Zacks Investment Research Upgrades Genomic Health (NASDAQ:GHDX) to Buy

Zacks Investment Research upgraded shares of Genomic Health (NASDAQ:GHDX) from a hold rating to a buy rating in a research note released on Wednesday, Zacks.com reports. Zacks Investment Research currently has $77.00 price target on the medical research company’s stock.

According to Zacks, “Over the past year, Genomic Health has been outperforming its industry. The company is registering robust top-line growth banking on solid performance in the United States and internationally. In the last-reported quarter, breast cancer revenues were strong driven by increased Oncotype DX Breast Recurrence Score test usage globally which is amplifying on favorable results from the landmark TAILORx trial. Within the prostate cancer space, the company is seeing robust improvement in volume as the Oncotype DX GPS test consistently leads the market in low- and intermediate-risk prostate cancer test adoption. However, the company’s sole reliance on the Breast Oncotype DX test is a concern. Moreover, the company continues to face fierce competition for Oncotype DX tests.”

GHDX has been the topic of several other reports. BidaskClub upgraded Genomic Health from a hold rating to a buy rating in a research report on Saturday, July 27th. Piper Jaffray Companies cut Genomic Health from an overweight rating to a neutral rating in a research report on Monday, July 29th. Needham & Company LLC cut Genomic Health from a strong-buy rating to a hold rating in a research report on Tuesday. Deutsche Bank lowered their price target on Genomic Health from $80.00 to $55.00 and set a hold rating on the stock in a research report on Thursday, May 30th. Finally, JPMorgan Chase & Co. upgraded Genomic Health from an underweight rating to a neutral rating and lifted their price target for the company from $60.00 to $72.00 in a research report on Monday, July 29th. Eleven equities research analysts have rated the stock with a hold rating and three have given a buy rating to the company. The stock currently has a consensus rating of Hold and a consensus target price of $65.44.

Shares of GHDX stock traded down $0.46 during mid-day trading on Wednesday, hitting $72.53. 658,965 shares of the stock traded hands, compared to its average volume of 1,002,647. Genomic Health has a twelve month low of $50.77 and a twelve month high of $92.18. The stock has a market capitalization of $2.71 billion, a price-to-earnings ratio of 69.08 and a beta of 1.06. The stock’s 50-day simple moving average is $58.86. The company has a current ratio of 5.74, a quick ratio of 5.67 and a debt-to-equity ratio of 0.17.

Genomic Health (NASDAQ:GHDX) last issued its quarterly earnings results on Monday, July 29th. The medical research company reported $0.42 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.35 by $0.07. Genomic Health had a return on equity of 19.51% and a net margin of 11.69%. The company had revenue of $114.14 million for the quarter, compared to analysts’ expectations of $110.78 million. During the same period last year, the firm earned $0.23 EPS. The firm’s revenue for the quarter was up 19.4% on a year-over-year basis. Equities analysts forecast that Genomic Health will post 1.5 earnings per share for the current year.

In related news, insider Kim Mceachron sold 5,335 shares of Genomic Health stock in a transaction on Friday, July 5th. The stock was sold at an average price of $60.01, for a total value of $320,153.35. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, insider Steven Shak sold 50,000 shares of Genomic Health stock in a transaction on Wednesday, June 12th. The stock was sold at an average price of $51.38, for a total value of $2,569,000.00. The disclosure for this sale can be found here. Insiders sold a total of 152,025 shares of company stock worth $8,175,806 over the last 90 days. Insiders own 31.30% of the company’s stock.

Several hedge funds and other institutional investors have recently modified their holdings of the stock. LPL Financial LLC acquired a new stake in shares of Genomic Health in the fourth quarter worth $255,000. Advisor Group Inc. boosted its position in shares of Genomic Health by 34.9% in the fourth quarter. Advisor Group Inc. now owns 1,995 shares of the medical research company’s stock worth $129,000 after buying an additional 516 shares during the period. Dimensional Fund Advisors LP acquired a new stake in shares of Genomic Health in the fourth quarter worth $2,693,000. Geode Capital Management LLC boosted its position in shares of Genomic Health by 23.0% in the fourth quarter. Geode Capital Management LLC now owns 324,528 shares of the medical research company’s stock worth $20,902,000 after buying an additional 60,616 shares during the period. Finally, Principal Financial Group Inc. boosted its position in shares of Genomic Health by 120.5% in the fourth quarter. Principal Financial Group Inc. now owns 20,594 shares of the medical research company’s stock worth $1,326,000 after buying an additional 11,255 shares during the period. Institutional investors and hedge funds own 95.06% of the company’s stock.

Genomic Health Company Profile

Genomic Health, Inc, a healthcare company, provides clinically actionable genomic information to personalize cancer treatment decisions in the United States and internationally. The company develops and commercializes genomic-based clinical laboratory services that analyze the underlying biology of cancer, which allows physicians and patients to make individualized treatment decisions.

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