Veracyte (NASDAQ:VCYT) Shares Gap Down on Disappointing Earnings

Veracyte, Inc. (NASDAQ:VCYT) gapped down before the market opened 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 traded.

The biotechnology company reported $0.36 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.29 by $0.07. Veracyte had a positive return on equity of 3.02% and a negative net margin of 2.18%. The firm had revenue of $118.63 million during the quarter, compared to analyst estimates of $110.73 million. During the same period last year, the company earned ($0.39) EPS.

Analyst Ratings Changes

A number of equities analysts have weighed in on the company. Morgan Stanley lifted their price objective on Veracyte from $26.00 to $28.00 and gave the company an “underweight” rating in a research note on Monday, November 18th. Needham & Company LLC restated a “buy” rating and set a $51.00 price target on shares of Veracyte in a research report on Tuesday. Guggenheim reiterated a “buy” rating and issued a $45.00 price objective on shares of Veracyte in a research report on Tuesday. Scotiabank upped their price target on Veracyte from $40.00 to $44.00 and gave the stock a “sector outperform” rating in a report on Friday, November 8th. Finally, Wolfe Research began coverage on Veracyte in a research report on Friday, November 15th. They issued an “outperform” rating and a $50.00 price objective for the company. One analyst has rated the stock with a sell rating, two have assigned a hold rating and six have assigned a buy rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $43.00.

Insiders Place Their Bets

In other news, Director Karin Eastham sold 10,000 shares of the firm’s stock in a transaction on Thursday, January 2nd. The shares were sold at an average price of $40.30, for a total value of $403,000.00. Following the transaction, the director now owns 18,497 shares of the company’s stock, valued at approximately $745,429.10. This trade represents a 35.09 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Rebecca Chambers sold 7,000 shares of the firm’s stock in a transaction dated Tuesday, December 3rd. The shares were sold at an average price of $43.23, for a total value of $302,610.00. Following the sale, the chief financial officer now owns 114,037 shares in the company, valued at approximately $4,929,819.51. The trade was a 5.78 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 19,533 shares of company stock valued at $815,584. Company insiders own 1.30% of the company’s stock.

Institutional Trading of Veracyte

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. GF Fund Management CO. LTD. bought a new stake in shares of Veracyte during the 4th quarter valued at about $64,000. Palisades Investment Partners LLC acquired a new position in shares of Veracyte during the fourth quarter valued at $6,487,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its position in shares of Veracyte by 20.8% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 174,463 shares of the biotechnology company’s stock worth $6,909,000 after acquiring an additional 30,059 shares during the last quarter. Vident Advisory LLC bought a new stake in Veracyte in the 4th quarter valued at about $364,000. Finally, State of Wyoming boosted its stake in Veracyte by 237.5% during the 4th quarter. State of Wyoming now owns 9,682 shares of the biotechnology company’s stock valued at $383,000 after purchasing an additional 6,813 shares during the period.

Veracyte Stock Down 15.0 %

The firm’s 50 day simple moving average is $41.88 and its 200 day simple moving average is $37.60. The company has a market cap of $2.59 billion, a price-to-earnings ratio of -223.07 and a beta of 1.71.

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.