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Frank Stokes, the Chief Financial Officer of Castle Biosciences Inc . (NASDAQ:CSTL), a company currently valued at $710 million and showing strong financial health according to InvestingPro metrics, recently sold a portion of his holdings in the company. According to a Form 4 filing with the Securities and Exchange Commission, Stokes sold 8,046 shares of Castle Biosciences’ common stock on February 20, 2025. The shares were sold at a weighted-average price of $26.70, with transaction prices ranging between $26.47 and $27.10. The transaction comes as the company maintains a strong balance sheet with a current ratio of 7.78 and is trading near its Fair Value, based on InvestingPro analysis.
This transaction was executed under a Rule 10b5-1 plan, which Stokes adopted in November 2024. Following the sale, Stokes retains 35,319 shares of Castle Biosciences, which is based in Friendswood, Texas. Investors should note that the company is scheduled to report earnings on February 27, 2025, with InvestingPro data showing impressive revenue growth of 62% in the last twelve months.
In other recent news, Castle Biosciences reported that it expects to meet or exceed the top end of its full-year 2024 revenue guidance, despite concerns arising from a finalized Local Coverage Determination by Novitas, which removes DecisionDx-SCC as a covered test. The company delivered 96,071 total test reports in 2024, reflecting a 36% increase from the previous year, though slightly below analyst expectations of 97,350. Notably, TissueCypher Barrett’s Esophagus test reports surged by 94% in the fourth quarter. Castle Biosciences also received approval from the New York State Department of Health for its TissueCypher Barrett’s Esophagus test, a development expected to enhance patient care for those with Barrett’s esophagus. Meanwhile, Leerink Partners reported that preliminary fourth-quarter results for the DecisionDx-Melanoma test were below expectations, contributing to a significant drop in the company’s share price. Additionally, Novitas’ decision not to cover the DecisionDx-SCC test was confirmed, impacting the company’s financial outlook, although analysts noted this outcome was anticipated. Despite these challenges, Castle Biosciences maintains strong cash reserves and is actively planning the launch of a developmental test for atopic dermatitis by the end of 2025. The company has enrolled over 1,100 patients in a validation study for this test, which aims to improve treatment selection for patients with moderate-to-severe atopic dermatitis.
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