GeneDx in the second quarter worth approximately $3,066,000. AlphaGrep UK Ltd acquired a new position in GeneDx in the second quarter valued at approximately $238,000. Finally, Wellington Management Group LLP lifted its stake in GeneDx by 2.0% in the second quarter. Wellington Management Group LLP now owns 347,927 shares of the company's stock valued at $23,885,000 after buying an additional 6,922 shares during the period. Institutional investors own 61.72% of the company's stock.

GeneDx Company Profile

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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