GeneDx (NASDAQ:WGS) Stock Price Down 7.6% – What’s Next?

Shares of GeneDx Holdings Corp. (NASDAQ:WGS) dropped 7.6% on Wednesday . The company traded as low as $56.77 and last traded at $55.9990. 603,174 shares changed hands during trading, a decline of 42% from the average session volume of 1,043,503 shares. The stock had previously closed at $60.60.

Key Headlines Impacting GeneDx

Here are the key news stories impacting GeneDx this week:

• Positive Sentiment: GeneDx appointed Mark Gardner as its new company president, a leadership move that may improve operational focus and execution. GeneDx Appoints Mark Gardner as New Company President
• Neutral Sentiment: CEO Katherine Stueland and CFO Kevin Feeley disclosed stock sales, but both were reportedly made to cover tax withholding obligations tied to equity vesting, which reduces the likelihood that the sales signal a negative business view. SEC filing for CEO sale SEC filing for CFO sale
• Negative Sentiment: Multiple law firms are highlighting a securities class action against GeneDx over alleged misstatements about the Fabric Genomics deal and related performance issues, with a lead-plaintiff deadline of August 3, 2026. Class action lawsuit notice
• Negative Sentiment: The lawsuit coverage keeps attention on GeneDx’s prior earnings disappointment and the large stock decline that followed, reinforcing concerns about acquisition execution and investor confidence. Hagens Berman class action article

Analyst Ratings Changes

WGS has been the subject of a number of research reports. Piper Sandler reissued an “overweight” rating and issued a $130.00 price objective (down from $160.00) on shares of GeneDx in a research note on Tuesday, February 24th. Canaccord Genuity Group set a $75.00 target price on GeneDx and gave the stock a “buy” rating in a research report on Tuesday, May 5th. Guggenheim cut their target price on GeneDx from $100.00 to $70.00 and set a “buy” rating on the stock in a report on Tuesday, May 5th. Craig Hallum reissued a “buy” rating and issued a $85.00 price target on shares of GeneDx in a research report on Tuesday, May 5th. Finally, Wall Street Zen downgraded shares of GeneDx from a “hold” rating to a “sell” rating in a research report on Saturday, May 9th. Six analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $96.43.

GeneDx Stock Performance

The firm has a market cap of $1.75 billion, a P/E ratio of -22.02 and a beta of 1.96. The company has a current ratio of 3.09, a quick ratio of 2.95 and a debt-to-equity ratio of 0.38. The company’s 50-day moving average is $54.38 and its two-hundred day moving average is $86.68.

GeneDx (NASDAQ:WGS) last released its quarterly earnings results on Monday, May 4th. The company reported ($0.28) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.06) by ($0.22). The company had revenue of $102.25 million for the quarter, compared to analyst estimates of $112.46 million. GeneDx had a negative net margin of 17.58% and a positive return on equity of 9.15%. During the same quarter last year, the firm posted ($0.23) EPS. As a group, equities analysts predict that GeneDx Holdings Corp. will post -1 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Casdin Capital, Llc purchased 185,000 shares of the firm’s stock in a transaction that occurred on Tuesday, May 19th. The stock was acquired at an average price of $42.60 per share, for a total transaction of $7,881,000.00. Following the completion of the acquisition, the director owned 3,367,164 shares of the company’s stock, valued at $143,441,186.40. This represents a 5.81% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Keith A. Meister purchased 533,758 shares of the stock in a transaction that occurred on Thursday, May 7th. The stock was bought at an average cost of $37.86 per share, with a total value of $20,208,077.88. Following the completion of the transaction, the director directly owned 3,761,908 shares in the company, valued at $142,425,836.88. The trade was a 16.53% increase in their position. The SEC filing for this purchase provides additional information. In the last 90 days, insiders bought 2,256,420 shares of company stock worth $93,144,340 and sold 68,632 shares worth $4,260,404. 25.17% of the stock is owned by company insiders.

Institutional Trading of GeneDx

Several institutional investors have recently made changes to their positions in the company. Kestra Advisory Services LLC purchased a new stake in shares of GeneDx in the fourth quarter valued at about $27,000. Jones Financial Companies Lllp grew its position in GeneDx by 664.3% in the 3rd quarter. Jones Financial Companies Lllp now owns 214 shares of the company’s stock worth $25,000 after purchasing an additional 186 shares in the last quarter. Ramirez Asset Management Inc. bought a new stake in GeneDx in the 4th quarter worth about $33,000. Greenline Wealth Management LLC purchased a new stake in GeneDx in the 4th quarter valued at about $33,000. Finally, Bank Julius Baer & Co. Ltd Zurich purchased a new stake in GeneDx in the 4th quarter valued at about $35,000. Institutional investors own 61.72% of the company’s stock.

About GeneDx

GeneDx is a clinical diagnostics company specializing in comprehensive genetic and genomic testing for rare and inherited disorders. The company offers a broad portfolio of assays, including targeted gene panels, whole exome sequencing, whole genome sequencing and chromosomal microarray analysis. GeneDx’s laboratory services support the diagnosis of a wide range of conditions—from rare pediatric diseases and hereditary cancer syndromes to neuromuscular and metabolic disorders—by providing clinicians with detailed variant interpretation and reporting.

Founded in 2000 and based in Gaithersburg, Maryland, GeneDx was established with the aim of accelerating the translation of genomic discoveries into clinical care.