GeneDx (NASDAQ:WGS) Reaches New 1-Year Low Following Weak Earnings

GeneDx Holdings Corp. (NASDAQ:WGS) reached a new 52-week low during mid-day trading on Tuesday after the company announced weaker than expected quarterly earnings. The company traded as low as $37.80 and last traded at $37.1970, with a volume of 695043 shares trading hands. The stock had previously closed at $67.93.

The company reported ($0.28) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.06) by ($0.22). The company had revenue of $102.25 million for the quarter, compared to analyst estimates of $112.46 million. GeneDx had a negative net margin of 4.92% and a positive return on equity of 14.73%. During the same period in the previous year, the firm posted ($0.23) earnings per share.

GeneDx News Roundup

Here are the key news stories impacting GeneDx this week:

• Positive Sentiment: Solid operational traction — GeneDx reported 34% year-over-year volume growth in exome and genome testing, a metric that supports long?term revenue potential if margin trends stabilize. Business Wire: Q1 Results & Outlook
• Neutral Sentiment: Company materials and the earnings call transcript are available for deeper color on drivers, cost items and management commentary — useful for investors wanting to parse forward guidance and margin assumptions. Earnings Call Transcript
• Negative Sentiment: Q1 results missed expectations: EPS of ($0.28) vs. consensus (~($0.06)) and revenue ~$102.3M vs. estimates near $112–114M; the quarter included a much larger operating and net loss and weaker cash flow, prompting negative investor reaction. Zacks: Q1 Loss & Revenue Miss QuiverQuant: Detailed Q1 Financials
• Negative Sentiment: Full?year revenue guidance was pulled down to ~$475–$490M versus a consensus near $549M, increasing investor concern about near?term growth and the path to profitability. Business Wire: Guidance Update
• Negative Sentiment: Analysts cut price targets: BTIG trimmed its target to $90 (from $170) and Guggenheim to $70 (from $100), both keeping buy ratings but signaling lower near?term valuation expectations. Such cuts can pressure sentiment and limit near?term upside. Benzinga: Analyst Target Cuts TickerReport: BTIG Note
• Negative Sentiment: Legal risk: a shareholder law firm (Johnson Fistel) announced an investigation into potential claims regarding executive conduct and investor losses, which can create uncertainty and potential litigation costs. GlobeNewswire: Investigation Notice
• Negative Sentiment: Insider selling: multiple insider sales have been reported recently (including CEO and other officers), which investors may view as a negative signal about near?term confidence. QuiverQuant: Insider Transactions American Banking News: CFO Sale

Analyst Ratings Changes

A number of research analysts have issued reports on WGS shares. Jefferies Financial Group set a $150.00 price objective on GeneDx in a report on Monday, February 23rd. Piper Sandler reiterated an “overweight” rating and set a $130.00 target price (down from $160.00) on shares of GeneDx in a research report on Tuesday, February 24th. Weiss Ratings reissued a “sell (d)” rating on shares of GeneDx in a report on Wednesday, January 21st. Wells Fargo & Company restated an “overweight” rating and issued a $75.00 price target on shares of GeneDx in a research report on Tuesday. Finally, BTIG Research decreased their price objective on shares of GeneDx from $170.00 to $90.00 and set a “buy” rating on the stock in a research note on Tuesday. Six investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, GeneDx has an average rating of “Moderate Buy” and a consensus target price of $98.33.

Insiders Place Their Bets

In other news, COO Bryan Dechairo sold 5,961 shares of the firm’s stock in a transaction on Wednesday, February 4th. The stock was sold at an average price of $85.70, for a total value of $510,857.70. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Keith A. Meister purchased 140,026 shares of the business’s stock in a transaction that occurred on Thursday, March 5th. The stock was acquired at an average cost of $81.19 per share, with a total value of $11,368,710.94. Following the completion of the acquisition, the director directly owned 3,228,150 shares of the company’s stock, valued at $262,093,498.50. The trade was a 4.53% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders have sold a total of 109,989 shares of company stock worth $7,888,023 over the last ninety days. Company insiders own 29.60% of the company’s stock.

Institutional Trading of GeneDx

Several hedge funds have recently modified their holdings of WGS. ARK Investment Management LLC acquired a new stake in shares of GeneDx in the 3rd quarter valued at $48,157,000. Principal Financial Group Inc. lifted its stake in shares of GeneDx by 340.4% during the third quarter. Principal Financial Group Inc. now owns 59,624 shares of the company’s stock valued at $6,424,000 after acquiring an additional 46,085 shares during the period. Impax Asset Management Group plc bought a new position in GeneDx in the third quarter valued at about $5,387,000. Sumitomo Mitsui Trust Group Inc. increased its position in GeneDx by 30.6% in the fourth quarter. Sumitomo Mitsui Trust Group Inc. now owns 381,725 shares of the company’s stock worth $49,647,000 after purchasing an additional 89,470 shares during the period. Finally, Telemark Asset Management LLC acquired a new stake in GeneDx in the third quarter worth about $12,929,000. 61.72% of the stock is owned by institutional investors.

GeneDx Price Performance

The company has a current ratio of 2.46, a quick ratio of 2.34 and a debt-to-equity ratio of 0.16. The stock has a market capitalization of $1.04 billion, a P/E ratio of -48.21 and a beta of 2.06. The company has a fifty day simple moving average of $71.45 and a two-hundred day simple moving average of $107.17.

GeneDx Company Profile

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.