GeneDx (NASDAQ:WGS) Shares Gap Up on Better-Than-Expected Earnings

GeneDx Holdings Corp. (NASDAQ:WGS) gapped up prior to trading on Tuesday following a stronger than expected earnings report. The stock had previously closed at $67.86, but opened at $76.00. GeneDx shares last traded at $65.5170, with a volume of 653,148 shares.

The company reported $0.01 EPS for the quarter, beating the consensus estimate of ($0.19) by $0.20. The company had revenue of $114.44 million for the quarter, compared to the consensus estimate of $111.01 million. GeneDx had a negative net margin of 17.58% and a positive return on equity of 9.15%. During the same quarter in the previous year, the company earned $0.36 EPS.

Key Headlines Impacting GeneDx

Here are the key news stories impacting GeneDx this week:

• Positive Sentiment: GeneDx reported second-quarter revenue of $114.4 million, up 11.4% year over year and ahead of analyst expectations. Adjusted EPS was $0.01, compared with consensus estimates for a $0.19 loss. GeneDx Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Management reaffirmed 2026 revenue guidance of $475 million to $490 million, broadly in line with the $477.1 million consensus estimate, and expects a meaningful collection-rate improvement beginning in the fourth quarter. GeneDx Reaffirms 2026 Revenue Guidance
• Positive Sentiment: Canaccord Genuity raised its price target from $75 to $90 and initiated or maintained a Buy rating. BTIG also reaffirmed its Buy rating with a $90 target, implying substantial upside from recent trading levels. Canaccord Raises GeneDx Price Target
• Neutral Sentiment: Despite the adjusted-EPS beat, GeneDx remained unprofitable on a GAAP basis, reporting a $17.7 million net loss, a $17.5 million operating loss and $29 million of operating cash outflow. Cash stood at $60.3 million at quarter-end. GeneDx Q2 Financial Results
• Negative Sentiment: Multiple law firms publicized a securities class-action lawsuit alleging investor harm and federal securities-law violations related to purchases made between April 16, 2025, and May 4, 2026. The allegations have not been proven, but the litigation adds legal and reputational risk. GeneDx Securities Class Action

Analysts Set New Price Targets

Several research analysts have recently commented on the company. Guggenheim reissued a “buy” rating and issued a $74.00 target price (up from $70.00) on shares of GeneDx in a report on Monday, June 29th. Weiss Ratings cut GeneDx from a “sell (d-)” rating to a “sell (e+)” rating in a report on Monday, June 1st. Craig Hallum reaffirmed a “buy” rating and issued a $85.00 price target on shares of GeneDx in a report on Tuesday, May 5th. BTIG Research reiterated a “buy” rating and set a $90.00 price target on shares of GeneDx in a research report on Tuesday. Finally, Piper Sandler restated an “overweight” rating and issued a $63.00 price objective (up from $50.00) on shares of GeneDx in a research report on Tuesday, June 23rd. Seven investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, GeneDx has an average rating of “Moderate Buy” and a consensus target price of $89.57.

Insider Activity

In other GeneDx news, Director Casdin Capital, Llc purchased 185,000 shares of the stock in a transaction dated Tuesday, May 19th. The stock was bought at an average price of $42.60 per share, for a total transaction of $7,881,000.00. Following the transaction, the director directly owned 3,367,164 shares in the company, valued at $143,441,186.40. This represents a 5.81% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Keith A. Meister acquired 533,758 shares of GeneDx stock in a transaction on Thursday, May 7th. The stock was acquired at an average cost of $37.86 per share, for a total transaction of $20,208,077.88. Following the completion of the purchase, the director owned 3,761,908 shares of the company’s stock, valued at approximately $142,425,836.88. The trade was a 16.53% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. In the last ninety days, insiders bought 2,256,420 shares of company stock worth $93,144,340 and sold 19,135 shares worth $1,128,499. 25.17% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On GeneDx

Several hedge funds have recently added to or reduced their stakes in WGS. Handelsbanken Fonder AB grew its position in shares of GeneDx by 17.0% during the 2nd quarter. Handelsbanken Fonder AB now owns 6,200 shares of the company’s stock worth $426,000 after buying an additional 900 shares during the period. Assenagon Asset Management S.A. grew its holdings in GeneDx by 219.0% during the second quarter. Assenagon Asset Management S.A. now owns 303,433 shares of the company’s stock valued at $20,831,000 after purchasing an additional 208,305 shares during the period. Bank of America Corp DE raised its holdings in GeneDx by 77.5% in the first quarter. Bank of America Corp DE now owns 234,606 shares of the company’s stock worth $15,066,000 after purchasing an additional 102,456 shares during the period. California State Teachers Retirement System boosted its position in shares of GeneDx by 31.2% during the first quarter. California State Teachers Retirement System now owns 25,045 shares of the company’s stock worth $1,608,000 after purchasing an additional 5,951 shares in the last quarter. Finally, Ashford Capital Management Inc. grew its holdings in shares of GeneDx by 31.9% in the 1st quarter. Ashford Capital Management Inc. now owns 174,512 shares of the company’s stock valued at $11,207,000 after buying an additional 42,186 shares during the period. Institutional investors and hedge funds own 61.72% of the company’s stock.

GeneDx Price Performance

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 firm has a market cap of $1.93 billion, a price-to-earnings ratio of -24.37 and a beta of 1.92. The company has a 50 day moving average of $61.08 and a 200 day moving average of $69.30.

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.