GeneDx (NASDAQ:WGS) Downgraded by Zacks Research to “Strong Sell”

GeneDx (NASDAQ:WGS) was downgraded by stock analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a note issued to investors on Monday,Zacks.com reports.

A number of other equities analysts also recently weighed in on WGS. Weiss Ratings downgraded shares of GeneDx from a “sell (d-)” rating to a “sell (e+)” rating in a report on Monday, June 1st. Craig Hallum reiterated a “buy” rating and set a $85.00 target price on shares of GeneDx in a research note on Tuesday, May 5th. Canaccord Genuity Group set a $75.00 price target on GeneDx and gave the company a “buy” rating in a report on Tuesday, May 5th. Guggenheim restated a “buy” rating and set a $74.00 target price (up from $70.00) on shares of GeneDx in a research note on Monday. Finally, Wall Street Zen cut shares of GeneDx from a “hold” rating to a “sell” rating in a report on Saturday, May 9th. Six analysts have rated the stock with a Buy rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, GeneDx currently has a consensus rating of “Moderate Buy” and an average price target of $87.43.

GeneDx Trading Down 0.7%

GeneDx stock opened at $68.65 on Monday. The firm has a 50-day moving average of $54.39 and a 200-day moving average of $81.24. GeneDx has a one year low of $32.21 and a one year high of $170.87. The company has a debt-to-equity ratio of 0.38, a current ratio of 3.09 and a quick ratio of 2.95. The company has a market cap of $2.04 billion, a price-to-earnings ratio of -25.62 and a beta of 1.96.

GeneDx (NASDAQ:WGS) last released its 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). GeneDx had a negative net margin of 17.58% and a positive return on equity of 9.15%. The company had revenue of $102.25 million during the quarter, compared to analyst estimates of $112.46 million. During the same period in the prior year, the firm posted ($0.23) EPS. On average, equities analysts expect that GeneDx will post -1 earnings per share for the current fiscal year.

Insider Buying and Selling at GeneDx

In other GeneDx news, Director Keith A. Meister acquired 46,273 shares of the company’s stock in a transaction on Friday, May 15th. The stock was acquired at an average price of $38.91 per share, for a total transaction of $1,800,482.43. Following the purchase, the director directly owned 4,784,570 shares of the company’s stock, valued at $186,167,618.70. This trade represents a 0.98% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CFO Kevin Feeley sold 3,729 shares of the firm’s stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $60.77, for a total transaction of $226,611.33. Following the transaction, the chief financial officer directly owned 39,954 shares in the company, valued at $2,428,004.58. This represents a 8.54% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders have acquired 2,256,420 shares of company stock worth $93,144,340 and have sold 21,699 shares worth $1,295,646. 25.17% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On GeneDx

Several institutional investors and hedge funds have recently bought and sold shares of the company. ARK Investment Management LLC acquired a new position in GeneDx during the third quarter worth about $48,157,000. Sumitomo Mitsui Trust Group Inc. increased its holdings in shares of GeneDx by 30.6% during the fourth quarter. Sumitomo Mitsui Trust Group Inc. now owns 381,725 shares of the company’s stock worth $49,647,000 after buying an additional 89,470 shares in the last quarter. SG Americas Securities LLC boosted its holdings in shares of GeneDx by 937.3% during the 4th quarter. SG Americas Securities LLC now owns 63,181 shares of the company’s stock valued at $8,217,000 after acquiring an additional 57,090 shares in the last quarter. Assenagon Asset Management S.A. boosted its holdings in shares of GeneDx by 1,358.7% during the 4th quarter. Assenagon Asset Management S.A. now owns 205,895 shares of the company’s stock valued at $26,779,000 after acquiring an additional 191,780 shares in the last quarter. Finally, Goldman Sachs Group Inc. grew its position in GeneDx by 4.5% during the 4th quarter. Goldman Sachs Group Inc. now owns 1,220,502 shares of the company’s stock worth $158,738,000 after acquiring an additional 52,322 shares during the last quarter. Institutional investors own 61.72% of the company’s stock.

GeneDx News Roundup

Here are the key news stories impacting GeneDx this week:

• Positive Sentiment: No clearly positive company-specific catalysts were reported in the latest headlines.
• Neutral Sentiment: Several law firms, including Rosen, Pomerantz, Kessler Topaz, Robbins Geller, and others, reiterated the lead-plaintiff deadline in the class action against GeneDx. Article Title
• Neutral Sentiment: The lawsuit centers on alleged misstatements about the Fabric Genomics acquisition and its synergy potential, with firms arguing investors were misled about acquisition performance. Article Title
• Neutral Sentiment: Lawyers also pointed to the company’s Q1 2026 results and a reported $31.2 million impairment charge, which they say contributed to a sharp share-price drop and may be central to the case. Article Title
• Negative Sentiment: Ongoing class-action marketing and investigation headlines can weigh on sentiment by highlighting potential legal liability and uncertainty for GeneDx shareholders. Article Title

GeneDx Company Profile

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.