Castle Biosciences (NASDAQ:CSTL) Shares Down 7% – Here’s Why

Castle Biosciences, Inc. (NASDAQ:CSTL) shares traded down 7% on Thursday . The stock traded as low as $31.28 and last traded at $31.32. 226,852 shares were traded during mid-day trading, a decline of 41% from the average session volume of 385,790 shares. The stock had previously closed at $33.67.

Key Castle Biosciences News

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

• Positive Sentiment: JAAD prospective clinical validation: A multicenter study published in the Journal of the American Academy of Dermatology shows Castle’s AdvanceAD‑Tx test can identify ~30% of moderate‑to‑severe atopic dermatitis patients who achieve faster and larger responses to JAK inhibitors versus Th2 therapies — supports clinical utility and commercial potential after the company’s limited access launch. Prospective Validation Study in JAAD Demonstrates Castle Biosciences’ AdvanceAD‑Tx™ Test Identifies Patients More Likely to Achieve Faster and Deeper Responses with JAK Inhibitor Therapy in Moderate‑to‑Severe Atopic Dermatitis
• Positive Sentiment: Analyst and consensus support: Multiple recent buy/outperform ratings and a median analyst price target near $50 suggest upside expectations if clinical adoption and revenue follow-through occur. Castle Biosciences Publishes Study Demonstrating AdvanceAD‑Tx Test Improves Treatment Outcomes
• Positive Sentiment: Earnings setup: Street commentary (Zacks) expects Castle may beat upcoming Q4 estimates, which could provide a near‑term catalyst if results and guidance are favorable. Castle Biosciences, Inc. (CSTL) Expected to Beat Earnings Estimates
• Neutral Sentiment: Institutional flows mixed: Recent filings show both large additions and sizable reductions among hedge funds and institutions — indicates divergent views and potential short‑ to medium‑term volatility.
• Neutral Sentiment: Short‑interest data flagged as increasing but the reported numbers are anomalous/zero (likely a data error) — not reliable evidence of a coordinated short trade pressure right now.
• Negative Sentiment: Heavy insider selling: QuiverQuant notes numerous open‑market sales by senior executives over the past six months (no recent purchases reported), which can be perceived negatively by the market even if sales are for diversification or tax reasons. Castle Biosciences Publishes Study Demonstrating AdvanceAD‑Tx Test Improves Treatment Outcomes

Analyst Ratings Changes

A number of research firms have recently commented on CSTL. Weiss Ratings reissued a “sell (d)” rating on shares of Castle Biosciences in a research report on Monday, December 29th. Robert W. Baird lifted their target price on shares of Castle Biosciences from $39.00 to $41.00 and gave the stock an “outperform” rating in a report on Tuesday, November 4th. Lake Street Capital boosted their target price on shares of Castle Biosciences from $35.00 to $52.00 and gave the stock a “buy” rating in a research report on Monday, January 12th. Canaccord Genuity Group raised their price target on Castle Biosciences from $37.00 to $50.00 and gave the company a “buy” rating in a research report on Monday, December 22nd. Finally, BTIG Research lifted their price objective on Castle Biosciences from $38.00 to $50.00 and gave the stock a “buy” rating in a research note on Friday, December 12th. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $47.14.

Castle Biosciences Price Performance

The company has a market cap of $852.64 million, a price-to-earnings ratio of -64.91 and a beta of 1.06. The company has a current ratio of 6.47, a quick ratio of 6.31 and a debt-to-equity ratio of 0.02. The company has a fifty day moving average price of $38.08 and a two-hundred day moving average price of $30.76.

Insiders Place Their Bets

In other news, COO Kristen M. Oelschlager sold 14,888 shares of the firm’s stock in a transaction dated Wednesday, December 17th. The shares were sold at an average price of $39.31, for a total transaction of $585,247.28. Following the completion of the transaction, the chief operating officer directly owned 12,323 shares of the company’s stock, valued at approximately $484,417.13. This trade represents a 54.71% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Derek J. Maetzold sold 5,115 shares of the company’s stock in a transaction dated Tuesday, November 25th. The shares were sold at an average price of $40.05, for a total transaction of $204,855.75. Following the completion of the sale, the insider directly owned 45,822 shares in the company, valued at approximately $1,835,171.10. The trade was a 10.04% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 34,732 shares of company stock valued at $1,372,743. Corporate insiders own 6.50% of the company’s stock.

Hedge Funds Weigh In On Castle Biosciences

Several hedge funds and other institutional investors have recently modified their holdings of CSTL. Vanguard Group Inc. grew its position in Castle Biosciences by 1.3% in the fourth quarter. Vanguard Group Inc. now owns 2,199,829 shares of the company’s stock valued at $85,573,000 after acquiring an additional 27,511 shares during the period. RTW Investments LP acquired a new stake in shares of Castle Biosciences in the 4th quarter valued at $82,283,000. Principal Financial Group Inc. grew its holdings in shares of Castle Biosciences by 0.7% in the 4th quarter. Principal Financial Group Inc. now owns 1,807,644 shares of the company’s stock worth $70,317,000 after purchasing an additional 13,289 shares during the last quarter. Portolan Capital Management LLC grew its holdings in shares of Castle Biosciences by 1.7% in the 3rd quarter. Portolan Capital Management LLC now owns 1,515,111 shares of the company’s stock worth $34,499,000 after purchasing an additional 25,539 shares during the last quarter. Finally, Dimensional Fund Advisors LP increased its position in shares of Castle Biosciences by 7.0% during the 3rd quarter. Dimensional Fund Advisors LP now owns 1,474,089 shares of the company’s stock worth $33,564,000 after purchasing an additional 96,084 shares in the last quarter. Institutional investors own 92.60% of the company’s stock.

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.