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

Veracyte, Inc. (NASDAQ:VCYT) saw an uptick in 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.

Key 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

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on VCYT shares. Leerink Partners lowered shares of Veracyte from an “outperform” rating to a “market perform” rating and reduced their price objective for the stock from $55.00 to $35.00 in a research report on Thursday. Weiss Ratings lowered Veracyte from a “hold (c+)” rating to a “hold (c)” rating in a research report on Thursday, September 24th. Stephens cut their target price on Veracyte from $68.00 to $55.00 and set an “overweight” rating on the stock in a research note on Tuesday, August 4th. Morgan Stanley reduced their price target on Veracyte from $47.00 to $44.00 and set an “underweight” rating on the stock in a report on Tuesday, August 4th. Finally, UBS Group raised their price target on Veracyte from $52.00 to $65.00 and gave the stock a “buy” rating in a research note on Wednesday, September 9th. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $51.40.

Veracyte Trading Up 0.4%

The company has a market capitalization of $1.94 billion, a PE ratio of 15.65 and a beta of 1.98. The firm’s 50-day simple moving average is $44.49 and its 200-day simple moving average is $42.95.

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

Insider Buying and Selling at Veracyte

In other news, CFO Rebecca Chambers sold 3,652 shares of the stock in a transaction on Friday, September 4th. The stock was sold at an average price of $43.10, for a total transaction of $157,401.20. Following the transaction, the chief financial officer owned 166,025 shares of the company’s stock, valued at approximately $7,155,677.50. This represents a 2.15% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, 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 value of $742,500.00. Following the transaction, the director owned 10,247 shares in the company, valued at approximately $512,350. This represents a 59.17% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 62,609 shares of company stock worth $2,858,904. Insiders own 1.60% of the company’s stock.

Institutional Investors Weigh In On Veracyte

Several large investors have recently modified their holdings of the business. Eurizon Capital SGR S.p.A. acquired a new stake in Veracyte in the third quarter worth about $34,000. Fifth Third Bancorp grew its stake in shares of Veracyte by 7.5% during the third quarter. Fifth Third Bancorp now owns 55,232 shares of the biotechnology company’s stock worth $2,543,000 after acquiring an additional 3,831 shares during the last quarter. Maryland State Retirement & Pension System increased its holdings in shares of Veracyte by 54.8% during the third quarter. Maryland State Retirement & Pension System now owns 17,964 shares of the biotechnology company’s stock valued at $827,000 after acquiring an additional 6,359 shares in the last quarter. Allspring Global Investments Holdings LLC increased its holdings in shares of Veracyte by 7.2% during the third quarter. Allspring Global Investments Holdings LLC now owns 16,795 shares of the biotechnology company’s stock valued at $742,000 after acquiring an additional 1,121 shares in the last quarter. Finally, Candriam S.C.A. increased its holdings in shares of Veracyte by 38.1% during the third quarter. Candriam S.C.A. now owns 186,387 shares of the biotechnology company’s stock valued at $8,613,000 after acquiring an additional 51,392 shares in the last quarter.

About Veracyte

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.