TD Cowen Upgrades GeneDx Stock with Strong Price Forecast

GeneDx (NASDAQ:WGS) received a significant boost in its price target from equities research firm TD Cowen. In a recent report published on Tuesday, TD Cowen raised its price objective for GeneDx from $75.00 to an impressive $118.00. They also assigned a "buy" rating to the stock, indicating their positive outlook for the company's future performance.

This new price target suggests that investors could see a potential upside of approximately 31.49% from GeneDx's current market price. This represents a strong endorsement from TD Cowen, which is one of several firms that have recently commented on the stock.

Additional Analyst Ratings

Other analysts have also shown a growing interest in GeneDx. For instance, Wells Fargo & Company increased their target price on GeneDx shares from $34.00 to $75.00 while giving the stock an "equal weight" rating on October 30th. Craig Hallum also raised their price target for GeneDx from $70.00 to $95.00, giving it a "buy" rating on the same day. Similarly, The Goldman Sachs Group adjusted their price target on GeneDx from $54.00 to $70.00, offering a "neutral" rating as of October 30th.

In total, three investment analysts have labeled the stock with a hold rating, while three others have rated it as a buy. Based on the data from MarketBeat, GeneDx currently holds a consensus rating of "Moderate Buy" with an average price target of $70.67.

Recent Stock Performance

On the day the report was issued, shares of GeneDx rose by 0.1%, reaching $89.74. The stock experienced a trading volume of 803,706 shares, close to its average volume of 803,961. Key financial ratios indicate that GeneDx has a quick ratio of 2.27, a current ratio of 2.40, and a debt-to-equity ratio of 0.25. Over the past year, GeneDx's stock has seen a low of $2.80 and a high of $96.97, reflecting significant volatility and potential for growth.

Quarterly Earnings Report

GeneDx recently reported its quarterly earnings on October 29th, where it announced earnings per share (EPS) of $0.04, surpassing analysts’ consensus estimates that predicted a loss of $0.21 per share. The company reported revenue of $76.90 million for the quarter, significantly exceeding the expected $64.98 million. This represented a year-over-year revenue increase of 44.3%, offering a promising outlook for the future.

Insider Activity

In terms of insider transactions, CEO Katherine Stueland sold 18,006 shares of GeneDx stock on January 2nd at an average price of $78.18, totaling approximately $1.41 million. Despite this sale, she continues to hold 53,140 shares valued at around $4.15 million. Additionally, a major shareholder, the School of Medicine at Icahn, sold 865,800 shares on October 31st, bringing in about $64.94 million. These transactions illustrate a notable decrease in insider positions, with insiders having sold a total of 1,143,039 shares valued at approximately $84.82 million in the last quarter. Currently, corporate insiders own about 27.30% of GeneDx stocks.

Institutional Investments

In recent months, several large investors have adjusted their holdings of GeneDx. Acadian Asset Management LLC purchased new shares valued at approximately $34,000 in the second quarter, while CWM LLC acquired a stake worth about $89,000 in the third quarter. Verition Fund Management LLC grew its position by 12.9%, and American Century Companies Inc. increased its holdings by 36.1% in the second quarter. Institutional investors currently own about 61.72% of GeneDx stock.

About GeneDx

GeneDx Holdings Corp. focuses on providing genomics-related diagnostic and information services. One of its innovative offerings includes Centrellis, a health intelligence platform powered by artificial intelligence that enables scientists to analyze clinical and genomic data, ultimately delivering comprehensive health insights.

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