Ryan Jason, Director at GeneDx Holdings Corp. (NASDAQ:WGS), recently sold a significant portion of his holdings in the company. According to a Form 4 SEC filing, Jason executed several transactions on November 19 and 20, 2024, selling a total of 47,000 shares of GeneDx's Class A common stock. The sales were made at prices ranging from $68.36 to $72.26 per share, amounting to approximately $3.3 million in total.
The transactions were conducted through the Jason Ryan Trust u/a dtd 11/25/2018, with the shares being disposed of indirectly. Following these sales, Jason's holdings in GeneDx were reduced to zero shares under this particular trust.
The filing also noted a prior transfer of 141,356 shares to the Jason Ryan 2024 GRAT, which was not included in a previous Form 4 filing. This transfer was made for no consideration, with Jason remaining the beneficial owner of the securities held by the grantor retained annuity trust.
In other recent news, genomic testing leader GeneDx has reported a substantial year-over-year revenue increase of 52% for Q3 2024, totaling $76 million. This marks the first instance of profitability for the company, a significant milestone in its financial performance. GeneDx's strategic growth in the pediatric outpatient market and advancements in genomic testing offerings were highlighted, with over 700,000 clinical exomes and genomes sequenced, capturing 80% of the U.S. exome market.
The company has also raised its full-year 2024 revenue guidance to a range of $284-$290 million. In a plan to integrate genomic testing into major health systems, GeneDx has partnered with Epic, set to launch in 2025. The company's total securities and restricted cash were reported at $117.4 million as of September 2024.
GeneDx expects continued growth in testing volumes and revenues, with plans to enhance its offerings in the NICU setting and increase genetic testing utilization among pediatric neurologists. Adjusted gross margin is expected at 62%, with net cash burn anticipated to be $60 million to $65 million, excluding financing costs. These are the recent developments that have shaped the company's trajectory.
InvestingPro Insights
The recent stock sales by GeneDx Holdings Corp. (NASDAQ:WGS) Director Ryan Jason come amid a period of significant volatility and impressive gains for the company's shares. According to InvestingPro data, GeneDx has seen a remarkable 5,011.35% price total return over the past year, with a particularly strong 260.53% return in the last six months alone. This volatility is reflected in one of the InvestingPro Tips, which notes that "stock price movements are quite volatile" for WGS.
Despite the strong stock performance, it's important to note that GeneDx is not currently profitable. An InvestingPro Tip indicates that "analysts do not anticipate the company will be profitable this year," which is consistent with the reported operating income of -$54.65 million for the last twelve months. However, the company has shown significant revenue growth, with a 44.22% increase in quarterly revenue as of Q3 2024.
The company's financial health appears mixed, with another InvestingPro Tip stating that "liquid assets exceed short term obligations," suggesting a solid short-term financial position. However, the company is trading at a high Price / Book multiple of 9.68, which could indicate that the stock is richly valued relative to its book value.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for GeneDx Holdings Corp., providing a deeper insight into the company's financial situation and market position.
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