Veracyte (NASDAQ:VCYT) Share Price Breaks Below 200-Day Moving Average After Analyst Downgrade

Key Points

• Veracyte shares fell below their 200-day moving average, trading as low as $21.91 and last at $24, after Needham cut its price target from $69 to $46 while maintaining a Buy rating.
• Despite a third-quarter earnings beat—adjusted EPS of $0.51 and revenue up 15% to $151.8 million—investor concerns over a lowered outlook and changes affecting the Afirma test weighed on the stock.
• Analysts have lowered targets and ratings, though MarketBeat’s consensus remains “Moderate Buy” with an average $51.40 target; Veracyte also announced a $100 million share repurchase program.

Shares of Veracyte, Inc. (NASDAQ:VCYT - Get Free Report) passed below its two hundred day moving average during trading on Thursday after Needham & Company LLC lowered their price target on the stock from $69.00 to $46.00. The stock has a two hundred day moving average of $42.95 and traded as low as $21.91. Needham & Company LLC currently has a buy rating on the stock. Veracyte shares last traded at $24.00, with a volume of 14,974,870 shares traded.

Other research analysts also recently issued reports about the stock. Morgan Stanley reduced their target price on shares of Veracyte from $47.00 to $44.00 and set an "underweight" rating for the company in a research report on Tuesday, August 4th. Zacks Research cut shares of Veracyte from a "strong-buy" rating to a "hold" rating in a report on Friday, October 2nd. Wall Street Zen downgraded Veracyte from a "strong-buy" rating to a "buy" rating in a research note on Saturday, October 10th. Piper Sandler reduced their price objective on Veracyte from $66.00 to $54.00 and set an "overweight" rating for the company in a report on Tuesday, August 4th. Finally, Stephens reduced their price objective on Veracyte from $68.00 to $55.00 and set an "overweight" rating for the company in a report on Tuesday, August 4th. One equities 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 stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $51.40.

Insider Activity at Veracyte

In related news, Director Jens Holstein sold 7,500 shares of Veracyte stock in a transaction that occurred on Tuesday, October 27th. The shares were sold at an average price of $50.00, for a total value of $375,000.00. Following the completion of the transaction, the director directly owned 27,471 shares in the company, valued at approximately $1,373,550. The trade was a 21.45% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider John Leite sold 4,015 shares of the business's stock in a transaction on Monday, September 21st. The shares were sold at an average price of $40.00, for a total transaction of $160,600.00. Following the sale, the insider directly owned 124,329 shares in the company, 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 sold a total of 62,609 shares of company stock worth $2,858,904 in the last ninety days. Insiders own 1.60% of the company's stock.

Veracyte News Summary

Here are the key news stories impacting Veracyte this week:

• Positive Sentiment: Third-quarter adjusted EPS of $0.51 beat analyst estimates of about $0.41, while revenue rose 15% year over year to $151.8 million, also topping expectations. Veracyte Q3 2026 results
• Positive Sentiment: The company announced a $100 million share repurchase program, which may provide some support for shares. Veracyte Q3 2026 results
• Negative Sentiment: The main pressure is a cut to the company’s outlook and a major shift affecting Afirma, its best-selling test. Investors appear concerned about the implications for future performance, overshadowing the quarterly earnings beat. Analysis of Veracyte’s decline
• Negative Sentiment: Leerink Partners downgraded VCYT to Market Perform from Outperform and cut its price target to $35 from $55. Needham also lowered its target, to $46 from $69, although it maintained a Buy rating. Leerink downgrade
• Negative Sentiment: Ademi LLP said it is investigating potential securities-fraud claims against Veracyte. The announcement adds a legal overhang, but an investigation is not a finding of wrongdoing. Shareholder investigation announcement

Hedge Funds Weigh In On Veracyte

Several hedge funds have recently made changes to their positions in the stock. Integrated Wealth Concepts LLC bought a new position in Veracyte during the second quarter valued at approximately $44,000. Allworth Financial LP purchased a new position in shares of Veracyte during the second quarter worth approximately $50,000. Northwestern Mutual Wealth Management Co. bought a new stake in shares of Veracyte in the 2nd quarter worth approximately $62,000. GAMMA Investing LLC lifted its holdings in shares of Veracyte by 21.2% in the 2nd quarter. GAMMA Investing LLC now owns 1,121 shares of the biotechnology company's stock worth $66,000 after acquiring an additional 196 shares during the last quarter. Finally, Rockefeller Capital Management L.P. lifted its holdings in shares of Veracyte by 197.4% in the 4th quarter. Rockefeller Capital Management L.P. now owns 1,719 shares of the biotechnology company's stock worth $72,000 after acquiring an additional 1,141 shares during the last quarter.

Veracyte Stock Performance

The company has a market cap of $1.93 billion, a PE ratio of 15.48 and a beta of 1.98. The stock's 50 day moving average price is $44.49 and its 200-day moving average price is $42.95.

Veracyte (NASDAQ:VCYT - Get Free Report) last released its earnings results on Wednesday, November 4th. The biotechnology company reported $0.51 EPS for the quarter, beating the consensus estimate of $0.41 by $0.10. The company had revenue of $151.75 million for the quarter, compared to analyst estimates of $147.13 million. Veracyte had a net margin of 21.80% and a return on equity of 9.13%. The firm's quarterly revenue was up 15.1% compared to the same quarter last year. During the same quarter last year, the firm earned $0.51 EPS. On average, analysts anticipate that Veracyte, Inc. will post 1.32 EPS for the current year.

About Veracyte

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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