Veracyte (NASDAQ:VCYT) Reaches New 52-Week High: Should You Buy?

Veracyte, Inc. (NASDAQ:VCYT) has hit a new 52-week high during trading, reaching a peak of $35.56 on Tuesday before closing slightly lower at $35.19. Trading volume amounted to 137,715 shares, indicating strong market interest.

Analyst Opinions on VCYT

Several Wall Street analysts have recently shared their thoughts on Veracyte's stock. Needham & Company increased their target price from $31 to $37, categorizing the stock as a "buy". Guggenheim began covering Veracyte on October 10, assigning a "buy" rating and setting a target price of $40. Morgan Stanley, however, raised their target from $21 to $26, while maintaining an "underweight" rating. Leerink Partners also revised their price target from $35 to $40 with an "outperform" rating. Lastly, UBS Group started their coverage with a "buy" rating and a target price of $43. In total, one analyst has a sell rating while six analysts favor a buy recommendation, leading to an overall average rating of "Moderate Buy" with a price target of $35.67 according to MarketBeat.

Discover More About VCYT

Stock Performance

Veracyte's market capitalization stands at $2.76 billion. The company has a P/E ratio of -47.44 and a beta of 1.67. Its 50-day moving average price is $32.88 while the 200-day moving average is $26.60.

The company released its quarterly earnings on August 6, reporting earnings per share of $0.07, surpassing expectations of a loss of $0.03 by $0.10. Veracyte's revenue for the quarter was $114.43 million, which exceeded the anticipated $100.27 million. This represents a significant 26.7% increase from the previous year when earnings per share were ($0.12). Analysts project that Veracyte will post earnings of $0.16 for the current year.

Insider Trading Activities

In other news, Director Evan/Fa Jones sold 1,032 shares on August 9 at an average price of $30.03, totaling $30,990.96. Following this sale, Jones holds 46,413 shares valued at around $1.39 million. This sale did not alter his ownership percentage. Additionally, Director Jens Holstein sold 5,000 shares at an average price of $29.00 on August 7, amounting to $145,000, with an updated total of 27,878 shares now valued at roughly $808,462. Over the past 90 days, insiders have sold a total of 37,141 shares valued at $1.18 million, with corporate insiders owning 1.30% of the stock.

Institutional Investment Trends

In recent months, various institutional investors have modified their positions in Veracyte. Vanguard Group raised its holdings by 3.7% to 7.38 million shares, worth about $163.65 million after purchasing an additional 266,660 shares. Champlain Investment Partners increased its stake by 23.3%, now owning 2.70 million shares valued at approximately $59.78 million. William Blair Investment Management's holdings surged by 67.4%, acquiring 1.24 million shares valued at $26.91 million. Bamco Inc. increased its stake by 46.3%, owning 1.12 million shares worth $24.73 million, while Granite Investment Partners raised their stake by 2.1%, now owning 934,994 shares valued at $20.26 million.

About Veracyte, Inc.

Veracyte operates as a diagnostics firm providing services in the U.S. and internationally. The company specializes in various diagnostic tools including the Afirma Genomic Sequencing Classifier for thyroid nodules, the Decipher Prostate Biopsy and Radical Prostatectomy tests for prostate cancer, the Prosigna Breast Cancer Assay for breast cancer, the Percepta Nasal Swab Test for lung cancer, and the Envisia Genomic Classifier for idiopathic pulmonary fibrosis.

Final Thoughts

Investors should consider the recent trends in Veracyte's stock and the insights from analysts before making a buying decision. While there is some positive sentiment surrounding the stock, it is advisable to stay updated on any market changes and company announcements.

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