SOPHiA GENETICS (NASDAQ:SOPH) Shares Up 10.5% - Here's Why

Key Points

• SOPHiA GENETICS shares rose 10.5% to about $6.29 in midday trading, although volume was 73% below the average daily level.
• Analyst views remain mixed: three rate the stock Buy, one Hold and one Sell. The consensus rating is Hold with a $9.00 price target, while individual targets range from $8 to $12.
• The company exceeded quarterly revenue expectations with $23.31 million but reported an adjusted loss of $0.30 per share, missing estimates. Profitability remains weak, with a negative net margin of 44.48%, while insiders have sold 221,092 shares worth about $1.25 million over the past 90 days.

Shares of SOPHiA GENETICS SA (NASDAQ:SOPH - Get Free Report) rose 10.5% during mid-day trading on Tuesday . The company traded as high as $6.19 and last traded at $6.2890. 54,810 shares changed hands during trading, a decline of 73% from the average daily volume of 199,691 shares. The stock had previously closed at $5.69.

Analysts Set New Price Targets

A number of analysts have weighed in on the stock. BTIG Research reaffirmed a "buy" rating and set a $8.00 target price on shares of SOPHiA GENETICS in a research note on Monday, June 15th. Zacks Research upgraded SOPHiA GENETICS to a "hold" rating in a research note on Tuesday, July 21st. HC Wainwright initiated coverage on SOPHiA GENETICS in a report on Monday, July 20th. They set a "buy" rating and a $12.00 price objective on the stock. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of SOPHiA GENETICS in a research report on Friday, July 17th. Three analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $9.00.

SOPHiA GENETICS Stock Performance

The company has a debt-to-equity ratio of 1.05, a quick ratio of 1.90 and a current ratio of 2.06. The stock's 50 day moving average price is $5.48 and its 200 day moving average price is $5.10. The company has a market capitalization of $546.54 million, a P/E ratio of -12.51 and a beta of 0.96.

SOPHiA GENETICS (NASDAQ:SOPH - Get Free Report) last announced its earnings results on Tuesday, August 4th. The company reported ($0.30) earnings per share for the quarter, missing analysts' consensus estimates of ($0.21) by ($0.09). The firm had revenue of $23.31 million for the quarter, compared to the consensus estimate of $21.72 million. SOPHiA GENETICS had a negative return on equity of 62.74% and a negative net margin of 44.48%. As a group, equities analysts expect that SOPHiA GENETICS SA will post -0.58 EPS for the current year.

Insiders Place Their Bets

In related news, CEO Ross Muken sold 9,838 shares of the company's stock in a transaction dated Monday, July 6th. The stock was sold at an average price of $5.22, for a total transaction of $51,354.36. Following the sale, the chief executive officer owned 670,651 shares in the company, valued at $3,500,798.22. This represents a 1.45% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at 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, Chairman Jurgi Camblong sold 20,000 shares of the company's stock in a transaction dated Tuesday, July 21st. The shares were sold at an average price of $6.63, for a total value of $132,600.00. Following the sale, the chairman owned 3,492,822 shares in the company, valued at approximately $23,157,409.86. The trade was a 0.57% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 221,092 shares of company stock valued at $1,250,070. 4.88% of the stock is currently owned by insiders.

Hedge Funds Weigh In On SOPHiA GENETICS

Institutional investors have recently added to or reduced their stakes in the business. Silverberg Bernstein Capital Management LLC raised its holdings in shares of SOPHiA GENETICS by 8.7% during the first quarter. Silverberg Bernstein Capital Management LLC now owns 51,970 shares of the company's stock valued at $257,000 after purchasing an additional 4,155 shares during the period. Dimensional Fund Advisors LP grew its stake in shares of SOPHiA GENETICS by 24.7% in the 3rd quarter. Dimensional Fund Advisors LP now owns 31,332 shares of the company's stock valued at $148,000 after buying an additional 6,205 shares during the period. Principal Financial Group Inc. increased its position in SOPHiA GENETICS by 0.7% in the 1st quarter. Principal Financial Group Inc. now owns 1,409,242 shares of the company's stock valued at $6,976,000 after buying an additional 9,800 shares in the last quarter. First Dallas Securities Inc. bought a new stake in SOPHiA GENETICS in the 1st quarter valued at about $50,000. Finally, Squarepoint Ops LLC acquired a new position in SOPHiA GENETICS during the 3rd quarter worth approximately $49,000. 31.59% of the stock is owned by institutional investors and hedge funds.

About SOPHiA GENETICS

SOPHiA GENETICS SA is a data-driven medicine company founded in 2011 and headquartered in La Tène, Switzerland. The firm develops and operates a cloud-native software platform designed to standardize and analyze complex genomic and radiomic data. Its core offering, the SOPHiA DDM™ platform, leverages artificial intelligence and machine learning algorithms to help healthcare institutions, laboratories and biopharmaceutical partners derive actionable insights from next-generation sequencing and medical imaging datasets.

The SOPHiA DDM™ platform supports a range of clinical applications, including oncology, hereditary diseases and rare genetic disorders.

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