Phillip G. Febbo, Chief Scientific and Medical (TASE:PMCN) Officer of Veracyte Inc . (NASDAQ:VCYT), recently sold shares of the company's common stock. According to a filing with the Securities and Exchange Commission, Febbo sold a total of 3,934 shares on December 4, 2024. The shares were sold at an average price of $44.0893, resulting in a total transaction value of approximately $173,447. The transaction comes as Veracyte, with a market capitalization of $3.41 billion, trades near its 52-week high of $44.50.
Following this transaction, Febbo retains ownership of 82,414 shares in the company. The sale was conducted under a Rule 10b5-1 trading plan, which was adopted by Febbo on September 4, 2024. This plan allows company insiders to set up a predetermined schedule for selling stocks, providing a way to avoid potential insider trading violations. According to InvestingPro, Veracyte has demonstrated remarkable momentum with a 100% price return over the past six months.
The sale prices for these transactions ranged from $43.60 to $44.46 per share, as noted in the filing. Further details regarding the number of shares sold at each price can be obtained upon request from the SEC, the issuer, or a shareholder. InvestingPro analysis shows Veracyte maintains a GREAT financial health score, with 16 additional ProTips available to subscribers, offering deeper insights into the company's performance and outlook.
In other recent news, Veracyte Inc. has reported a 29% year-over-year increase in Q3 2024 revenue, totaling $115.9 million, driven by robust performance in its testing business. This financial success has led the company to raise its total revenue guidance for 2024 to between $442 million and $445 million, indicating confidence in sustained growth and market expansion plans. Despite a potential $6 million revenue headwind due to the pause in the Envisia test, Veracyte remains optimistic about its future growth, with plans to expand Decipher into the metastatic prostate cancer market and launch a minimal residual disease (MRD) test for bladder cancer in 2026.
Goldman Sachs (NYSE:GS) recently adjusted its stance on Veracyte, downgrading the rating from Buy to Neutral and slightly decreasing the price target to $37. This decision was made in light of a possible deceleration in Afrima growth in 2025 due to high market penetration levels, despite Veracyte's strong performance and consistent top-line growth. The firm also highlighted several of Veracyte's pipeline projects, including MRD, expansion in European in vitro diagnostics, and the Percepta nasal swab, which are expected to make a substantial impact on the company's revenue streams in the coming years.
In contrast, Wolfe Research initiated coverage on Veracyte with an Outperform rating and a price target of $50.00, citing significant revenue growth and gross margin expansion since 2021. The firm anticipates high single-digit to low double-digit revenue growth and expects EBITDA margins to approach 30% over the next five years. These recent developments underscore Veracyte's continued growth trajectory and market expansion in the diagnostic testing industry.
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