Veracyte Inc. (VCYT) looking to reclaim success with recent performance

Veracyte Inc. (NASDAQ: VCYT) stock fell -5.97% on Friday to $25.05 against a previous-day closing price of $26.64. With 1.11 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.1 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $28.18 whereas the lowest price it dropped to was $24.51. The 52-week range on VCYT shows that it touched its highest point at $54.13 and its lowest point at $14.85 during that stretch. It currently has a 1-year price target of $29.83. Beta for the stock currently stands at 1.10.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of VCYT was down-trending over the past week, with a drop of -4.46%, but this was up by 7.01% over a month. Three-month performance surged to 16.73% while six-month performance fell -19.81%. The stock lost -43.83% in the past year, while it has lost -39.20% so far this year. A look at the trailing 12-month EPS for VCYT yields -0.69 with Next year EPS estimates of -0.63. For the next quarter, that number is -0.22. This implies an EPS growth rate of -69.70% for this year and 27.60% for next year.

Float and Shares Shorts:

At present, 71.23 million VCYT shares are outstanding with a float of 70.78 million shares on hand for trading. On Jul 14, 2022, short shares totaled 3.91 million, which was 5.48% higher than short shares on Jun 14, 2022. In addition to Ms. Bonnie H. Anderson as the firm’s Co-Founder & Exec. Chairwoman, Mr. Marc A. Stapley serves as its CEO & Director.

Institutional Ownership:

Through their ownership of 106.00% of VCYT’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 71.56% of VCYT, in contrast to 36.33% held by mutual funds. Shares owned by individuals account for 17.32%. As the largest shareholder in VCYT with 12.40% of the stake, ARK Investment Management LLC holds 8,856,245 shares worth 8,856,245. A second-largest stockholder of VCYT, The Vanguard Group, Inc., holds 6,496,825 shares, controlling over 9.09% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in VCYT, holding 4,932,190 shares or 6.90% stake. With a 7.30% stake in VCYT, the ARK Innovation ETF is the largest stakeholder. A total of 5,218,580 shares are owned by the mutual fund manager. The SPDR S&P Biotech ETF, which owns about 5.27% of VCYT stock, is the second-largest Mutual Fund holder. It holds 3,762,273 shares valued at 74.87 million. Artisan Small Cap Fund holds 4.03% of the stake in VCYT, owning 2,875,692 shares worth 57.23 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for VCYT since 8 analysts follow the stock currently. There are 5 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 1 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With VCYT analysts setting a high price target of $35.00 and a low target of $23.00, the average target price over the next 12 months is $29.83. Based on these targets, VCYT could surge 39.72% to reach the target high and fall by -8.18% to reach the target low. Reaching the average price target will result in a growth of 19.08% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. VCYT will report FY 2022 earnings on 02/28/2023. Analysts have provided yearly estimates in a range of -$0.78 being high and -$1.00 being low. For VCYT, this leads to a yearly average estimate of -$0.89. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Veracyte Inc. surprised analysts by $0.09 when it reported -$0.13 EPS against a consensus estimate of -$0.22. The surprise factor in the prior quarter was $0.03. Based on analyst estimates, the high estimate for the next quarter is -$0.21 and the low estimate is -$0.27. The average estimate for the next quarter is thus -$0.24.

Summary of Insider Activity:

Insiders traded VCYT stock several times over the past three months with 8 Buys and 5 Sells. In these transactions, 163,386 shares were bought while 30,817 shares were sold. The number of buy transactions has increased to 24 while that of sell transactions has risen to 31 over the past year. The total number of shares bought during that period was 466,924 while 138,948 shares were sold.

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