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

Veracyte, Inc. (NASDAQ:VCYT)’s stock price gapped down before the market opened on Tuesday following a dissappointing earnings announcement. 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 $0.36 EPS for the quarter, topping the consensus estimate of $0.29 by $0.07. The company had revenue of $118.63 million for the quarter, compared to analyst estimates of $110.73 million. Veracyte had a negative net margin of 2.18% and a positive return on equity of 3.02%. During the same quarter in the prior year, the business posted ($0.39) EPS.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on the stock. UBS Group raised their price target on shares of Veracyte from $46.00 to $49.00 and gave the stock a “buy” rating in a research report on Tuesday. Guggenheim reiterated a “buy” rating and set a $45.00 target price on shares of Veracyte in a research report on Tuesday. Needham & Company LLC reiterated a “buy” rating and set a $51.00 target price on shares of Veracyte in a research report on Tuesday. Scotiabank lifted their price target on shares of Veracyte from $40.00 to $44.00 and gave the company a “sector outperform” rating in a report on Friday, November 8th. Finally, Morgan Stanley lifted their price target on shares of Veracyte from $26.00 to $28.00 and gave the company an “underweight” rating in a report on Monday, November 18th. One equities research analyst has rated the stock with a sell rating, two have given a hold rating and six have given a buy rating to the company. According to data from MarketBeat.com, Veracyte presently has an average rating of “Moderate Buy” and an average target price of $43.00.

Insiders Place Their Bets

In related news, Director Karin Eastham sold 10,000 shares of the business’s stock in a transaction that occurred 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 completion of the transaction, the director now owns 18,497 shares in the company, valued at approximately $745,429.10. The trade was a 35.09 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Rebecca Chambers sold 7,000 shares of the business’s stock in a transaction that occurred on Tuesday, December 3rd. The shares were sold at an average price of $43.23, for a total transaction of $302,610.00. Following the transaction, the chief financial officer now owns 114,037 shares of the company’s stock, valued at approximately $4,929,819.51. This represents a 5.78 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 19,533 shares of company stock valued at $815,584. Insiders own 1.30% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of VCYT. Creative Planning acquired a new position in Veracyte during the third quarter valued at approximately $396,000. Blue Trust Inc. grew its holdings in Veracyte by 100.6% during the third quarter. Blue Trust Inc. now owns 2,781 shares of the biotechnology company’s stock valued at $95,000 after purchasing an additional 1,395 shares during the period. Assenagon Asset Management S.A. boosted its holdings in shares of Veracyte by 127.6% in the third quarter. Assenagon Asset Management S.A. now owns 29,455 shares of the biotechnology company’s stock valued at $1,003,000 after buying an additional 16,512 shares during the period. Mirae Asset Global Investments Co. Ltd. boosted its holdings in shares of Veracyte by 21.7% in the third quarter. Mirae Asset Global Investments Co. Ltd. now owns 2,778 shares of the biotechnology company’s stock valued at $94,000 after buying an additional 496 shares during the period. Finally, China Universal Asset Management Co. Ltd. boosted its holdings in shares of Veracyte by 64.5% in the third quarter. China Universal Asset Management Co. Ltd. now owns 14,773 shares of the biotechnology company’s stock valued at $503,000 after buying an additional 5,790 shares during the period.

Veracyte Stock Up 6.2 %

The company has a market cap of $2.75 billion, a price-to-earnings ratio of -236.87 and a beta of 1.71. The company’s fifty day moving average price is $41.71 and its two-hundred day moving average price is $37.63.

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.