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

GeneDx Holdings (WGS) shares fell 16.57% to $54.83 on Tuesday. The primary driver was a Q4 revenue outlook that fell short of Street forecasts, despite the company meeting its fiscal year revenue guidance and beating on adjusted earnings per share.

What Happened

GeneDx reported Q3 2026 results with adjusted EPS of $0.28, significantly exceeding the consensus estimate of $0.07. Revenue came in at $123.1 million, slightly above the $123 million estimate and up 5% year over year. However, the company trimmed its volume growth outlook and issued a Q4 revenue forecast that missed consensus expectations. This tempered outlook prompted immediate analyst reactions. Piper Sandler lowered its price target from $95 to $65. BTIG maintained a Buy rating but cut its price target from $90 to $85. The company reaffirmed its fiscal 2026 revenue guidance of $475 million to $490 million on November 9.

What The Data Shows

The stock has experienced a sharp decline, moving down 20.6% over the last eight sessions from $69.06 to $54.83. This drop brings the share price close to the lower end of its 52-week range, which spans $32.21 to $170.87. The company remains unprofitable with a trailing twelve-month EPS of -$3.64 and a net margin of -23.4%, despite revenue growth of 25.4% over the same period. The stock carries a high beta of 1.99, indicating elevated volatility relative to the broader market. Insider activity shows four sales totaling $1.8 million in the last 90 days, with no purchases. Recent Form 4 filings indicate that CFO Kevin Feeley and CEO Katherine Stueland both sold shares on September 16, 2026.

What To Watch

Investors will monitor how the market digests the tempered Q4 volume outlook against the reaffirmed full-year revenue guidance. The stock's recent volatility and high beta suggest continued sensitivity to future guidance updates and analyst price target adjustments.