What Made Canaccord Genuity Downgrade Genomic Health’s Stock?

By Jason Carr

Genomic Health (GHDXResearch Report) received a Hold rating and a $72 price target from Canaccord Genuity analyst Mark Massaro yesterday. The company’s shares closed yesterday at $73.07.

Massaro wrote:

“We are also lowering our price target from $77 to the deal price of $72. Our prior $77 PT used a 6.7x multiple on our 2021 revenue estimate of $540M. We note that our peer group (as of today) is trading at 6.7x our 2020 revenue estimates.”

According to TipRanks.com, Massaro is a top 100 analyst with an average return of 21.4% and a 64.3% success rate. Massaro covers the Healthcare sector, focusing on stocks such as HTG Molecular Diagnostics, Meridian Bioscience Inc, and Quanterix Corporation.

Genomic Health has an analyst consensus of Hold, with a price target consensus of $71.25, representing a -2.5% downside. In a report released yesterday, J.P. Morgan also upgraded the stock to Hold with a $72 price target.

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Based on Genomic Health’s latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $13 million. In comparison, last year the company had a net profit of $8.32 million.

Based on the recent corporate insider activity of 161 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of GHDX in relation to earlier this year.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Genomic Health, Inc. engages in the provision of genomic-based diagnostic tests. Its tests analyze the underlying biology of cancers, allowing physicians and patients to make individualized treatment decisions. The firm uses a platform which translates a massive amount of clinical and genomic data into clinically actionable results for treatment planning.