Zacks Research Upgrades GeneDx (NASDAQ:WGS) to Hold

GeneDx (NASDAQ:WGS - Get Free Report) was upgraded by research analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a report issued on Tuesday,Zacks.com reports.

A number of other brokerages have also weighed in on WGS. Wells Fargo & Company restated an "overweight" rating and issued a $75.00 target price (down from $155.00) on shares of GeneDx in a research note on Tuesday, May 5th. Canaccord Genuity Group set a $75.00 price target on shares of GeneDx and gave the stock a "buy" rating in a research report on Tuesday, May 5th. Piper Sandler reissued an "overweight" rating and set a $63.00 price objective (up from $50.00) on shares of GeneDx in a report on Tuesday, June 23rd. Wall Street Zen lowered shares of GeneDx from a "hold" rating to a "sell" rating in a report on Saturday, May 9th. Finally, Weiss Ratings cut shares of GeneDx from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Monday, June 1st. Seven equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, GeneDx presently has an average rating of "Moderate Buy" and a consensus price target of $87.43.

GeneDx Stock Up 2.9%

Shares of WGS opened at $63.69 on Tuesday. The company has a market capitalization of $1.89 billion, a P/E ratio of -23.76 and a beta of 1.90. The company has a debt-to-equity ratio of 0.38, a current ratio of 3.09 and a quick ratio of 2.95. GeneDx has a one year low of $32.21 and a one year high of $170.87. The business's 50 day simple moving average is $59.88 and its 200-day simple moving average is $70.44.

GeneDx (NASDAQ:WGS - Get Free Report) last released its quarterly earnings results on Monday, May 4th. The company reported ($0.28) EPS for the quarter, missing analysts' consensus estimates of ($0.06) by ($0.22). GeneDx had a positive return on equity of 9.15% and a negative net margin of 17.58%.The business had revenue of $102.25 million for the quarter, compared to the consensus estimate of $112.46 million. During the same quarter last year, the company earned ($0.23) earnings per share. As a group, sell-side analysts predict that GeneDx will post -1 EPS for the current fiscal year.

Insider Transactions at GeneDx

In other news, Director Keith A. Meister bought 46,273 shares of the stock in a transaction dated Friday, May 15th. The stock was bought at an average cost of $38.91 per share, with a total value of $1,800,482.43. Following the purchase, the director owned 4,784,570 shares of the company's stock, valued at approximately $186,167,618.70. This represents a 0.98% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Casdin Capital, Llc purchased 50,000 shares of the business's stock in a transaction dated Friday, June 5th. The shares were purchased at an average cost of $52.86 per share, for a total transaction of $2,643,000.00. Following the purchase, the director directly owned 3,707,164 shares of the company's stock, valued at $195,960,689.04. This trade represents a 1.37% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Over the last quarter, insiders purchased 2,256,420 shares of company stock valued at $93,144,340 and sold 19,135 shares valued at $1,128,499. Company insiders own 25.17% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Handelsbanken Fonder AB grew its position in shares of GeneDx by 17.0% during the 2nd quarter. Handelsbanken Fonder AB now owns 6,200 shares of the company's stock worth $426,000 after buying an additional 900 shares during the period. Assenagon Asset Management S.A. lifted its holdings in GeneDx by 219.0% in the second quarter. Assenagon Asset Management S.A. now owns 303,433 shares of the company's stock valued at $20,831,000 after buying an additional 208,305 shares during the period. Bank of America Corp DE lifted its holdings in GeneDx by 77.5% in the first quarter. Bank of America Corp DE now owns 234,606 shares of the company's stock valued at $15,066,000 after buying an additional 102,456 shares during the period. California State Teachers Retirement System boosted its stake in GeneDx by 31.2% in the first quarter. California State Teachers Retirement System now owns 25,045 shares of the company's stock valued at $1,608,000 after acquiring an additional 5,951 shares during the last quarter. Finally, Ashford Capital Management Inc. boosted its stake in GeneDx by 31.9% in the first quarter. Ashford Capital Management Inc. now owns 174,512 shares of the company's stock valued at $11,207,000 after acquiring an additional 42,186 shares during the last quarter. Institutional investors own 61.72% of the company's stock.

More GeneDx News

Here are the key news stories impacting GeneDx this week:

• Positive Sentiment: GeneDx has an average analyst recommendation of “Moderate Buy,” suggesting some analysts continue to see recovery or long-term value in the company despite recent volatility. GeneDx analyst recommendation
• Negative Sentiment: Multiple law firms announced or promoted a securities class action against GeneDx and certain officers. The case covers investors who purchased shares from April 16, 2025, through May 4, 2026, with an August 3, 2026 deadline to seek lead-plaintiff status. The repeated notices increase the visibility of the legal risk and may weigh on investor confidence. GeneDx class action announcement
• Negative Sentiment: The allegations focus on claims that GeneDx concealed deteriorating reimbursement rates and margin compression. Other notices allege that the company overstated the performance and strategic benefits of its Fabric Genomics acquisition, which allegedly resulted in a $31.2 million write-off and contributed to a roughly 49% stock decline. These are allegations, not proven findings. GeneDx shareholder alert
• Negative Sentiment: The litigation headlines add to existing fundamental concerns: GeneDx’s latest reported quarter missed both revenue and EPS expectations, and analysts expect a full-year loss. Potential legal costs, settlement exposure, and additional scrutiny could further pressure the valuation. GeneDx deadline alert

GeneDx Company Profile

GeneDx is a clinical diagnostics company specializing in comprehensive genetic and genomic testing for rare and inherited disorders. The company offers a broad portfolio of assays, including targeted gene panels, whole exome sequencing, whole genome sequencing and chromosomal microarray analysis. GeneDx's laboratory services support the diagnosis of a wide range of conditions—from rare pediatric diseases and hereditary cancer syndromes to neuromuscular and metabolic disorders—by providing clinicians with detailed variant interpretation and reporting.

Founded in 2000 and based in Gaithersburg, Maryland, GeneDx was established with the aim of accelerating the translation of genomic discoveries into clinical care.

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