Veracyte (NASDAQ:VCYT) Sees Large Volume Increase – Here’s Why

Veracyte, Inc. (NASDAQ:VCYT) shares saw unusually-strong trading volume on Friday. Approximately 1,904,920 shares changed hands during trading, an increase of 57% from the average daily volume of 1,211,597 shares. The stock last traded at $24.31 and had previously closed at $24.00.

More Veracyte News

Here are the key news stories impacting Veracyte this week:

• Positive Sentiment: Veracyte reported Q3 adjusted EPS of $0.51, above estimates of about $0.41, and revenue of $151.8 million versus estimates of $147.1 million. Revenue grew 15% year over year. The company also authorized a $100 million share-repurchase program. Veracyte Q3 results
• Neutral Sentiment: Two law firms announced investigations into potential securities-law claims after the stock’s steep decline. These are investigations, not findings of wrongdoing, but add a headline risk for shareholders. Levi & Korsinsky investigation notice
• Negative Sentiment: The key concern is that Decipher Prostate test volume fell short of expectations, prompting Veracyte to lower its guidance. Investors appear focused on the potential business impact despite the quarterly earnings and revenue beat. Veracyte Q3 results and stock decline
• Negative Sentiment: Leerink Partners downgraded VCYT from Outperform to Market Perform and cut its price target; Needham also lowered its target, though it maintained a Buy rating. The stock has also fallen below its 200-day moving average, adding a bearish technical signal. Leerink downgrade

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on the stock. Weiss Ratings cut shares of Veracyte from a “hold (c+)” rating to a “hold (c)” rating in a report on Thursday, September 24th. Needham & Company LLC dropped their price objective on shares of Veracyte from $69.00 to $46.00 and set a “buy” rating on the stock in a report on Thursday. Morgan Stanley cut their target price on Veracyte from $47.00 to $44.00 and set an “underweight” rating on the stock in a research report on Tuesday, August 4th. Canaccord Genuity Group reduced their target price on Veracyte from $60.00 to $50.00 and set a “hold” rating for the company in a research note on Monday, August 3rd. Finally, Leerink Partners cut Veracyte from an “outperform” rating to a “market perform” rating and lowered their price target for the stock from $55.00 to $35.00 in a research report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Veracyte currently has an average rating of “Moderate Buy” and a consensus price target of $51.40.

Veracyte Stock Performance

The company’s fifty day moving average is $44.49 and its two-hundred day moving average is $42.95. The company has a market cap of $1.94 billion, a price-to-earnings ratio of 15.65 and a beta of 1.98.

Veracyte (NASDAQ:VCYT) last posted its quarterly earnings results on Wednesday, November 4th. The biotechnology company reported $0.51 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.41 by $0.10. Veracyte had a net margin of 21.80% and a return on equity of 9.13%. The company had revenue of $151.75 million during the quarter, compared to analyst estimates of $147.13 million. During the same period last year, the firm posted $0.51 EPS. Veracyte’s revenue for the quarter was up 15.1% compared to the same quarter last year. On average, sell-side analysts anticipate that Veracyte, Inc. will post 1.32 EPS for the current fiscal year.

Insider Transactions at Veracyte

In related news, Director Karin Eastham sold 14,850 shares of the firm’s stock in a transaction on Tuesday, October 27th. The shares were sold at an average price of $50.00, for a total transaction of $742,500.00. Following the completion of the transaction, the director owned 10,247 shares of the company’s stock, valued at $512,350. This trade represents a 59.17% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Muna Bhanji sold 1,864 shares of the firm’s stock in a transaction on Monday, October 19th. The stock was sold at an average price of $43.70, for a total transaction of $81,456.80. Following the transaction, the director directly owned 40,854 shares of the company’s stock, valued at approximately $1,785,319.80. This trade represents a 4.36% decrease in their position. 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. Over the last three months, insiders have sold 62,609 shares of company stock valued at $2,858,904. 1.60% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Veracyte

A number of institutional investors have recently modified their holdings of VCYT. BlackRock Inc. purchased a new stake in shares of Veracyte in the second quarter worth about $792,058,000. Congress Asset Management Co. acquired a new stake in Veracyte during the third quarter worth about $89,971,000. William Blair Investment Management LLC acquired a new stake in Veracyte during the second quarter worth about $84,078,000. Bank of America Corp DE purchased a new position in Veracyte during the second quarter valued at approximately $64,737,000. Finally, Legal & General Group Plc purchased a new position in Veracyte during the second quarter valued at approximately $50,398,000.

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.