GeneDx (NASDAQ:WGS) Shares Gap Down – Here’s Why

GeneDx Holdings Corp. (NASDAQ:WGS) shares gapped down prior to trading on Tuesday. The stock had previously closed at $65.72, but opened at $56.25. GeneDx shares last traded at $54.3910, with a volume of 608,952 shares traded.

GeneDx News Roundup

Here are the key news stories impacting GeneDx this week:

• Positive Sentiment: GeneDx reported Q3 earnings of $0.28 per share, above the $0.07 consensus estimate, and revenue of $123.1 million, slightly ahead of the $122.9 million estimate. GeneDx Q3 earnings and revenue estimates
• Neutral Sentiment: GeneDx forecast FY 2026 revenue of $475 million–$490 million, a range that includes the $481.1 million analyst consensus. The midpoint is close to expectations, so the guidance offers limited surprise on its own.
• Negative Sentiment: Reports said shares fell after GeneDx lowered growth targets. Also, Q3 EPS was down from $0.49 a year earlier despite beating the current-quarter estimate, raising questions about growth momentum. GeneDx shares and lowered growth targets

Analyst Upgrades and Downgrades

Several research analysts have commented on WGS shares. Canaccord Genuity Group lifted their price target on shares of GeneDx from $75.00 to $90.00 and gave the stock a “buy” rating in a research note on Tuesday, August 4th. Weiss Ratings reaffirmed a “sell (d)” rating on shares of GeneDx in a research note on Monday, November 2nd. TD Cowen reaffirmed a “buy” rating on shares of GeneDx in a report on Wednesday, July 15th. Zacks Research cut shares of GeneDx from a “strong-buy” rating to a “hold” rating in a research report on Friday, October 9th. Finally, BTIG Research reissued a “buy” rating and issued a $85.00 price target (down from $90.00) on shares of GeneDx in a research note on Tuesday. Seven equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, GeneDx presently has an average rating of “Moderate Buy” and a consensus target price of $90.14.

GeneDx Stock Down 17.9%

The company has a quick ratio of 3.06, a current ratio of 3.30 and a debt-to-equity ratio of 0.40. The company has a 50-day simple moving average of $76.42 and a two-hundred day simple moving average of $71.15. The stock has a market cap of $1.61 billion, a P/E ratio of -14.89 and a beta of 2.00.

GeneDx (NASDAQ:WGS) last released its quarterly earnings data on Monday, November 9th. The company reported $0.28 earnings per share for the quarter, beating analysts’ consensus estimates of $0.07 by $0.21. GeneDx had a positive return on equity of 4.12% and a negative net margin of 23.41%. The firm had revenue of $123.10 million during the quarter, compared to analyst estimates of $122.93 million. During the same quarter in the prior year, the firm posted ($0.27) earnings per share. On average, equities analysts forecast that GeneDx Holdings Corp. will post -0.41 EPS for the current year.

Insider Buying and Selling at GeneDx

In other GeneDx news, CEO Katherine Stueland sold 10,501 shares of the firm’s stock in a transaction on Wednesday, September 16th. The shares were sold at an average price of $97.61, for a total value of $1,025,002.61. Following the sale, the chief executive officer owned 115,476 shares of the company’s stock, valued at $11,271,612.36. This trade represents a 8.34% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Kevin Feeley sold 3,728 shares of the firm’s stock in a transaction on Wednesday, September 16th. The stock was sold at an average price of $97.61, for a total transaction of $363,890.08. Following the completion of the sale, the chief financial officer directly owned 44,945 shares in the company, valued at approximately $4,387,081.45. This trade represents a 7.66% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 19,206 shares of company stock valued at $1,808,056 in the last three months. 25.17% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of WGS. Fifth Third Bancorp purchased a new stake in GeneDx in the 1st quarter worth approximately $31,000. Nykredit A S purchased a new position in shares of GeneDx during the second quarter valued at approximately $38,000. Sterling Capital Management LLC increased its stake in shares of GeneDx by 851.4% during the third quarter. Sterling Capital Management LLC now owns 666 shares of the company’s stock valued at $48,000 after buying an additional 596 shares during the period. Strs Ohio increased its stake in shares of GeneDx by 8.7% during the first quarter. Strs Ohio now owns 2,500 shares of the company’s stock valued at $161,000 after buying an additional 200 shares during the period. Finally, Pictet Asset Management Holding SA raised its holdings in shares of GeneDx by 12.9% during the first quarter. Pictet Asset Management Holding SA now owns 3,300 shares of the company’s stock valued at $212,000 after acquiring an additional 378 shares in the last quarter. Hedge funds and other institutional investors own 61.72% of the company’s stock.

GeneDx Company Profile

GeneDx is a genomic testing company focused on helping clinicians diagnose rare and inherited conditions. Its services include whole exome and whole genome sequencing, along with other genetic tests and clinical interpretation of results.

The company’s testing is used by healthcare providers to support diagnosis and care decisions, particularly for patients with suspected rare genetic disorders. GeneDx also offers testing related to hereditary cancer risk.

Founded in 2000 by researchers with experience at the National Institutes of Health, GeneDx has developed its business around applying genomic information in clinical care.