Why Is GENEDX HLDGS CORP A (WGS) Stock Down Today?

GeneDx Holdings Corp (WGS) shares fell 19.25% to $53.07 on Tuesday. The sharp decline followed the release of third-quarter 2026 results, where the company issued a fourth-quarter revenue outlook that fell short of Street forecasts.

What Happened

GeneDx reported third-quarter revenue of $123.1 million, a figure that aligned with expectations but represented only a 5% year-over-year increase. While adjusted net income turned positive, the primary driver of the sell-off was the company’s guidance for the final quarter. Management outlined fourth-quarter revenue of at least $135 million, a projection that missed consensus estimates. Despite the near-term miss, the company reaffirmed its full-year fiscal 2026 revenue guidance of $475 million to $490 million and raised its adjusted net income guidance to at least $12 million.

BTIG maintained its Buy rating on the stock but lowered its price target to $85. The earnings call highlighted that documentation rules and Medicaid expansion are reshaping patient volumes and margins. Additionally, GeneDx presented new research at the National Society of Genetic Counselors Conference, noting that 62% of patients with pathogenic findings had results associated with opportunities to inform medical management.

What The Data Shows

The stock opened at $58.60, a 10.8% gap down from the prior close of $65.72. Intraday trading saw the session low reach $52.89 at 9:30 AM ET, with volume totaling 1.3 million shares, which is 1.7 times the three-month daily average. Over the last eight sessions, the stock had already declined 7.5%. The 52-week range spans from $32.21 to $170.87, and the stock printed four fresh 52-week highs and two fresh 52-week lows on November 10.

Unusual options activity over the last 36 hours included two notable prints, with put premium reaching $8.4 million compared to $0 in call premium. The largest single print was $5.2 million. Insider activity remains notable, with four sales totaling $1.8 million in the last 90 days, including transactions by CEO Katherine Stueland and CFO Kevin Feeley in September.

What To Watch

Investors will monitor the company’s ability to execute its raised adjusted net income guidance for fiscal 2026. With the stock trading well below its 52-week high, the market will likely focus on whether the Q4 revenue miss signals a broader slowdown in genomic testing volumes or a temporary margin compression issue.