Veracyte (NASDAQ:VCYT) Stock Falls 5.7% - Time to Sell?

Key Points

• Veracyte shares fell 5.7% to $45.80, with trading volume 36% below the average, bringing the stock near its 50-day moving average.
• Analyst sentiment remains positive overall, with a “Moderate Buy” consensus and average price target of $55.78, though several firms recently lowered their targets and Morgan Stanley maintains an “underweight” rating.
• The company exceeded quarterly expectations, reporting $0.54 EPS versus $0.41 expected and $150.32 million in revenue, up 15.5% year over year; insiders sold 30,895 shares worth about $1.3 million during the last quarter.

Veracyte, Inc. (NASDAQ:VCYT - Get Free Report) fell 5.7% during trading on Friday. The stock traded as low as $46.38 and last traded at $45.7950. 720,563 shares changed hands during trading, a decline of 36% from the average daily volume of 1,126,967 shares. The stock had previously closed at $48.54.

Analyst Ratings Changes

Several research analysts have weighed in on the company. Morgan Stanley lowered their price target on Veracyte from $47.00 to $44.00 and set an "underweight" rating on the stock in a research report on Tuesday, August 4th. Piper Sandler lowered their target price on shares of Veracyte from $66.00 to $54.00 and set an "overweight" rating on the stock in a report on Tuesday, August 4th. Weiss Ratings raised shares of Veracyte from a "hold (c)" rating to a "hold (c+)" rating in a research report on Wednesday, September 9th. Canaccord Genuity Group decreased their price objective on shares of Veracyte from $60.00 to $50.00 and set a "hold" rating for the company in a research report on Monday, August 3rd. Finally, Guggenheim boosted their price objective on shares of Veracyte from $45.00 to $65.00 and gave the stock a "buy" rating in a research note on Monday, June 29th. Two analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $55.78.

Veracyte Stock Performance

The firm has a market capitalization of $3.67 billion, a price-to-earnings ratio of 32.37 and a beta of 1.93. The business has a fifty day moving average of $46.18 and a two-hundred day moving average of $43.78.

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

Insider Activity at Veracyte

In related news, EVP Annie Mcguire sold 3,254 shares of Veracyte stock in a transaction dated Friday, September 4th. The shares were sold at an average price of $43.09, for a total transaction of $140,214.86. Following the completion of the sale, the executive vice president owned 131,160 shares of the company's stock, valued at approximately $5,651,684.40. The trade was a 2.42% decrease in their position. The sale was disclosed in a filing with the SEC, 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, Director Jens Holstein sold 5,000 shares of the stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $40.95, for a total transaction of $204,750.00. Following the completion of the transaction, the director directly owned 27,471 shares in the company, valued at approximately $1,124,937.45. This represents a 15.40% 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. Insiders have sold a total of 30,895 shares of company stock worth $1,307,448 in the last quarter. 1.60% of the stock is owned by corporate insiders.

Institutional Trading of Veracyte

Hedge funds have recently added to or reduced their stakes in the company. GAMMA Investing LLC boosted its holdings in Veracyte by 21.2% during 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. Allworth Financial LP raised its holdings in shares of 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 purchasing an additional 541 shares during the last quarter. Integrated Wealth Concepts LLC purchased a new stake in shares of Veracyte in the second quarter valued at about $44,000. Assetmark Inc. lifted its position in shares of Veracyte by 34.4% during the first quarter. Assetmark Inc. now owns 2,968 shares of the biotechnology company's stock valued at $96,000 after purchasing an additional 760 shares in the last quarter. Finally, Northwestern Mutual Wealth Management Co. bought a new position in shares of Veracyte during the second quarter valued at about $62,000.

About Veracyte

Veracyte, Inc is a diagnostics company that develops and commercializes genomic tests designed to help physicians diagnose cancer, assess disease risk and guide treatment decisions. The company combines genomic data with bioinformatics and machine-learning technologies to provide clinically actionable information from patient tissue samples.

Veracyte's portfolio includes Afirma tests for evaluating thyroid nodules, Decipher tests for assessing the risk and biological characteristics of prostate cancer, and Prosigna for classifying and evaluating recurrence risk in certain breast cancers.

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