Veracyte (NASDAQ:VCYT) Stock Price Breaks Below 200 Day Moving Average - Should You Sell?

Key Points

• Veracyte shares fell below their 200-day moving average, trading as low as $43.45 versus the $45.25 average, signaling potential technical weakness.
• Analyst sentiment remains broadly positive: the stock has a “Moderate Buy” consensus rating and a $55.78 average price target, despite mixed changes to individual ratings and targets.
• The company reported better-than-expected quarterly results, with earnings of $0.54 per share and revenue of $150.32 million, while revenue increased 15.5% year over year.

Veracyte, Inc. (NASDAQ:VCYT - Get Free Report)'s share price crossed below its 200-day moving average during trading on Monday. The stock has a 200-day moving average of $45.25 and traded as low as $43.45. Veracyte shares last traded at $43.80, with a volume of 725,427 shares.

Analyst Ratings Changes

Several analysts recently issued reports on VCYT shares. Wall Street Zen cut Veracyte from a "strong-buy" rating to a "buy" rating in a research note on Saturday, October 10th. Guggenheim upped their price target on Veracyte from $45.00 to $65.00 and gave the company a "buy" rating in a research report on Monday, June 29th. Morgan Stanley dropped their price objective on Veracyte from $47.00 to $44.00 and set an "underweight" rating for the company in a report on Tuesday, August 4th. UBS Group lifted their price objective on Veracyte from $52.00 to $65.00 and gave the stock a "buy" rating in a research report on Wednesday, September 9th. Finally, Needham & Company LLC reiterated a "buy" rating on shares of Veracyte in a research report on Tuesday, September 15th. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $55.78.

Veracyte Stock Performance

The stock has a market cap of $3.52 billion, a P/E ratio of 31.06 and a beta of 1.95. The firm has a 50-day moving average price of $43.39 and a 200-day moving average price of $45.25.

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

Insider Buying and Selling at Veracyte

In other news, Director Jens Holstein sold 5,000 shares of the company's stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $40.95, for a total value of $204,750.00. Following the sale, the director directly owned 27,471 shares of the company's stock, valued at $1,124,937.45. This represents a 15.40% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Annie Mcguire sold 3,254 shares of the company's stock in a transaction dated Friday, September 4th. The stock was 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 directly owned 131,160 shares in the company, valued at $5,651,684.40. This represents a 2.42% 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 three months, insiders have sold 30,895 shares of company stock valued at $1,307,448. Company insiders own 1.60% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. Integrated Wealth Concepts LLC bought a new stake in Veracyte during the second quarter worth about $44,000. Allworth Financial LP bought a new position in shares of Veracyte during the second quarter valued at approximately $50,000. Northwestern Mutual Wealth Management Co. bought a new position in shares of Veracyte during the second quarter valued at approximately $62,000. GAMMA Investing LLC increased its stake in shares of Veracyte by 21.2% during the second quarter. GAMMA Investing LLC now owns 1,121 shares of the biotechnology company's stock valued at $66,000 after purchasing an additional 196 shares in the last quarter. Finally, Rockefeller Capital Management L.P. lifted its holdings in shares of Veracyte by 197.4% during the fourth quarter. Rockefeller Capital Management L.P. now owns 1,719 shares of the biotechnology company's stock valued at $72,000 after purchasing an additional 1,141 shares during the last quarter.

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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