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

GeneDx Holdings Corp. (NASDAQ:WGS)’s share price gapped up before the market opened 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 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.19) by $0.20. GeneDx had a positive return on equity of 9.15% and a negative net margin of 17.58%.The business had revenue of $114.44 million during the quarter, compared to analyst estimates of $111.01 million. During the same period in the previous year, the firm earned $0.36 EPS.

Key GeneDx News

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

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on WGS. TD Cowen reiterated a “buy” rating on shares of GeneDx in a report on Wednesday, July 15th. Weiss Ratings lowered shares of GeneDx from a “sell (d-)” rating to a “sell (e+)” rating in a report on Monday, June 1st. Canaccord Genuity Group boosted their price objective on shares of GeneDx from $75.00 to $90.00 and gave the company a “buy” rating in a research report on Tuesday. Piper Sandler reaffirmed an “overweight” rating and issued a $63.00 target price (up from $50.00) on shares of GeneDx in a research note on Tuesday, June 23rd. Finally, Craig Hallum reiterated a “buy” rating and set a $85.00 target price on shares of GeneDx in a report on Tuesday, May 5th. Seven equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, GeneDx has an average rating of “Moderate Buy” and an average target price of $89.57.

Insider Buying and Selling at GeneDx

In other GeneDx news, CEO Katherine Stueland sold 10,501 shares of GeneDx stock in a transaction on Tuesday, June 16th. The shares were sold at an average price of $60.77, for a total value of $638,145.77. Following the sale, the chief executive officer directly owned 104,372 shares in the company, valued at approximately $6,342,686.44. The trade was a 9.14% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Casdin Capital, Llc purchased 50,000 shares of the stock in a transaction on Friday, June 5th. The stock was acquired at an average price of $52.86 per share, for a total transaction of $2,643,000.00. Following the completion of the purchase, the director directly owned 3,707,164 shares in the company, valued at approximately $195,960,689.04. The trade was a 1.37% increase in their position. The SEC filing for this purchase provides additional information. In the last three months, insiders acquired 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 owned by corporate insiders.

Hedge Funds Weigh In On GeneDx

Several hedge funds have recently modified their holdings of WGS. Kestra Advisory Services LLC bought a new stake in GeneDx during the fourth quarter worth about $27,000. Fifth Third Bancorp bought a new position in GeneDx in the first quarter valued at approximately $31,000. Quarry LP grew its stake in GeneDx by 248.8% in the third quarter. Quarry LP now owns 293 shares of the company’s stock valued at $32,000 after purchasing an additional 209 shares in the last quarter. Ramirez Asset Management Inc. bought a new position in GeneDx in the fourth quarter valued at approximately $33,000. Finally, Greenline Wealth Management LLC acquired a new position in shares of GeneDx during the 4th quarter worth approximately $33,000. Institutional investors own 61.72% of the company’s stock.

GeneDx Price Performance

The stock 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 debt-to-equity ratio of 0.38, a quick ratio of 2.95 and a current ratio of 3.09. The company has a 50-day simple moving average of $61.08 and a two-hundred day simple 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.