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In a series of transactions disclosed in a recent SEC filing, Derek J. Maetzold, President and CEO of Castle Biosciences Inc . (NASDAQ:CSTL), has sold shares worth approximately $585,673. The sales, executed on March 7 and March 10, 2025, involved multiple trades at prices ranging from $19.518 to $20.744 per share. The timing of these sales coincides with the stock’s recent 14.8% decline over the past week, according to InvestingPro data.
The transactions were part of a prearranged trading plan under Rule 10b5-1, which allows company insiders to set up a predetermined schedule for buying or selling shares. These trades included sales by trusts associated with Maetzold, such as the Maetzold Descendants 2020 Trust and the Derek Maetzold 2020 Irrevocable Trust, among others.
Following these transactions, Maetzold retains a significant stake in Castle Biosciences, with shares held directly and through various trusts. The company, based in Friendswood, Texas, specializes in medical laboratory services and maintains a strong financial position with a healthy current ratio of 7.29 and more cash than debt on its balance sheet. The company generated $332 million in revenue over the last twelve months, with an impressive gross margin of 82%.
In other recent news, Castle Biosciences Inc. reported a significant earnings beat for the fourth quarter of 2024, with an earnings per share (EPS) of $0.32, far surpassing the analyst forecast of $0.01. The company also exceeded revenue expectations, reporting $86.3 million in revenue compared to the anticipated $80.54 million. For the full year 2024, Castle Biosciences achieved a 51% increase in revenue, totaling $332.1 million, and reversed a net loss from the previous year with a net income of $18.2 million. Looking ahead, the company projects 2025 revenue between $280 million and $295 million. Despite the strong financial performance, Castle Biosciences faces potential challenges, including the anticipated loss of Medicare reimbursement for its DecisionDx SCC test starting in April 2025. This development is expected to impact the company’s revenue and gross margins. Additionally, Castle Biosciences continues to explore strategic mergers and acquisitions to drive future growth, as noted in the earnings call. Analyst feedback from firms such as Guggenheim and Scotiabank (TSX:BNS) focused on the company’s strategies to address these challenges and its ongoing clinical validation efforts.
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