Veracyte (NASDAQ:VCYT) Shares Gap Up Following Strong Earnings

Shares of Veracyte, Inc. (NASDAQ:VCYT) gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $36.12, but opened at $40.00. Veracyte shares last traded at $44.1550, with a volume of 671,542 shares.

The biotechnology company reported $0.51 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.32 by $0.19. Veracyte had a return on equity of 6.07% and a net margin of 5.50%.The business had revenue of $131.87 million during the quarter, compared to the consensus estimate of $124.62 million. During the same quarter last year, the firm posted $0.33 EPS. The company’s quarterly revenue was up 13.8% on a year-over-year basis. Veracyte has set its FY 2025 guidance at EPS.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on VCYT. UBS Group restated a “buy” rating on shares of Veracyte in a research report on Wednesday. Morgan Stanley set a $28.00 price target on Veracyte and gave the stock an “underweight” rating in a research report on Friday, August 8th. Guggenheim raised their price objective on Veracyte from $40.00 to $45.00 and gave the company a “buy” rating in a research note on Wednesday. Zacks Research raised Veracyte from a “hold” rating to a “strong-buy” rating in a research note on Monday, October 6th. Finally, Needham & Company LLC raised their price objective on Veracyte from $41.00 to $44.00 and gave the company a “buy” rating in a research note on Wednesday. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, two have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $42.30.

Insider Buying and Selling

In related news, CEO Marc Stapley sold 7,667 shares of Veracyte stock in a transaction that occurred on Thursday, September 4th. The stock was sold at an average price of $30.41, for a total value of $233,153.47. Following the transaction, the chief executive officer directly owned 334,185 shares of the company’s stock, valued at $10,162,565.85. The trade was a 2.24% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Annie Mcguire sold 2,283 shares of Veracyte stock in a transaction that occurred on Friday, September 19th. The stock was sold at an average price of $33.69, for a total value of $76,914.27. Following the completion of the transaction, the senior vice president directly owned 91,599 shares in the company, valued at approximately $3,085,970.31. This represents a 2.43% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 18,299 shares of company stock valued at $610,799 over the last ninety days. 1.40% of the stock is owned by company insiders.

Hedge Funds Weigh In On Veracyte

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Bessemer Group Inc. acquired a new position in shares of Veracyte in the third quarter worth approximately $706,000. Envestnet Asset Management Inc. increased its holdings in Veracyte by 34.7% in the third quarter. Envestnet Asset Management Inc. now owns 92,185 shares of the biotechnology company’s stock worth $3,165,000 after purchasing an additional 23,747 shares in the last quarter. Allianz Asset Management GmbH increased its holdings in Veracyte by 53.2% in the third quarter. Allianz Asset Management GmbH now owns 134,097 shares of the biotechnology company’s stock worth $4,604,000 after purchasing an additional 46,573 shares in the last quarter. Atlantic Union Bankshares Corp bought a new stake in Veracyte in the third quarter worth approximately $172,000. Finally, Principal Financial Group Inc. increased its holdings in Veracyte by 667.9% in the third quarter. Principal Financial Group Inc. now owns 435,761 shares of the biotechnology company’s stock worth $14,960,000 after purchasing an additional 379,014 shares in the last quarter.

Veracyte Price Performance

The firm has a market capitalization of $3.47 billion, a P/E ratio of 133.83 and a beta of 2.11. The stock has a fifty day simple moving average of $33.78 and a two-hundred day simple moving average of $29.83.

About Veracyte

Veracyte, Inc engages in the research, development and commercialization of diagnostic products. The firm’s portfolio includes Afirma, Percepta, and Envisia. It intends to treat thyroid cancer, improve lung cancer screening, and clarify the diagnosis of idiopathic pulmonary fibrosis. The company was founded by Bonnie H.