Genomic Health Inc. (GHDX) Rating Increased to Buy at Zacks Investment Research
Genomic Health Inc. (NASDAQ:GHDX) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Tuesday. The firm currently has a $33.00 price target on the stock. Zacks Investment Research’s price objective would indicate a potential upside of 12.67% from the stock’s current price.
According to Zacks, “Genomic Health continues to experience strong test volume as well as revenue growth, across its global region. However, in the last reported second quarter 2016, gross margin continued to be weak as the company has been witnessing for the past few quarters. Additionally, fluctuations in the price of the marketable security continued to hamper the stock, which is expected to remain for the rest of 2016. Nevertheless, we are optimistic about the fact that despite a huge rise in cost of sales, the gross margin decline was comparatively moderate, on the back of a higher pace of revenue growth.”
GHDX has been the topic of a number of other reports. Leerink Swann restated a “buy” rating on shares of Genomic Health in a research note on Tuesday, June 21st. Jefferies Group lifted their price objective on shares of Genomic Health from $25.00 to $27.00 and gave the company a “hold” rating in a research note on Wednesday, August 17th. Bank of America Corp. set a $28.00 price objective on shares of Genomic Health and gave the company a “sell” rating in a research note on Wednesday, August 3rd. Finally, Canaccord Genuity restated a “buy” rating and issued a $38.00 price objective on shares of Genomic Health in a research note on Friday, August 5th. Two investment analysts have rated the stock with a sell rating, two have assigned a hold rating and six have assigned a buy rating to the company’s stock. Genomic Health currently has an average rating of “Hold” and an average target price of $32.50.
Genomic Health (NASDAQ:GHDX) traded up 0.99% on Tuesday, hitting $29.58. 72,691 shares of the company traded hands. Genomic Health has a 12 month low of $20.05 and a 12 month high of $35.79. The stock’s 50-day moving average is $27.62 and its 200 day moving average is $27.00. The stock’s market cap is $986.37 million.
Genomic Health (NASDAQ:GHDX) last posted its quarterly earnings data on Tuesday, August 2nd. The company reported ($0.18) EPS for the quarter, meeting analysts’ consensus estimates of ($0.18). The company had revenue of $81.97 million for the quarter, compared to analyst estimates of $81.27 million. Genomic Health had a negative net margin of 8.84% and a negative return on equity of 21.02%. Genomic Health’s quarterly revenue was up 16.1% on a year-over-year basis. During the same period in the previous year, the business posted ($0.29) earnings per share. Equities research analysts expect that Genomic Health will post ($0.47) earnings per share for the current fiscal year.
In related news, COO G Bradley Cole sold 5,000 shares of the business’s stock in a transaction dated Thursday, August 11th. The shares were sold at an average price of $28.87, for a total transaction of $144,350.00. Following the sale, the chief operating officer now owns 40,426 shares of the company’s stock, valued at $1,167,098.62. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Felix Baker acquired 100,000 shares of the firm’s stock in a transaction that occurred on Monday, August 15th. The shares were bought at an average cost of $27.02 per share, for a total transaction of $2,702,000.00. The disclosure for this purchase can be found here. Corporate insiders own 47.00% of the company’s stock.
A number of hedge funds have recently added to or reduced their stakes in the company. Bank of Montreal Can bought a new stake in Genomic Health during the second quarter worth approximately $187,000. Royal Bank of Canada boosted its position in shares of Genomic Health by 6,543.0% in the first quarter. Royal Bank of Canada now owns 8,503 shares of the company’s stock worth $210,000 after buying an additional 8,375 shares during the last quarter. AQR Capital Management LLC acquired a new position in shares of Genomic Health during the second quarter worth about $270,000. American International Group Inc. boosted its position in shares of Genomic Health by 3.2% in the second quarter. American International Group Inc. now owns 10,753 shares of the company’s stock worth $278,000 after buying an additional 334 shares during the last quarter. Finally, Nationwide Fund Advisors boosted its position in shares of Genomic Health by 3.0% in the second quarter. Nationwide Fund Advisors now owns 11,932 shares of the company’s stock worth $309,000 after buying an additional 351 shares during the last quarter. 88.92% of the stock is currently owned by hedge funds and other institutional investors.
About Genomic Health
Genomic Health, Inc is a healthcare company, which provides genomic-based diagnostic tests for the treatment of early stage cancer. The Company offers its Oncotype DX tests as a clinical laboratory service, where it analyzes the expression levels of genes in tumor tissue samples and provides physicians with a quantitative gene expression profile expressed as a single quantitative score, which it calls a Recurrence Score for invasive breast cancer and colon cancer, a DCIS Score for ductal carcinoma in situ (DCIS) and a Genomic Prostate Score for prostate cancer.
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