Veracyte (NASDAQ:VCYT) Shares Up 7.1% - Here's Why

Key Points

• Veracyte shares rose 7.1% on Monday, trading as high as $41.04 after closing at $38.48, though volume was well below average.
• The move came after the company posted strong quarterly results, with EPS of $0.52 versus estimates of $0.34 and revenue of $139.07 million, up 21.5% year over year.
• Analyst sentiment remains mixed: the stock has a consensus rating of “Hold” with an average price target of $44.83, while several insiders also recently sold shares.

Veracyte, Inc. (NASDAQ:VCYT - Get Free Report)'s share price shot up 7.1% on Monday . The stock traded as high as $41.04 and last traded at $41.1970. 284,412 shares were traded during mid-day trading, a decline of 69% from the average session volume of 902,943 shares. The stock had previously closed at $38.48.

Wall Street Analysts Forecast Growth

VCYT has been the subject of a number of research analyst reports. Guggenheim reduced their price objective on Veracyte from $50.00 to $45.00 and set a "buy" rating for the company in a report on Monday, March 30th. Morgan Stanley lowered their target price on Veracyte from $48.00 to $37.00 and set an "underweight" rating on the stock in a research note on Thursday, March 5th. Canaccord Genuity Group boosted their price target on Veracyte from $40.00 to $42.00 and gave the company a "hold" rating in a research note on Wednesday, May 6th. Zacks Research lowered Veracyte from a "strong-buy" rating to a "hold" rating in a report on Thursday, March 12th. Finally, Needham & Company LLC reissued a "buy" rating and set a $48.00 target price on shares of Veracyte in a report on Wednesday, April 1st. Four equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $44.83.

Veracyte Price Performance

The business's 50-day moving average price is $33.87 and its two-hundred day moving average price is $38.37. The company has a market capitalization of $3.33 billion, a price-to-earnings ratio of 38.45 and a beta of 1.89.

Veracyte (NASDAQ:VCYT - Get Free Report) last issued its quarterly earnings results on Tuesday, May 5th. The biotechnology company reported $0.52 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.34 by $0.18. Veracyte had a return on equity of 9.07% and a net margin of 16.25%.The business had revenue of $139.07 million for the quarter, compared to the consensus estimate of $130.36 million. During the same quarter in the prior year, the business posted $0.31 earnings per share. The firm's quarterly revenue was up 21.5% compared to the same quarter last year. As a group, research analysts predict that Veracyte, Inc. will post 1.28 EPS for the current year.

Insider Activity

In related news, CFO Rebecca Chambers sold 18,341 shares of Veracyte stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $36.14, for a total value of $662,843.74. Following the transaction, the chief financial officer directly owned 131,196 shares of the company's stock, valued at $4,741,423.44. This trade represents a 12.27% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider John Leite sold 5,260 shares of the business's stock in a transaction that occurred on Wednesday, March 4th. The shares were sold at an average price of $35.19, for a total transaction of $185,099.40. Following the transaction, the insider owned 107,580 shares of the company's stock, valued at approximately $3,785,740.20. This represents a 4.66% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 85,986 shares of company stock valued at $3,120,257. Corporate insiders own 1.40% of the company's stock.

Hedge Funds Weigh In On Veracyte

Several hedge funds and other institutional investors have recently modified their holdings of VCYT. Royal Bank of Canada lifted its position in shares of Veracyte by 23.3% during the 1st quarter. Royal Bank of Canada now owns 28,712 shares of the biotechnology company's stock worth $852,000 after buying an additional 5,435 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in Veracyte by 12.2% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 195,793 shares of the biotechnology company's stock worth $5,805,000 after acquiring an additional 21,330 shares in the last quarter. Jane Street Group LLC lifted its holdings in shares of Veracyte by 94.7% in the first quarter. Jane Street Group LLC now owns 216,909 shares of the biotechnology company's stock worth $6,431,000 after acquiring an additional 105,499 shares during the last quarter. Intech Investment Management LLC lifted its holdings in shares of Veracyte by 54.1% in the first quarter. Intech Investment Management LLC now owns 42,762 shares of the biotechnology company's stock worth $1,268,000 after acquiring an additional 15,017 shares during the last quarter. Finally, Russell Investments Group Ltd. boosted its stake in shares of Veracyte by 32.2% in the 2nd quarter. Russell Investments Group Ltd. now owns 48,786 shares of the biotechnology company's stock valued at $1,319,000 after purchasing an additional 11,889 shares in 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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