GeneDx (NASDAQ:WGS) Shares Gap Down – Here’s Why

GeneDx Holdings Corp. (NASDAQ:WGS)’s stock price gapped down prior to trading on Tuesday. The stock had previously closed at $65.72, but opened at $56.25. GeneDx shares last traded at $54.3910, with a volume of 608,952 shares trading hands.

Recent GeneDx Headlines

Here are a few of the latest headlines about WGS:

• Negative Sentiment: Third-quarter exome and genome results rose 25%, below the company’s previously stated growth expectation of at least 29.2%. GeneDx lowered its 2026 growth target to at least 28%, raising concerns about testing-volume momentum. Article on GeneDx’s testing growth
• Negative Sentiment: The fourth-quarter outlook reportedly missed consensus, adding to concerns about near-term growth. Full-year revenue guidance of $475 million–$490 million spans the $481.1 million analyst estimate, but the range does not signal a clear upside revision. Q4 outlook article
• Negative Sentiment: Investors bought 6,604 put options, 255% above typical daily volume, indicating increased hedging or bearish positioning after the earnings news. Options activity is not necessarily a directional forecast. Unusual options activity

Analyst Ratings Changes

Several research analysts have recently commented on WGS shares. Guggenheim lifted their target price on GeneDx from $74.00 to $83.00 and gave the stock a “buy” rating in a research note on Thursday, October 1st. Wall Street Zen upgraded GeneDx from a “sell” rating to a “hold” rating in a research note on Saturday, August 8th. BTIG Research reaffirmed a “buy” rating and set a $85.00 price target (down from $90.00) on shares of GeneDx in a report on Tuesday. Weiss Ratings reaffirmed a “sell (d)” rating on shares of GeneDx in a research report on Monday, November 2nd. Finally, TD Cowen reiterated a “buy” rating on shares of GeneDx in a report on Wednesday, July 15th. Seven equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $90.14.

GeneDx Price Performance

The company’s 50-day simple moving average is $75.23 and its 200-day simple moving average is $70.68. The company has a debt-to-equity ratio of 0.60, a current ratio of 4.16 and a quick ratio of 3.06. The stock has a market capitalization of $1.64 billion, a price-to-earnings ratio of -14.58 and a beta of 2.00.

GeneDx (NASDAQ:WGS) last posted its earnings results on Monday, November 9th. The company reported $0.28 EPS for the quarter, beating the consensus estimate of $0.07 by $0.21. The company had revenue of $123.10 million for the quarter, compared to the consensus estimate of $122.93 million. GeneDx had a positive return on equity of 1.98% and a negative net margin of 24.10%. During the same quarter in the prior year, the business earned ($0.27) earnings per share. Research analysts forecast that GeneDx Holdings Corp. will post -0.41 earnings per share for the current fiscal year.

Insider Buying and Selling at GeneDx

In related news, CEO Katherine Stueland sold 10,501 shares of the company’s stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $97.61, for a total value of $1,025,002.61. Following the transaction, the chief executive officer directly owned 115,476 shares in the company, valued at approximately $11,271,612.36. This represents a 8.34% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Kevin Feeley sold 3,728 shares of GeneDx stock in a transaction dated Wednesday, September 16th. The stock was sold at an average price of $97.61, for a total transaction of $363,890.08. Following the completion of the sale, the chief financial officer owned 44,945 shares of the company’s stock, valued at $4,387,081.45. This trade represents a 7.66% decrease in their position. 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. Insiders have sold a total of 19,206 shares of company stock worth $1,808,056 in the last quarter. Company insiders own 25.17% of the company’s stock.

Institutional Trading of GeneDx

Institutional investors have recently bought and sold shares of the business. William Blair Investment Management LLC increased its holdings in shares of GeneDx by 11.4% during the third quarter. William Blair Investment Management LLC now owns 1,560,247 shares of the company’s stock worth $112,806,000 after purchasing an additional 159,594 shares during the period. First Light Asset Management LLC boosted its stake in shares of GeneDx by 222.7% in the second quarter. First Light Asset Management LLC now owns 783,923 shares of the company’s stock valued at $53,816,000 after buying an additional 540,996 shares during the period. Assenagon Asset Management S.A. boosted its stake in shares of GeneDx by 108.4% in the third quarter. Assenagon Asset Management S.A. now owns 632,413 shares of the company’s stock valued at $45,723,000 after buying an additional 328,980 shares during the period. Amova Asset Management Americas Inc. grew its position in GeneDx by 67.3% during the first quarter. Amova Asset Management Americas Inc. now owns 638,800 shares of the company’s stock worth $41,024,000 after buying an additional 257,075 shares in the last quarter. Finally, Wellington Management Group LLP grew its position in GeneDx by 2.0% during the second quarter. Wellington Management Group LLP now owns 347,927 shares of the company’s stock worth $23,885,000 after buying an additional 6,922 shares in the last quarter. Institutional investors own 61.72% of the company’s stock.

About GeneDx

GeneDx is a genomic testing company focused on helping clinicians diagnose rare and inherited conditions. Its services include whole exome and whole genome sequencing, along with other genetic tests and clinical interpretation of results. The company’s testing is used by healthcare providers to support diagnosis and care decisions, particularly for patients with suspected rare genetic disorders. GeneDx also offers testing related to hereditary cancer risk. Founded in 2000 by researchers with experience at the National Institutes of Health, GeneDx has developed its business around applying genomic information in clinical care.