Genomic Health Inc. (GHDX) Rating Increased to Buy at Zacks Investment Research
Genomic Health Inc. (NASDAQ:GHDX) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Tuesday. The brokerage currently has a $33.00 price target on the stock. Zacks Investment Research’s target price would indicate a potential upside of 10.63% from the stock’s previous close.
According to Zacks, “Genomic Health continues to experience strong test volume as well as revenue growth, across its global region. However, in the last reported second quarter 2016, gross margin continued to be weak as the company has been witnessing for the past few quarters. Additionally, fluctuations in the price of the marketable security continued to hamper the stock, which is expected to remain for the rest of 2016. Nevertheless, we are optimistic about the fact that despite a huge rise in cost of sales, the gross margin decline was comparatively moderate, on the back of a higher pace of revenue growth.”
Other analysts also recently issued research reports about the stock. Bank of America Corp. set a $28.00 target price on shares of Genomic Health and gave the stock a “sell” rating in a research report on Wednesday, August 3rd. Jefferies Group increased their target price on shares of Genomic Health from $25.00 to $27.00 and gave the stock a “hold” rating in a research report on Wednesday, August 17th. Canaccord Genuity reissued a “buy” rating and set a $38.00 target price on shares of Genomic Health in a research report on Friday, August 5th. Finally, Leerink Swann reissued a “buy” rating on shares of Genomic Health in a research report on Tuesday, June 21st. Two analysts have rated the stock with a sell rating, two have given a hold rating and six have issued a buy rating to the company. Genomic Health presently has an average rating of “Hold” and an average price target of $32.50.
Genomic Health (NASDAQ:GHDX) opened at 29.83 on Tuesday. The stock’s market cap is $994.71 million. The company has a 50-day moving average of $27.75 and a 200-day moving average of $27.06. Genomic Health has a 52 week low of $20.05 and a 52 week high of $35.79.
Genomic Health (NASDAQ:GHDX) last posted its quarterly earnings data on Tuesday, August 2nd. The company reported ($0.18) EPS for the quarter, meeting the Zacks’ consensus estimate of ($0.18). Genomic Health had a negative net margin of 8.84% and a negative return on equity of 21.02%. The company earned $81.97 million during the quarter, compared to the consensus estimate of $81.27 million. During the same quarter in the prior year, the company posted ($0.29) EPS. The company’s quarterly revenue was up 16.1% compared to the same quarter last year. On average, analysts predict that Genomic Health will post ($0.47) EPS for the current fiscal year.
In related news, insider James J. Vaughn sold 3,000 shares of the firm’s stock in a transaction on Monday, August 8th. The stock was sold at an average price of $28.74, for a total transaction of $86,220.00. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, COO G Bradley Cole sold 5,000 shares of the firm’s stock in a transaction on Thursday, August 11th. The stock was sold at an average price of $28.87, for a total value of $144,350.00. Following the transaction, the chief operating officer now owns 40,426 shares in the company, valued at $1,167,098.62. The disclosure for this sale can be found here. Insiders own 47.00% of the company’s stock.
Institutional investors have recently made changes to their positions in the company. Bank of Montreal Can bought a new stake in Genomic Health during the second quarter worth about $187,000. Royal Bank of Canada boosted its stake in Genomic Health by 6,543.0% in the first quarter. Royal Bank of Canada now owns 8,503 shares of the company’s stock worth $210,000 after buying an additional 8,375 shares during the last quarter. AQR Capital Management LLC bought a new stake in Genomic Health during the second quarter worth about $270,000. American International Group Inc. boosted its stake in Genomic Health by 3.2% in the second quarter. American International Group Inc. now owns 10,753 shares of the company’s stock worth $278,000 after buying an additional 334 shares during the last quarter. Finally, Nationwide Fund Advisors boosted its stake in Genomic Health by 3.0% in the second quarter. Nationwide Fund Advisors now owns 11,932 shares of the company’s stock worth $309,000 after buying an additional 351 shares during the last quarter. Hedge funds and other institutional investors own 88.92% of the company’s stock.
Genomic Health Company Profile
Genomic Health, Inc is a healthcare company, which provides genomic-based diagnostic tests for the treatment of early stage cancer. The Company offers its Oncotype DX tests as a clinical laboratory service, where it analyzes the expression levels of genes in tumor tissue samples and provides physicians with a quantitative gene expression profile expressed as a single quantitative score, which it calls a Recurrence Score for invasive breast cancer and colon cancer, a DCIS Score for ductal carcinoma in situ (DCIS) and a Genomic Prostate Score for prostate cancer.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Genomic Health Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Genomic Health Inc. and related companies with MarketBeat.com's FREE daily email newsletter.