From Yahoo Finance: 2025-05-02 16:23:00

GeneDx Holdings exceeded analyst estimates in the first quarter, but investors were not satisfied. The stock plummeted by nearly 39% following the earnings release, leading to a round of price target cuts. Despite posting good revenue growth, the company’s performance did not meet high expectations, causing disappointment among investors.

The company reported a non-GAAP net income of almost $7.7 million, a significant improvement from the previous year’s loss. Both revenue and earnings surpassed consensus analyst estimates, but GeneDx has had more impressive beats in the past, leading to market disappointment.

Analysts, including BTIG’s Mark Massaro, lowered price targets on GeneDx stock. Massaro believes the company is fairly valued at $100 per share, considering its low valuation compared to revenue estimates. He maintains a buy recommendation despite the price target cut, emphasizing the company’s solid business fundamentals.

Despite the stock’s decline, some analysts believe investors overreacted to GeneDx’s quarterly results. The company is seen as a strong player in the biotech industry, and investors are urged not to bail on it if it falls short of inflated growth expectations. The Motley Fool Stock Advisor team did not include GeneDx in their list of the 10 best stocks for investors to buy now.

Read more: Why Investors Were Avoiding GeneDx Holdings Stock This Week