SOPHiA GENETICS (NASDAQ:SOPH) Shares Down 8.3% - Time to Sell?

Key Points

• SOPHiA GENETICS shares fell 8.3% to about $7.67 on unusually heavy trading volume, though the stock remains above its 50-day and 200-day moving averages.
• Analyst sentiment is mixed: three analysts rate the stock Buy, one Hold and one Sell, producing a consensus Hold rating with a $10 average price target. Recent targets were raised by BTIG Research and HC Wainwright.
• The company exceeded quarterly revenue expectations but missed on EPS, reporting a $0.26 loss per share versus a projected $0.21 loss; it also posted deeply negative margins and return on equity, while insiders have sold shares in recent months.

SOPHiA GENETICS SA (NASDAQ:SOPH - Get Free Report) dropped 8.3% during trading on Wednesday . The stock traded as low as $7.69 and last traded at $7.6670. Approximately 591,292 shares were traded during trading, an increase of 128% from the average session volume of 259,581 shares. The stock had previously closed at $8.36.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on SOPH. BTIG Research lifted their price objective on shares of SOPHiA GENETICS from $8.00 to $9.00 and gave the company a "buy" rating in a research report on Wednesday, August 5th. HC Wainwright boosted their price target on SOPHiA GENETICS from $12.00 to $14.00 and gave the stock a "buy" rating in a research report on Wednesday, August 5th. Zacks Research raised SOPHiA GENETICS to a "hold" rating in a research report on Tuesday, July 21st. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of SOPHiA GENETICS in a report on Friday, July 17th. Three 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 MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $10.00.

SOPHiA GENETICS Trading Down 8.3%

The company has a debt-to-equity ratio of 0.58, a current ratio of 2.69 and a quick ratio of 2.55. The business's 50-day moving average is $6.89 and its 200 day moving average is $5.63. The firm has a market capitalization of $643.39 million, a P/E ratio of -6.69 and a beta of 0.98.

SOPHiA GENETICS (NASDAQ:SOPH - Get Free Report) last released its earnings results on Wednesday, August 5th. The company reported ($0.26) EPS for the quarter, missing the consensus estimate of ($0.21) by ($0.05). SOPHiA GENETICS had a negative net margin of 93.86% and a negative return on equity of 132.47%. The firm had revenue of $23.31 million during the quarter, compared to the consensus estimate of $21.72 million. As a group, analysts anticipate that SOPHiA GENETICS SA will post -0.77 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider Zhenyu Xu sold 17,000 shares of the firm's stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $7.29, for a total value of $123,930.00. Following the sale, the insider directly owned 590,887 shares of the company's stock, valued at $4,307,566.23. This trade represents a 2.80% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Jurgi Camblong sold 50,069 shares of the firm's stock in a transaction that occurred on Friday, June 26th. The shares were sold at an average price of $5.80, for a total transaction of $290,400.20. Following the completion of the sale, the chief executive officer owned 3,601,493 shares in the company, valued at approximately $20,888,659.40. The trade was a 1.37% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 336,342 shares of company stock valued at $2,154,775 in the last three months. 4.88% of the stock is owned by insiders.

Institutional Investors Weigh In On SOPHiA GENETICS

Hedge funds and other institutional investors have recently bought and sold shares of the company. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in SOPHiA GENETICS by 246.9% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 7,632,871 shares of the company's stock valued at $25,341,000 after purchasing an additional 5,432,871 shares during the last quarter. Akre Capital Management LLC boosted its position in SOPHiA GENETICS by 66.2% during the 2nd quarter. Akre Capital Management LLC now owns 3,719,140 shares of the company's stock worth $11,529,000 after buying an additional 1,481,636 shares during the period. AWM Investment Company Inc. bought a new stake in SOPHiA GENETICS during the 2nd quarter worth approximately $9,809,000. Principal Financial Group Inc. increased its position in SOPHiA GENETICS by 0.7% in the 1st quarter. Principal Financial Group Inc. now owns 1,409,242 shares of the company's stock valued at $6,976,000 after acquiring an additional 9,800 shares during the period. Finally, Archon Capital Management LLC increased its position in SOPHiA GENETICS by 3.4% in the 4th quarter. Archon Capital Management LLC now owns 441,413 shares of the company's stock valued at $2,061,000 after acquiring an additional 14,342 shares during the period. Institutional investors own 31.59% of the company's stock.

SOPHiA GENETICS Company Profile

SOPHiA GENETICS SA is a data-driven medicine company founded in 2011 and headquartered in La Tène, Switzerland. The firm develops and operates a cloud-native software platform designed to standardize and analyze complex genomic and radiomic data. Its core offering, the SOPHiA DDM™ platform, leverages artificial intelligence and machine learning algorithms to help healthcare institutions, laboratories and biopharmaceutical partners derive actionable insights from next-generation sequencing and medical imaging datasets.

The SOPHiA DDM™ platform supports a range of clinical applications, including oncology, hereditary diseases and rare genetic disorders.

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