SOPHiA GENETICS (NASDAQ:SOPH) Shares Gap Down on Disappointing Earnings

SOPHiA GENETICS SA (NASDAQ:SOPH)’s stock price gapped down prior to trading on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $7.11, but opened at $6.50. SOPHiA GENETICS shares last traded at $6.2130, with a volume of 114,598 shares.

The company reported ($0.24) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.20) by ($0.04). The firm had revenue of $24.27 million during the quarter, compared to analysts’ expectations of $24.03 million. SOPHiA GENETICS had a negative return on equity of 132.47% and a negative net margin of 93.86%.

Analysts Set New Price Targets

Several equities research analysts have commented on the stock. Zacks Research raised shares of SOPHiA GENETICS to a “hold” rating in a report on Tuesday, July 21st. HC Wainwright reiterated a “buy” rating and issued a $14.00 target price on shares of SOPHiA GENETICS in a research note on Monday, October 12th. Weiss Ratings reissued a “sell (d-)” rating on shares of SOPHiA GENETICS in a research report on Thursday, October 15th. Finally, BTIG Research upped their price target on shares of SOPHiA GENETICS from $8.00 to $9.00 and gave the company a “buy” rating in a research note on Wednesday, August 5th. Three research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average target price of $10.00.

Insider Buying and Selling

In related news, insider Philippe Menu sold 7,394 shares of the business’s stock in a transaction on Monday, October 5th. The stock was sold at an average price of $8.13, for a total transaction of $60,113.22. Following the sale, the insider directly owned 200,993 shares in the company, valued at approximately $1,634,073.09. The trade was a 3.55% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Chairman Jurgi Camblong sold 40,172 shares of the stock in a transaction dated Monday, October 5th. The stock was sold at an average price of $8.13, for a total value of $326,598.36. Following the sale, the chairman directly owned 3,395,650 shares in the company, valued at $27,606,634.50. This trade represents a 1.17% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 215,662 shares of company stock valued at $1,700,149 over the last three months. Insiders own 4.88% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. AWM Investment Company Inc. bought a new position in shares of SOPHiA GENETICS in the second quarter valued at approximately $9,809,000. Principal Financial Group Inc. increased its holdings in SOPHiA GENETICS by 0.7% during the 1st quarter. Principal Financial Group Inc. now owns 1,409,242 shares of the company’s stock worth $6,976,000 after acquiring an additional 9,800 shares during the period. Hodges Capital Management Inc. bought a new stake in SOPHiA GENETICS during the 1st quarter worth approximately $2,157,000. Sei Investments Co. purchased a new stake in SOPHiA GENETICS in the 1st quarter worth approximately $1,772,000. Finally, Sowell Financial Services LLC purchased a new stake in SOPHiA GENETICS in the 3rd quarter worth approximately $2,865,000. Hedge funds and other institutional investors own 31.59% of the company’s stock.

SOPHiA GENETICS Stock Down 10.8%

The company’s 50 day simple moving average is $7.84 and its 200-day simple moving average is $5.96. The company has a debt-to-equity ratio of 0.58, a quick ratio of 2.55 and a current ratio of 2.69. The firm has a market capitalization of $531.81 million, a PE ratio of -5.40 and a beta of 0.95.

About SOPHiA GENETICS

SOPHiA GENETICS SA is a healthcare technology company that develops data-driven solutions for genomic medicine. Its cloud-based platform uses artificial intelligence, machine learning and advanced analytics to help healthcare organizations analyze and interpret complex biological and clinical data.

The company’s primary offering, the SOPHiA DDM platform, supports next-generation sequencing workflows, including data management, quality control, genomic analysis, variant interpretation and reporting.