Stephens Issues Pessimistic Forecast for Veracyte (NASDAQ:VCYT) Stock Price

Key Points

• Stephens cut Veracyte’s price target from $68 to $55 while maintaining an “overweight” rating, implying 22.63% upside from the prior close. Analysts’ consensus remains “Moderate Buy,” with an average target of $54.33.
• Veracyte reported quarterly results above expectations, with EPS of $0.54 versus $0.41 expected and revenue of $150.32 million versus $144.59 million; revenue rose 15.5% year over year.
• Shares opened at $44.85, below their 50-day average of $53.72 but above their 200-day average of $42.33. Insiders sold shares valued at roughly $10.1 million over the past 90 days, while several institutional investors increased their positions.

Veracyte (NASDAQ:VCYT - Get Free Report) had its price target dropped by Stephens from $68.00 to $55.00 in a report released on Tuesday,Benzinga reports. The brokerage presently has an "overweight" rating on the biotechnology company's stock. Stephens' price target would suggest a potential upside of 22.63% from the stock's previous close.

Other research analysts have also recently issued reports about the company. Needham & Company LLC raised their target price on Veracyte from $57.00 to $69.00 and gave the stock a "buy" rating in a research report on Friday. Morgan Stanley reduced 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. Piper Sandler set a $54.00 target price on Veracyte in a research report on Tuesday. Guggenheim increased their price objective on shares of Veracyte from $45.00 to $65.00 and gave the company a "buy" rating in a research report on Monday, June 29th. Finally, UBS Group upped their target price on shares of Veracyte from $48.00 to $52.00 and gave the stock a "buy" rating in a report on Wednesday, May 6th. One equities 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 issued a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $54.33.

Veracyte Price Performance

Shares of NASDAQ:VCYT opened at $44.85 on Tuesday. The firm has a market capitalization of $3.58 billion, a price-to-earnings ratio of 31.81 and a beta of 1.95. Veracyte has a one year low of $23.35 and a one year high of $60.91. The company's fifty day moving average price is $53.72 and its 200-day moving average price is $42.33.

Veracyte (NASDAQ:VCYT - Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The biotechnology company reported $0.54 EPS for the quarter, beating analysts' consensus estimates of $0.41 by $0.13. The business had revenue of $150.32 million for the quarter, compared to the consensus estimate of $144.59 million. Veracyte had a return on equity of 9.26% and a net margin of 20.37%.The business's revenue for the quarter was up 15.5% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.44 EPS. As a group, equities research analysts expect that Veracyte will post 1.25 EPS for the current year.

Insider Activity at Veracyte

In other news, CFO Rebecca Chambers sold 3,561 shares of the business's stock in a transaction on Thursday, June 4th. The shares were sold at an average price of $49.73, for a total transaction of $177,088.53. Following the sale, the chief financial officer owned 173,280 shares in the company, valued at approximately $8,617,214.40. The trade was a 2.01% 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, EVP Annie Mcguire sold 3,176 shares of Veracyte stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $49.76, for a total transaction of $158,037.76. Following the transaction, the executive vice president directly owned 137,240 shares in the company, valued at $6,829,062.40. This represents a 2.26% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders sold 206,696 shares of company stock valued at $10,079,058. Corporate insiders own 1.60% of the company's stock.

Institutional Investors Weigh In On Veracyte

Several large investors have recently made changes to their positions in the company. Fuller & Thaler Asset Management Inc. bought a new stake in Veracyte in the fourth quarter worth about $58,158,000. First Trust Advisors LP lifted its stake in Veracyte by 64.9% during the first quarter. First Trust Advisors LP now owns 2,117,046 shares of the biotechnology company's stock worth $68,190,000 after purchasing an additional 833,543 shares during the last quarter. Squarepoint Ops LLC increased its position in Veracyte by 770.6% in the 2nd quarter. Squarepoint Ops LLC now owns 897,387 shares of the biotechnology company's stock valued at $24,256,000 after acquiring an additional 794,307 shares during the period. Soleus Capital Management L.P. purchased a new position in Veracyte in the second quarter valued at about $19,338,000. Finally, Iron Triangle Partners LP boosted its stake in shares of Veracyte by 102.1% during the 4th quarter. Iron Triangle Partners LP now owns 980,391 shares of the biotechnology company's stock worth $41,274,000 after purchasing an additional 495,391 shares during the last quarter.

About Veracyte

Veracyte, Inc is a genomic diagnostics company focused on improving diagnostic accuracy and patient care through advanced molecular testing. Founded in 2008 and headquartered in South San Francisco, California, the company develops and commercializes minimally invasive genomic tests that aid in the diagnosis of thyroid, lung and other diseases. Veracyte's proprietary platform analyzes gene expression patterns in clinical samples to help physicians make more informed treatment decisions, reducing unnecessary surgeries and improving patient outcomes.

The company's flagship product, the Afirma Genomic Sequencing Classifier, is designed to assess thyroid nodules with indeterminate cytology, helping clinicians distinguish benign from suspicious nodules.

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