GeneDx (NASDAQ:WGS) Shares Up 5.1% – Should You Buy?

GeneDx Holdings Corp. (NASDAQ:WGS)’s stock price shot up 5.1% on Tuesday . The company traded as high as $57.76 and last traded at $58.2640. 56,346 shares traded hands during trading, a decline of 95% from the average session volume of 1,036,675 shares. The stock had previously closed at $55.42.

Key Headlines Impacting GeneDx

Here are the key news stories impacting GeneDx this week:

• Neutral Sentiment: Multiple law firms, including Hagens Berman, Robbins LLP, KSF, Faruqi & Faruqi, Bernstein Liebhard, Rosen, Pomerantz, and others, announced or promoted a securities class action against GeneDx, with a lead-plaintiff deadline of August 3, 2026. Article Title
• Neutral Sentiment: The lawsuit centers on allegations that GeneDx made misleading statements about the Fabric Genomics acquisition, which was followed by a reported 49% stock drop after the company disclosed a major write-off and weaker-than-expected Q1 2026 results. Article Title
• Neutral Sentiment: One report highlighted a $227,000 insider sale while noting revenue still climbed 17%, adding to investor attention around management’s confidence versus the company’s ongoing execution issues. Article Title
• Negative Sentiment: Overall, the news flow is unfavorable for GeneDx because it reinforces concerns about acquisition-related missteps, earnings disappointment, and potential legal liability for the company and its officers.

Analyst Upgrades and Downgrades

WGS has been the subject of several research reports. Wall Street Zen downgraded shares of GeneDx from a “hold” rating to a “sell” rating in a report on Saturday, May 9th. Weiss Ratings downgraded GeneDx from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Monday, June 1st. Zacks Research lowered GeneDx from a “strong-buy” rating to a “hold” rating in a research note on Friday, April 24th. Piper Sandler restated an “overweight” rating and set a $63.00 price target (up from $50.00) on shares of GeneDx in a report on Tuesday. Finally, Wells Fargo & Company reaffirmed an “overweight” rating and issued a $75.00 price objective (down from $155.00) on shares of GeneDx in a research note on Tuesday, May 5th. Six analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $86.86.

GeneDx Stock Performance

The business’s fifty day moving average price is $54.18 and its two-hundred day moving average price is $83.79. The company has a debt-to-equity ratio of 0.38, a quick ratio of 2.95 and a current ratio of 3.09. The stock has a market capitalization of $1.89 billion, a P/E ratio of -23.71 and a beta of 1.96.

GeneDx (NASDAQ:WGS) last released its quarterly earnings results on Monday, May 4th. The company reported ($0.28) EPS for the quarter, missing the consensus estimate of ($0.06) by ($0.22). GeneDx had a positive return on equity of 9.15% and a negative net margin of 17.58%.The company had revenue of $102.25 million during the quarter, compared to analysts’ expectations of $112.46 million. During the same quarter in the prior year, the business posted ($0.23) EPS. As a group, sell-side analysts forecast that GeneDx Holdings Corp. will post -1 earnings per share for the current year.

Insider Activity at GeneDx

In related news, Director Casdin Capital, Llc purchased 185,000 shares of the firm’s stock in a transaction that occurred on Tuesday, May 19th. The shares were bought at an average price of $42.60 per share, for a total transaction of $7,881,000.00. Following the acquisition, the director owned 3,367,164 shares of the company’s stock, valued at approximately $143,441,186.40. This represents a 5.81% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Keith A. Meister purchased 533,758 shares of the stock in a transaction that occurred on Thursday, May 7th. The stock was bought at an average price of $37.86 per share, with a total value of $20,208,077.88. Following the completion of the transaction, the director owned 3,761,908 shares of the company’s stock, valued at $142,425,836.88. The trade was a 16.53% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last three months, insiders have bought 2,256,420 shares of company stock worth $93,144,340 and have sold 21,699 shares worth $1,295,646. Insiders own 25.17% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in WGS. Kestra Advisory Services LLC purchased a new stake in shares of GeneDx in the fourth quarter valued at approximately $27,000. Fifth Third Bancorp bought a new stake in GeneDx during the 1st quarter valued at $31,000. Quarry LP lifted its holdings in shares of GeneDx by 248.8% in the 3rd quarter. Quarry LP now owns 293 shares of the company’s stock worth $32,000 after buying an additional 209 shares during the period. Ramirez Asset Management Inc. bought a new position in shares of GeneDx during the 4th quarter worth $33,000. Finally, Greenline Wealth Management LLC purchased a new position in shares of GeneDx during the fourth quarter valued at $33,000. Hedge funds and other institutional investors own 61.72% of the company’s stock.

About GeneDx

GeneDx is a clinical diagnostics company specializing in comprehensive genetic and genomic testing for rare and inherited disorders. The company offers a broad portfolio of assays, including targeted gene panels, whole exome sequencing, whole genome sequencing and chromosomal microarray analysis. GeneDx’s laboratory services support the diagnosis of a wide range of conditions—from rare pediatric diseases and hereditary cancer syndromes to neuromuscular and metabolic disorders—by providing clinicians with detailed variant interpretation and reporting.

Founded in 2000 and based in Gaithersburg, Maryland, GeneDx was established with the aim of accelerating the translation of genomic discoveries into clinical care.