Veracyte (NASDAQ:VCYT) Shares Gap Down Following Weak Earnings

Veracyte, Inc. (NASDAQ:VCYT) gapped down prior to trading on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $39.36, but opened at $36.10. Veracyte shares last traded at $34.00, with a volume of 272,417 shares changing hands.

The biotechnology company reported $0.24 EPS for the quarter, missing analysts’ consensus estimates of $0.29 by ($0.05). Veracyte had a negative net margin of 2.18% and a positive return on equity of 3.02%. The business had revenue of $118.63 million for the quarter, compared to the consensus estimate of $116.69 million. During the same quarter in the previous year, the business earned ($0.39) earnings per share.

Wall Street Analyst Weigh In

A number of research firms have commented on VCYT. Needham & Company LLC reaffirmed a “buy” rating and set a $51.00 price target on shares of Veracyte in a research report on Tuesday. Morgan Stanley upped their price objective on shares of Veracyte from $26.00 to $28.00 and gave the stock an “underweight” rating in a report on Monday, November 18th. Scotiabank boosted their price target on shares of Veracyte from $40.00 to $44.00 and gave the company a “sector outperform” rating in a research report on Friday, November 8th. UBS Group lifted their price objective on Veracyte from $43.00 to $46.00 and gave the company a “buy” rating in a research report on Thursday, November 7th. Finally, Wolfe Research initiated coverage on Veracyte in a research report on Friday, November 15th. They issued an “outperform” rating and a $50.00 target price for the company. One investment analyst has rated the stock with a sell rating, two have assigned a hold rating and six have issued a buy rating to the stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $42.00.

Insider Buying and Selling

In related news, CAO Jonathan Wygant sold 5,032 shares of the company’s stock in a transaction on Wednesday, November 27th. The stock was sold at an average price of $42.89, for a total transaction of $215,822.48. Following the completion of the sale, the chief accounting officer now owns 42,313 shares in the company, valued at approximately $1,814,804.57. This represents a 10.63 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Karin Eastham sold 10,000 shares of the business’s stock in a transaction on Thursday, January 2nd. The shares were sold at an average price of $40.30, for a total transaction of $403,000.00. Following the sale, the director now directly owns 18,497 shares of the company’s stock, valued at approximately $745,429.10. The trade was a 35.09 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 24,565 shares of company stock worth $1,031,406 in the last quarter. Corporate insiders own 1.30% of the company’s stock.

Institutional Investors Weigh In On Veracyte

A number of institutional investors and hedge funds have recently bought and sold shares of VCYT. Jones Financial Companies Lllp boosted its holdings in shares of Veracyte by 49.7% in the 4th quarter. Jones Financial Companies Lllp now owns 714 shares of the biotechnology company’s stock worth $28,000 after purchasing an additional 237 shares during the period. GF Fund Management CO. LTD. bought a new position in Veracyte in the 4th quarter worth about $64,000. US Bancorp DE raised its stake in shares of Veracyte by 57.4% during the fourth quarter. US Bancorp DE now owns 1,774 shares of the biotechnology company’s stock valued at $70,000 after acquiring an additional 647 shares in the last quarter. Principal Securities Inc. grew its stake in Veracyte by 34.1% in the fourth quarter. Principal Securities Inc. now owns 1,909 shares of the biotechnology company’s stock worth $76,000 after purchasing an additional 485 shares in the last quarter. Finally, KBC Group NV lifted its holdings in shares of Veracyte by 13.7% in the 3rd quarter. KBC Group NV now owns 2,677 shares of the biotechnology company’s stock worth $91,000 after buying an additional 323 shares during the period.

Veracyte Trading Down 12.9 %

The firm has a market cap of $2.66 billion, a P/E ratio of -229.81 and a beta of 1.71. The business has a 50-day moving average price of $41.88 and a 200-day moving average price of $37.60.

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.