Castle Biosciences (NASDAQ:CSTL) Rating Increased to Hold at Wall Street Zen

Wall Street Zen upgraded shares of Castle Biosciences (NASDAQ:CSTL) from a sell rating to a hold rating in a research note issued to investors on Saturday morning.

Other analysts have also issued research reports about the stock. Zacks Research lowered shares of Castle Biosciences from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, May 26th. KeyCorp set a $35.00 price target on shares of Castle Biosciences in a research note on Friday, May 29th. Canaccord Genuity Group lowered their price objective on Castle Biosciences from $50.00 to $40.00 and set a “buy” rating on the stock in a report on Monday, April 20th. Robert W. Baird set a $36.00 price objective on Castle Biosciences in a research note on Friday. Finally, Roth Capital began coverage on Castle Biosciences in a research report on Wednesday, June 24th. They issued a “buy” rating and a $40.00 target price on the stock. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Castle Biosciences currently has a consensus rating of “Moderate Buy” and an average price target of $41.43.

Castle Biosciences Trading Up 4.5%

Shares of NASDAQ:CSTL opened at $28.00 on Friday. The business’s 50 day moving average price is $22.76 and its 200-day moving average price is $26.52. Castle Biosciences has a 1 year low of $14.59 and a 1 year high of $44.28. The firm has a market capitalization of $849.24 million, a price-to-earnings ratio of -42.42 and a beta of 1.00. The company has a debt-to-equity ratio of 0.02, a current ratio of 6.75 and a quick ratio of 6.53.

Castle Biosciences (NASDAQ:CSTL) last issued its quarterly earnings results on Thursday, July 30th. The company reported ($0.07) EPS for the quarter, topping the consensus estimate of ($0.41) by $0.34. The company had revenue of $99.86 million during the quarter, compared to analyst estimates of $86.23 million. Castle Biosciences had a negative net margin of 5.43% and a negative return on equity of 4.16%. On average, equities research analysts forecast that Castle Biosciences will post -1.56 earnings per share for the current fiscal year.

Insider Transactions at Castle Biosciences

In other Castle Biosciences news, COO Kristen M. Oelschlager sold 8,586 shares of the firm’s stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $24.42, for a total value of $209,670.12. Following the transaction, the chief operating officer directly owned 21,874 shares of the company’s stock, valued at $534,163.08. This trade represents a 28.19% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Derek J. Maetzold sold 3,622 shares of the firm’s stock in a transaction that occurred on Monday, July 27th. The stock was sold at an average price of $24.16, for a total transaction of $87,507.52. Following the completion of the transaction, the insider directly owned 11,812 shares in the company, valued at $285,377.92. This trade represents a 23.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 55,025 shares of company stock valued at $1,252,199. 6.10% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Summit Partners Public Asset Management LLC lifted its stake in Castle Biosciences by 164.7% during the 4th quarter. Summit Partners Public Asset Management LLC now owns 1,058,725 shares of the company’s stock worth $41,184,000 after acquiring an additional 658,725 shares in the last quarter. SummitTX Capital L.P. grew its position in Castle Biosciences by 285.0% in the 1st quarter. SummitTX Capital L.P. now owns 67,033 shares of the company’s stock valued at $1,646,000 after acquiring an additional 49,623 shares in the last quarter. Eventide Asset Management LLC acquired a new position in Castle Biosciences in the 4th quarter valued at about $11,864,000. KBC Group NV purchased a new stake in Castle Biosciences during the first quarter worth about $907,000. Finally, SG Americas Securities LLC increased its stake in Castle Biosciences by 1,051.8% during the first quarter. SG Americas Securities LLC now owns 244,886 shares of the company’s stock worth $6,012,000 after purchasing an additional 223,624 shares during the period. 92.60% of the stock is currently owned by hedge funds and other institutional investors.

More Castle Biosciences News

Here are the key news stories impacting Castle Biosciences this week:

• Positive Sentiment: Revenue significantly exceeded expectations: Second-quarter revenue was approximately $103.5 million, up 20.1% year over year and above analyst estimates near $86 million-$88 million. Gross profit increased 16.5% to $79.8 million. Castle Biosciences Reports Second Quarter 2026 Results
• Positive Sentiment: Loss was narrower than expected: Adjusted loss was $0.07 per share, compared with the consensus estimate of a $0.41-$0.44 loss. The operating loss narrowed to $3.1 million, supporting the view that improving scale may help profitability over time. Castle Biosciences Reports Q2 Loss, Tops Revenue Estimates
• Positive Sentiment: Full-year outlook was raised: Castle now expects 2026 revenue of $365 million to $375 million, above the approximately $353.2 million analyst consensus. The higher outlook strengthens the growth narrative and likely provided the main catalyst for the stock’s advance. Castle Biosciences Lifts 2026 Outlook After Q2 Growth
• Neutral Sentiment: Liquidity remains solid: The company generated $15.2 million in operating cash flow and ended the quarter with $62.1 million in cash, while maintaining relatively low leverage. However, capital spending was $8.7 million and net profitability has not yet been achieved. Castle Biosciences Q2 2026 Earnings Call Transcript
• Negative Sentiment: Insider selling remains a risk signal: Chief Executive Officer Derek Maetzold and other executives have reported stock sales, with the transactions conducted under pre-arranged Rule 10b5-1 plans. While these sales do not necessarily indicate deteriorating business conditions, the absence of reported insider purchases may temper investor enthusiasm.

About Castle Biosciences

Castle Biosciences, Inc is a molecular diagnostics company specializing in the development and commercialization of prognostic and diagnostic tests for patients with dermatologic conditions. The company’s proprietary portfolio of genomic assays is designed to improve risk assessment and guide clinical decision-making for individuals with skin cancers and other skin-related diseases. By combining genomic data with advanced statistical algorithms, Castle Biosciences seeks to provide actionable insights that help physicians tailor treatment plans and monitoring strategies.

The company’s flagship test, DecisionDx-Melanoma, evaluates the probability of metastasis in patients diagnosed with cutaneous melanoma, supporting more personalized surveillance and therapeutic approaches.