Veracyte (NASDAQ:VCYT) Stock Falls 4.3% - Should You Sell?

Key Points

• Veracyte shares fell 4.3% to $45.63 in light trading, while the stock remained near its 50-day and 200-day moving averages of roughly $44.50.
• Analyst sentiment remains positive overall, with a “Moderate Buy” consensus and an average price target of $55.78, although targets range from $44 to $65 and include one Sell rating.
• The company recently exceeded quarterly expectations, reporting $0.54 in EPS versus $0.41 expected and $150.32 million in revenue, up 15.5% year over year. Insiders sold shares under pre-arranged plans primarily to cover tax obligations.

Shares of Veracyte, Inc. (NASDAQ:VCYT - Get Free Report) traded down 4.3% during mid-day trading on Tuesday. The stock traded as low as $47.34 and last traded at $45.6250. Approximately 155,956 shares were traded during trading, a decline of 86% from the average session volume of 1,134,686 shares. The stock had previously closed at $47.67.

Analysts Set New Price Targets

Several analysts recently weighed in on VCYT shares. Guggenheim lifted their target price on shares of Veracyte from $45.00 to $65.00 and gave the company a "buy" rating in a report on Monday, June 29th. Morgan Stanley reduced their target price on shares of Veracyte from $47.00 to $44.00 and set an "underweight" rating on the stock in a report on Tuesday, August 4th. Canaccord Genuity Group lowered their price target on shares of Veracyte from $60.00 to $50.00 and set a "hold" rating for the company in a report on Monday, August 3rd. Wall Street Zen raised shares of Veracyte from a "buy" rating to a "strong-buy" rating in a research report on Sunday, July 12th. Finally, Weiss Ratings downgraded shares of Veracyte from a "hold (c+)" rating to a "hold (c)" rating in a research note on Thursday, September 24th. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Veracyte has an average rating of "Moderate Buy" and an average price target of $55.78.

Veracyte Stock Down 6.0%

The company has a fifty day moving average of $44.50 and a two-hundred day moving average of $44.43. The stock has a market capitalization of $3.60 billion, a price-to-earnings ratio of 31.70 and a beta of 1.95.

Veracyte (NASDAQ:VCYT - Get Free Report) last released its earnings results on Thursday, July 30th. The biotechnology company reported $0.54 EPS for the quarter, topping the consensus estimate of $0.41 by $0.13. The company had revenue of $150.32 million during the quarter, compared to analysts' expectations of $144.59 million. Veracyte had a net margin of 20.37% and a return on equity of 9.26%. The business's revenue was up 15.5% on a year-over-year basis. During the same quarter last year, the business earned $0.44 EPS. Equities analysts anticipate that Veracyte, Inc. will post 1.32 earnings per share for the current fiscal year.

Insider Activity at Veracyte

In other Veracyte news, CFO Rebecca Chambers sold 3,652 shares of the company's stock in a transaction on Friday, September 4th. The stock was sold at an average price of $43.10, for a total value of $157,401.20. Following the sale, the chief financial officer owned 166,025 shares of the company's stock, valued at approximately $7,155,677.50. This represents a 2.15% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Phillip G. Febbo sold 13,110 shares of the stock in a transaction dated Friday, September 4th. The shares were sold at an average price of $43.05, for a total transaction of $564,385.50. Following the completion of the sale, the insider directly owned 133,048 shares in the company, valued at approximately $5,727,716.40. The trade was a 8.97% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders sold 30,895 shares of company stock worth $1,307,448. 1.60% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. GAMMA Investing LLC increased its holdings in Veracyte by 21.2% in the second quarter. GAMMA Investing LLC now owns 1,121 shares of the biotechnology company's stock worth $66,000 after buying an additional 196 shares during the last quarter. Allworth Financial LP lifted its stake in Veracyte by 178.0% in the second quarter. Allworth Financial LP now owns 845 shares of the biotechnology company's stock valued at $50,000 after acquiring an additional 541 shares during the last quarter. Integrated Wealth Concepts LLC bought a new stake in Veracyte in the second quarter worth approximately $44,000. Assetmark Inc. grew its position in Veracyte by 34.4% in the first quarter. Assetmark Inc. now owns 2,968 shares of the biotechnology company's stock worth $96,000 after acquiring an additional 760 shares in the last quarter. Finally, Northwestern Mutual Wealth Management Co. acquired a new position in shares of Veracyte during the 2nd quarter worth $62,000.

Veracyte Company Profile

Veracyte, Inc is a diagnostic company that develops and commercializes genomic tests designed to help physicians diagnose cancer, assess disease risk and guide treatment decisions. Its tests analyze genetic information from patient samples and are intended to provide more precise answers than traditional diagnostic methods alone.

The company's portfolio includes Afirma genomic tests for thyroid nodules, Decipher tests for prostate cancer, Percepta tests for lung cancer and Envisio tests that support the evaluation of certain lung nodules.

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