Castle Biosciences, Inc. (NASDAQ:CSTL) Receives $42.43 Average Price Target from Brokerages

Castle Biosciences, Inc. (NASDAQ:CSTL) has been given a consensus rating of “Moderate Buy” by the ten research firms that are currently covering the firm, Marketbeat Ratings reports. One investment analyst has rated the stock with a sell rating, one has issued a hold rating, seven have given a buy rating and one has assigned a strong buy rating to the company. The average 1 year target price among brokerages that have updated their coverage on the stock in the last year is $41.4286.

CSTL has been the topic of several recent research reports. Zacks Research downgraded shares of Castle Biosciences from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, May 26th. Roth Capital initiated coverage on shares of Castle Biosciences in a research report on Wednesday, June 24th. They set a “buy” rating and a $40.00 price objective for the company. BTIG Research reduced their price objective on Castle Biosciences from $50.00 to $40.00 and set a “buy” rating for the company in a research note on Wednesday, May 13th. Weiss Ratings raised Castle Biosciences from a “sell (e+)” rating to a “sell (d-)” rating in a report on Friday. Finally, Canaccord Genuity Group decreased their target price on Castle Biosciences from $50.00 to $40.00 and set a “buy” rating on the stock in a report on Monday, April 20th.

More Castle Biosciences News

Here are the key news stories impacting Castle Biosciences this week:

• Positive Sentiment: Revenue significantly exceeded expectations: Second-quarter revenue was approximately $103.5 million, up 20.1% year over year and above analyst estimates near $86 million-$88 million. Gross profit increased 16.5% to $79.8 million. Castle Biosciences Reports Second Quarter 2026 Results
• Positive Sentiment: Loss was narrower than expected: Adjusted loss was $0.07 per share, compared with the consensus estimate of a $0.41-$0.44 loss. The operating loss narrowed to $3.1 million, supporting the view that improving scale may help profitability over time. Castle Biosciences Reports Q2 Loss, Tops Revenue Estimates
• Positive Sentiment: Full-year outlook was raised: Castle now expects 2026 revenue of $365 million to $375 million, above the approximately $353.2 million analyst consensus. The higher outlook strengthens the growth narrative and likely provided the main catalyst for the stock’s advance. Castle Biosciences Lifts 2026 Outlook After Q2 Growth
• Neutral Sentiment: Liquidity remains solid: The company generated $15.2 million in operating cash flow and ended the quarter with $62.1 million in cash, while maintaining relatively low leverage. However, capital spending was $8.7 million and net profitability has not yet been achieved. Castle Biosciences Q2 2026 Earnings Call Transcript
• Negative Sentiment: Insider selling remains a risk signal: Chief Executive Officer Derek Maetzold and other executives have reported stock sales, with the transactions conducted under pre-arranged Rule 10b5-1 plans. While these sales do not necessarily indicate deteriorating business conditions, the absence of reported insider purchases may temper investor enthusiasm.

Insider Activity

In other news, COO Kristen M. Oelschlager sold 8,586 shares of Castle Biosciences stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $24.42, for a total transaction of $209,670.12. Following the transaction, the chief operating officer directly owned 21,874 shares of the company’s stock, valued at $534,163.08. The trade was a 28.19% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Derek J. Maetzold sold 3,622 shares of the business’s stock in a transaction that occurred on Monday, July 27th. The shares were sold at an average price of $24.16, for a total value of $87,507.52. Following the transaction, the insider owned 11,812 shares of the company’s stock, valued at approximately $285,377.92. This trade represents a 23.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 55,025 shares of company stock valued at $1,252,199 in the last three months. 6.10% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Castle Biosciences

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. RTW Investments LP bought a new position in shares of Castle Biosciences in the fourth quarter worth about $82,283,000. Summit Partners Public Asset Management LLC raised its stake in Castle Biosciences by 164.7% during the 4th quarter. Summit Partners Public Asset Management LLC now owns 1,058,725 shares of the company’s stock valued at $41,184,000 after purchasing an additional 658,725 shares during the period. Eventide Asset Management LLC bought a new stake in Castle Biosciences during the 4th quarter valued at approximately $11,864,000. SG Americas Securities LLC lifted its holdings in Castle Biosciences by 1,051.8% in the 1st quarter. SG Americas Securities LLC now owns 244,886 shares of the company’s stock worth $6,012,000 after purchasing an additional 223,624 shares in the last quarter. Finally, Wellington Management Group LLP purchased a new position in Castle Biosciences in the 4th quarter worth approximately $8,502,000. Institutional investors own 92.60% of the company’s stock.

Castle Biosciences Price Performance

Shares of NASDAQ:CSTL opened at $28.00 on Friday. The firm’s 50 day moving average price is $22.76 and its 200-day moving average price is $26.52. Castle Biosciences has a twelve month low of $14.59 and a twelve month high of $44.28. The company has a quick ratio of 6.53, a current ratio of 6.75 and a debt-to-equity ratio of 0.02. The stock has a market capitalization of $849.24 million, a PE ratio of -42.42 and a beta of 1.00.

Castle Biosciences (NASDAQ:CSTL) last posted its quarterly earnings data on Thursday, July 30th. The company reported ($0.07) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.41) by $0.34. The company had revenue of $99.86 million for the quarter, compared to the consensus estimate of $86.23 million. Castle Biosciences had a negative net margin of 5.43% and a negative return on equity of 4.16%. Equities research analysts expect that Castle Biosciences will post -1.56 EPS for the current year.

About Castle Biosciences

Castle Biosciences, Inc is a molecular diagnostics company specializing in the development and commercialization of prognostic and diagnostic tests for patients with dermatologic conditions. The company’s proprietary portfolio of genomic assays is designed to improve risk assessment and guide clinical decision-making for individuals with skin cancers and other skin-related diseases. By combining genomic data with advanced statistical algorithms, Castle Biosciences seeks to provide actionable insights that help physicians tailor treatment plans and monitoring strategies.

The company’s flagship test, DecisionDx-Melanoma, evaluates the probability of metastasis in patients diagnosed with cutaneous melanoma, supporting more personalized surveillance and therapeutic approaches.