GeneDx (NASDAQ:WGS) Reports Strong Quarterly Earnings, Surpassing Expectations

GeneDx (NASDAQ:WGS) announced its quarterly earnings results on Tuesday, surprising analysts with a reported earnings per share (EPS) of $0.04 for the quarter. This figure exceeded analysts' expectations, which had estimated a loss of ($0.21) per share, resulting in an impressive beat of $0.25. The firm reported revenue of $76.90 million, significantly higher than the consensus estimate of $64.98 million. Although GeneDx recorded a negative net margin of 31.25% and a negative return on equity of 13.35%, the revenue showed a strong increase of 44.3% compared to the same quarter last year. In the previous year’s quarter, the firm had reported an EPS of ($0.82).

GeneDx Stock Performance

On Friday, shares of GeneDx experienced a decline of $5.58, trading at $76.11 during midday sessions. The trading volume reached 618,522 shares, surpassing the average volume of 439,000. Key financial ratios for the company include a quick ratio of 2.22 and a current ratio of 2.40, indicating good short-term financial health. GeneDx has a debt-to-equity ratio of 0.25, with the stock's one-year low noted at $1.16 and a one-year high at $89.11. The company's market capitalization stands at $2.05 billion, with a price-to-earnings ratio of -24.72 and a beta of 2.32. The fifty-day simple moving average is $46.60, while the two-hundred-day simple moving average is $32.76.

Revisions in Analyst Ratings

GeneDx has been featured in numerous recent research reports. TD Cowen elevated their target price for the stock from $46.00 to $50.00, maintaining a "buy" rating, as noted in their research published on July 31st. Similarly, BTIG Research also updated their price target for GeneDx from $35.00 to $45.00, reiterating a "buy" rating. Wells Fargo & Company adjusted their target price from $34.00 to $75.00 while assigning an "equal weight" rating. Craig Hallum raised their price target from $70.00 to $95.00, keeping a "buy" stance. Furthermore, The Goldman Sachs Group increased their price target from $54.00 to $70.00, offering a "neutral" rating. Currently, three research analysts have rated the stock as a hold, while three others rated it as a buy, leading to a consensus rating of "Moderate Buy" with an average target price of $59.33 according to MarketBeat data.

Insider Trading Activities at GeneDx

In addition, there have been significant insider transactions. Major shareholder Opko Health, Inc. sold 100,000 shares of GeneDx on August 8th at an average price of $31.82, totaling $3,182,000. Following this sale, Opko Health retains ownership of 2,871,570 shares worth approximately $91.37 million. CEO Katherine Stueland also sold 3,639 shares on September 9th for around $121,287.87, retaining 95,457 shares valued at $3.18 million. In total, insiders have sold 269,829 shares valued at $8.96 million over the last ninety days, with corporate insiders owning 27.30% of the stock.

About GeneDx

GeneDx Holdings Corp., through its subsidiaries, specializes in providing genomic diagnostic services and information. They offer Centrellis, an AI-driven platform that integrates digital tools and artificial intelligence to assist scientists in synthesizing clinical and genomic data, aiming to deliver comprehensive health insights.

Earnings, Stocks, GeneDx