Veracyte (NASDAQ:VCYT) Cut to “Hold” at Wolfe Research

Veracyte (NASDAQ:VCYT) was downgraded by analysts at Wolfe Research from a “strong-buy” rating to a “hold” rating in a note issued to investors on Friday, Zacks reports.

A number of other research analysts have also weighed in on the company. Morgan Stanley cut their price objective on Veracyte from $47.00 to $44.00 and set an “underweight” rating on the stock in a report on Tuesday, August 4th. Zacks Research downgraded Veracyte from a “strong-buy” rating to a “hold” rating in a report on Friday, October 2nd. Piper Sandler dropped their target price on Veracyte from $66.00 to $54.00 and set an “overweight” rating on the stock in a research report on Tuesday, August 4th. Canaccord Genuity Group lowered their price target on shares of Veracyte from $60.00 to $50.00 and set a “hold” rating on the stock in a report on Monday, August 3rd. Finally, Stephens lowered their price target on shares of Veracyte from $68.00 to $55.00 and set an “overweight” rating on the stock in a report on Tuesday, August 4th. Six research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $51.40.

Veracyte Price Performance

Veracyte stock traded up $0.16 during trading hours on Friday, reaching $24.16. The stock had a trading volume of 6,580,555 shares, compared to its average volume of 1,170,560. The business’s 50 day moving average price is $44.07 and its 200-day moving average price is $42.87. Veracyte has a 52 week low of $21.91 and a 52 week high of $60.91. The company has a market cap of $1.94 billion, a price-to-earnings ratio of 15.59 and a beta of 1.98.

Veracyte (NASDAQ:VCYT) last announced its earnings results on Wednesday, November 4th. The biotechnology company reported $0.51 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.41 by $0.10. The company had revenue of $151.75 million for the quarter, compared to analyst estimates of $147.13 million. Veracyte had a return on equity of 9.26% and a net margin of 20.37%. The firm’s quarterly revenue was up 15.1% compared to the same quarter last year. During the same period in the prior year, the company posted $0.51 EPS. On average, sell-side analysts forecast that Veracyte will post 1.32 EPS for the current fiscal year.

Insider Transactions at Veracyte

In other Veracyte news, insider John Leite sold 4,015 shares of the firm’s stock in a transaction that occurred on Monday, September 21st. The stock was sold at an average price of $40.00, for a total value of $160,600.00. Following the sale, the insider directly owned 124,329 shares of the company’s stock, valued at approximately $4,973,160. This trade represents a 3.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Phillip G. Febbo sold 13,110 shares of the company’s stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $43.05, for a total value of $564,385.50. Following the transaction, the insider directly owned 133,048 shares of the company’s stock, valued at approximately $5,727,716.40. The trade was a 8.97% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 62,609 shares of company stock worth $2,858,904 over the last quarter. Company insiders own 1.60% of the company’s stock.

Institutional Investors Weigh In On Veracyte

Several institutional investors have recently bought and sold shares of the company. William Blair Investment Management LLC boosted its position in Veracyte by 89.2% during the third quarter. William Blair Investment Management LLC now owns 2,709,212 shares of the biotechnology company’s stock worth $124,732,000 after acquiring an additional 1,277,616 shares during the last quarter. Allworth Financial LP lifted its holdings in Veracyte by 81.4% during the 3rd quarter. Allworth Financial LP now owns 1,533 shares of the biotechnology company’s stock worth $71,000 after buying an additional 688 shares in the last quarter. Russell Investments Group Ltd. lifted its holdings in Veracyte by 7.8% during the 3rd quarter. Russell Investments Group Ltd. now owns 97,813 shares of the biotechnology company’s stock worth $4,503,000 after buying an additional 7,088 shares in the last quarter. Eurizon Capital SGR S.p.A. acquired a new stake in Veracyte during the 3rd quarter worth approximately $34,000. Finally, Fifth Third Bancorp boosted its position in Veracyte by 7.5% in the 3rd quarter. Fifth Third Bancorp now owns 55,232 shares of the biotechnology company’s stock valued at $2,543,000 after buying an additional 3,831 shares during the period.

Key Headlines Impacting Veracyte

Here are the key news stories impacting Veracyte this week:

• Positive Sentiment: Veracyte reported Q3 adjusted EPS of $0.51, ahead of estimates, and revenue of $151.75 million, up 15.1% year over year and above consensus. Veracyte tops Q3 earnings and revenue estimates
• Positive Sentiment: The company authorized a share buyback plan, which could provide some support for the stock, though the provided report does not specify its size or timing. Veracyte authorizes a buyback plan
• Negative Sentiment: The main concern is Veracyte’s reduced 2026 revenue outlook, tied to slower-than-expected growth in Decipher Prostate volumes. Management also cited increased investment in breast and bladder cancer tests, potentially weighing on near-term margins and growth. Q3 call highlights slower growth and added investment
• Negative Sentiment: Analyst sentiment weakened after the outlook cut: Leerink Partners downgraded VCYT to Market Perform from Outperform and lowered its price target to $35 from $55. Needham also reduced its target, to $46 from $69, while retaining a Buy rating. Veracyte downgraded after guidance cut
• Negative Sentiment: Several law firms announced investigations into potential securities claims following the company’s disclosures and sharp share-price decline. These are investigations, not findings of wrongdoing, but may add uncertainty for investors. Shareholder investigation notice

Veracyte Company Profile

Veracyte, Inc is a diagnostics company that develops genomic tests to help physicians diagnose cancer, assess disease risk and guide treatment decisions. Its tests are designed to provide additional molecular information from patient samples, often helping reduce uncertainty and support more personalized care.

The company’s portfolio includes Afirma tests for thyroid nodules, Decipher tests for prostate cancer, Percepta tests for lung cancer and Envisio tests for breast cancer. Veracyte also develops and commercializes additional genomic assays intended for use across various cancer types and clinical settings.

Founded in 2008 and headquartered in South San Francisco, California, Veracyte primarily serves the U.S.