Castle Biosciences (NASDAQ:CSTL) Stock Rating Upgraded by Wall Street Zen

Castle Biosciences (NASDAQ:CSTL) was upgraded by investment analysts at Wall Street Zen from a “sell” rating to a “hold” rating in a report released on Saturday.

Other analysts have also issued research reports about the company. BTIG Research lowered their price target on Castle Biosciences from $50.00 to $40.00 and set a “buy” rating for the company in a report on Wednesday, May 13th. Robert W. Baird set a $36.00 target price on Castle Biosciences in a research report on Friday. Zacks Research cut Castle Biosciences from a “strong-buy” rating to a “hold” rating in a report on Tuesday, May 26th. Canaccord Genuity Group dropped their price target on Castle Biosciences from $50.00 to $40.00 and set a “buy” rating on the stock in a research report on Monday, April 20th. Finally, Roth Capital began coverage on Castle Biosciences in a research note on Wednesday, June 24th. They set a “buy” rating and a $40.00 price target on the stock. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, Castle Biosciences currently has an average rating of “Moderate Buy” and a consensus price target of $41.43.

Castle Biosciences Stock Performance

CSTL stock opened at $28.00 on Friday. Castle Biosciences has a 12 month low of $14.59 and a 12 month high of $44.28. The firm’s 50-day moving average is $22.76 and its 200 day moving average is $26.43. The company has a market capitalization of $849.24 million, a PE ratio of -42.42 and a beta of 0.98. The company has a debt-to-equity ratio of 0.02, a current ratio of 6.04 and a quick ratio of 5.85.

Castle Biosciences (NASDAQ:CSTL) last released its quarterly earnings data on Thursday, July 30th. The company reported ($0.07) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.41) by $0.34. The company had revenue of $99.86 million during the quarter, compared to analysts’ expectations of $86.23 million. Castle Biosciences had a negative net margin of 5.43% and a negative return on equity of 4.15%. On average, research analysts anticipate that Castle Biosciences will post -1.56 EPS for the current year.

Insider Activity

In other news, insider Derek J. Maetzold sold 3,622 shares of the firm’s stock in a transaction dated Monday, July 27th. The shares were sold at an average price of $24.16, for a total value of $87,507.52. Following the sale, the insider directly owned 11,812 shares in the company, valued at approximately $285,377.92. This trade represents a 23.47% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Kristen M. Oelschlager sold 8,586 shares of Castle Biosciences stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $24.42, for a total transaction of $209,670.12. Following the completion of the transaction, the chief operating officer directly owned 21,874 shares in the company, valued at approximately $534,163.08. The trade was a 28.19% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 55,025 shares of company stock valued at $1,252,199. Insiders own 6.10% of the company’s stock.

Hedge Funds Weigh In On Castle Biosciences

A number of large investors have recently made changes to their positions in CSTL. Federated Hermes Inc. acquired a new stake in shares of Castle Biosciences in the 4th quarter worth $26,000. Kemnay Advisory Services Inc. acquired a new position in Castle Biosciences during the 4th quarter valued at about $35,000. Jones Financial Companies Lllp raised its stake in Castle Biosciences by 10,592.0% in the first quarter. Jones Financial Companies Lllp now owns 2,673 shares of the company’s stock valued at $54,000 after buying an additional 2,648 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. boosted its holdings in Castle Biosciences by 26.5% in the fourth quarter. Mirae Asset Global Investments Co. Ltd. now owns 1,418 shares of the company’s stock worth $55,000 after acquiring an additional 297 shares in the last quarter. Finally, Russell Investments Group Ltd. grew its stake in shares of Castle Biosciences by 63.7% during the third quarter. Russell Investments Group Ltd. now owns 2,508 shares of the company’s stock worth $57,000 after acquiring an additional 976 shares during the last quarter. 92.60% of the stock is owned by institutional investors and hedge funds.

Castle Biosciences News Roundup

Here are the key news stories impacting Castle Biosciences this week:

• Positive Sentiment: Revenue significantly exceeded expectations: Second-quarter revenue was approximately $103.5 million, up 20.1% year over year and above analyst estimates near $86 million-$88 million. Gross profit increased 16.5% to $79.8 million. Castle Biosciences Reports Second Quarter 2026 Results
• Positive Sentiment: Loss was narrower than expected: Adjusted loss was $0.07 per share, compared with the consensus estimate of a $0.41-$0.44 loss. The operating loss narrowed to $3.1 million, supporting the view that improving scale may help profitability over time. Castle Biosciences Reports Q2 Loss, Tops Revenue Estimates
• Positive Sentiment: Full-year outlook was raised: Castle now expects 2026 revenue of $365 million to $375 million, above the approximately $353.2 million analyst consensus. The higher outlook strengthens the growth narrative and likely provided the main catalyst for the stock’s advance. Castle Biosciences Lifts 2026 Outlook After Q2 Growth
• Neutral Sentiment: Liquidity remains solid: The company generated $15.2 million in operating cash flow and ended the quarter with $62.1 million in cash, while maintaining relatively low leverage. However, capital spending was $8.7 million and net profitability has not yet been achieved. Castle Biosciences Q2 2026 Earnings Call Transcript
• Negative Sentiment: Insider selling remains a risk signal: Chief Executive Officer Derek Maetzold and other executives have reported stock sales, with the transactions conducted under pre-arranged Rule 10b5-1 plans. While these sales do not necessarily indicate deteriorating business conditions, the absence of reported insider purchases may temper investor enthusiasm.

Castle Biosciences Company Profile

Castle Biosciences, Inc is a molecular diagnostics company specializing in the development and commercialization of prognostic and diagnostic tests for patients with dermatologic conditions. The company’s proprietary portfolio of genomic assays is designed to improve risk assessment and guide clinical decision-making for individuals with skin cancers and other skin-related diseases. By combining genomic data with advanced statistical algorithms, Castle Biosciences seeks to provide actionable insights that help physicians tailor treatment plans and monitoring strategies.

The company’s flagship test, DecisionDx-Melanoma, evaluates the probability of metastasis in patients diagnosed with cutaneous melanoma, supporting more personalized surveillance and therapeutic approaches.