Veracyte (NASDAQ:VCYT) Upgraded to "Strong-Buy" at Wolfe Research

Key Points

• Wolfe Research upgraded Veracyte to a “strong-buy,” adding to a mixed but generally positive analyst backdrop. The stock now has a consensus rating of “Moderate Buy” with a consensus price target of $47.57.
• Veracyte recently reported strong quarterly results, with EPS of $0.52 versus estimates of $0.34 and revenue of $139.07 million versus expectations of $130.36 million. Revenue rose 21.5% year over year.
• There has also been notable insider selling, including transactions by SVP Annie McGuire and Director Robert S. Epstein, while institutional investors such as Bank of America and RBC increased their holdings.

Veracyte (NASDAQ:VCYT - Get Free Report) was upgraded by investment analysts at Wolfe Research to a "strong-buy" rating in a report issued on Monday,Zacks.com reports.

A number of other brokerages have also recently issued reports on VCYT. Guggenheim decreased their target price 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 decreased their target price on Veracyte from $48.00 to $37.00 and set an "underweight" rating for the company in a report on Thursday, March 5th. Zacks Research cut Veracyte from a "strong-buy" rating to a "hold" rating in a report on Thursday, March 12th. Jefferies Financial Group started coverage on Veracyte in a report on Monday, April 13th. They set a "buy" rating and a $45.00 target price for the company. Finally, Needham & Company LLC boosted their target price on Veracyte from $48.00 to $57.00 and gave the stock a "buy" rating in a report on Monday. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $47.57.

Veracyte Price Performance

VCYT opened at $47.80 on Monday. The stock has a market capitalization of $3.81 billion, a price-to-earnings ratio of 43.85 and a beta of 1.98. The business has a 50-day moving average of $36.52 and a two-hundred day moving average of $38.83. Veracyte has a 12 month low of $22.61 and a 12 month high of $50.71.

Veracyte (NASDAQ:VCYT - Get Free Report) last issued its 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 during the quarter, compared to analysts' expectations of $130.36 million. During the same quarter in the previous year, the business earned $0.31 EPS. The company's revenue for the quarter was up 21.5% on a year-over-year basis. Equities research analysts anticipate that Veracyte will post 1.28 earnings per share for the current year.

Insider Buying and Selling

In related news, SVP Annie Mcguire sold 10,204 shares of the business's stock in a transaction that occurred on Wednesday, May 6th. The stock was sold at an average price of $39.02, for a total transaction of $398,160.08. Following the transaction, the senior vice president directly owned 143,708 shares of the company's stock, valued at approximately $5,607,486.16. The trade was a 6.63% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert S. Epstein sold 10,000 shares of the business's stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $44.01, for a total value of $440,100.00. Following the transaction, the director directly owned 52,446 shares in the company, valued at $2,308,148.46. This trade represents a 16.01% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 44,204 shares of company stock valued at $1,927,860. 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 bought and sold shares of the stock. Bank of America Corp DE lifted its position in Veracyte by 14.7% during the 1st quarter. Bank of America Corp DE now owns 1,448,897 shares of the biotechnology company's stock worth $46,669,000 after acquiring an additional 185,929 shares in the last quarter. California State Teachers Retirement System lifted its position in Veracyte by 24.4% during the 1st quarter. California State Teachers Retirement System now owns 93,029 shares of the biotechnology company's stock worth $2,996,000 after acquiring an additional 18,261 shares in the last quarter. Royal Bank of Canada lifted its position in Veracyte by 66.4% during the 1st quarter. Royal Bank of Canada now owns 573,096 shares of the biotechnology company's stock worth $18,459,000 after acquiring an additional 228,720 shares in the last quarter. Empowered Funds LLC lifted its position in Veracyte by 6,844.5% during the 1st quarter. Empowered Funds LLC now owns 69,167 shares of the biotechnology company's stock worth $2,228,000 after acquiring an additional 68,171 shares in the last quarter. Finally, Quantinno Capital Management LP lifted its position in Veracyte by 25.0% during the 1st quarter. Quantinno Capital Management LP now owns 17,113 shares of the biotechnology company's stock worth $551,000 after acquiring an additional 3,422 shares in the last quarter.

Veracyte Company Profile

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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