Veracyte (NASDAQ:VCYT) Sets New 1-Year Low Following Analyst Downgrade

Key Points

• Veracyte hit a new 52-week low, falling to $23.12 after Needham cut its price target from $69 to $46, while keeping a Buy rating.
• Analyst views remain mixed: the article reports a consensus Moderate Buy rating and average price target of $51.40, alongside other target cuts and one downgrade to Hold.
• Recent results were stronger than expected: quarterly adjusted EPS was $0.51 versus a $0.41 consensus, revenue reached $151.8 million and grew 15.1% year over year, and the company authorized a $100 million share repurchase program.

Veracyte, Inc. (NASDAQ:VCYT - Get Free Report)'s stock price reached a new 52-week low on Thursday after Needham & Company LLC lowered their price target on the stock from $69.00 to $46.00. Needham & Company LLC currently has a buy rating on the stock. Veracyte traded as low as $23.12 and last traded at $23.6260, with a volume of 2,106,529 shares. The stock had previously closed at $52.52.

VCYT has been the topic of a number of other research reports. Stephens cut their target price on Veracyte from $68.00 to $55.00 and set an "overweight" rating on the stock in a research report on Tuesday, August 4th. Zacks Research lowered Veracyte from a "strong-buy" rating to a "hold" rating in a research report on Friday, October 2nd. Piper Sandler dropped their price objective on Veracyte from $66.00 to $54.00 and set an "overweight" rating for the company in a research note on Tuesday, August 4th. Morgan Stanley cut their price objective on Veracyte from $47.00 to $44.00 and set an "underweight" rating on the stock in a report on Tuesday, August 4th. Finally, UBS Group increased their target price on Veracyte from $52.00 to $65.00 and gave the stock a "buy" rating in a research note on Wednesday, September 9th. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $51.40.

Insider Activity at Veracyte

In other Veracyte news, Director Muna Bhanji sold 1,864 shares of the stock in a transaction dated Monday, October 19th. The stock was sold at an average price of $43.70, for a total value of $81,456.80. Following the sale, the director owned 40,854 shares of the company's stock, valued at $1,785,319.80. This trade represents a 4.36% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider John Leite sold 4,015 shares of Veracyte stock in a transaction dated Monday, September 21st. The shares were sold at an average price of $40.00, for a total value of $160,600.00. Following the completion of the transaction, the insider owned 124,329 shares of the company's stock, valued at $4,973,160. The trade was a 3.13% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 62,609 shares of company stock worth $2,858,904 over the last quarter. 1.60% of the stock is currently owned by insiders.

Key Veracyte News

Here are the key news stories impacting Veracyte this week:

• Positive Sentiment: Veracyte reported Q3 adjusted EPS of $0.51, above the roughly $0.41–$0.44 consensus, and revenue of $151.8 million, ahead of expectations. Revenue grew 15% year over year; the earnings-call coverage also highlighted strength in Afirma. The beat and growth may support investor confidence. Veracyte Announces Third Quarter 2026 Financial Results Q3 2026 Earnings Call Highlights
• Positive Sentiment: The company authorized a $100 million share repurchase program, which may signal management confidence and provide support for the stock. Veracyte authorizes a buyback plan
• Neutral Sentiment: A separate report put the average analyst price target at $55.78, but that figure may not reflect the latest target reduction. Veracyte stock average price target
• Negative Sentiment: Leerink Partners downgraded VCYT from “outperform” to “market perform” and cut its target from $55 to $35. The lower rating and target suggest concern about further upside and could temper the positive reaction to earnings. Leerink Partners rating

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new stake in shares of Veracyte during the 2nd quarter worth approximately $792,058,000. Dimensional Fund Advisors LP boosted its holdings in shares of Veracyte by 2.9% in the 1st quarter. Dimensional Fund Advisors LP now owns 2,881,090 shares of the biotechnology company's stock valued at $92,787,000 after buying an additional 80,614 shares in the last quarter. Congress Asset Management Co. purchased a new position in shares of Veracyte in the 3rd quarter valued at $89,971,000. William Blair Investment Management LLC purchased a new position in shares of Veracyte in the 2nd quarter valued at $84,078,000. Finally, First Trust Advisors LP grew its position in shares of Veracyte by 64.9% in the 1st quarter. First Trust Advisors LP now owns 2,117,046 shares of the biotechnology company's stock valued at $68,190,000 after buying an additional 833,543 shares during the last quarter.

Veracyte Trading Down 55.0%

The company's 50 day moving average is $44.90 and its 200 day moving average is $43.04. The stock has a market capitalization of $1.90 billion, a price-to-earnings ratio of 16.74 and a beta of 1.98.

Veracyte (NASDAQ:VCYT - Get Free Report) last announced its quarterly earnings results on Wednesday, November 4th. The biotechnology company reported $0.51 earnings per share for the quarter, beating analysts' consensus estimates of $0.41 by $0.10. Veracyte had a net margin of 20.37% and a return on equity of 9.26%. The firm had revenue of $151.75 million during the quarter, compared to analysts' expectations of $147.13 million. During the same period in the previous year, the company earned $0.51 earnings per share. Veracyte's quarterly revenue was up 15.1% compared to the same quarter last year. Analysts anticipate that Veracyte, Inc. will post 1.32 EPS for the current fiscal year.

Veracyte Company Profile

Veracyte, Inc is a diagnostics company that develops genomic tests to help physicians diagnose cancer, assess disease risk and guide treatment decisions. Its tests are designed to provide additional molecular information from patient samples, often helping reduce uncertainty and support more personalized care.

The company's portfolio includes Afirma tests for thyroid nodules, Decipher tests for prostate cancer, Percepta tests for lung cancer and Envisio tests for breast cancer. Veracyte also develops and commercializes additional genomic assays intended for use across various cancer types and clinical settings.

Founded in 2008 and headquartered in South San Francisco, California, Veracyte primarily serves the U.S.

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