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GeneDx Holdings Corp. (WGS) Stock Analysis

SellModerate Confidence

Healthcare · Diagnostics & Research

Sell if holding. Engine safety override at $44.73: Quality below floor (3.9 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.8/10 and A.R:R 3.3:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 27%; Below-average business quality; Below long-term trend.

GeneDx provides exome and whole genome sequencing primarily for pediatric rare disease diagnosis, backed by one of the world's largest rare disease datasets (GeneDx Infinity™, 2.5M+ tests). Nearly all 2025 revenue was from diagnostic test reports reimbursed by third-party... Read more

$44.73+49.8% A.UpsideScore 5.8/10#6 of 26 Diagnostics & Research
QualityF-score6 / 9FCF yield0.29%
Stop $41.60Target $66.99(analyst − 13%)A.R:R 3.3:1
Analyst target$77.00+72.1%9 analysts
$66.99our TP
$44.73price
$77.00mean
$100

Sell if holding. Engine safety override at $44.73: Quality below floor (3.9 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.8/10 and A.R:R 3.3:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 27%; Below-average business quality; Below long-term trend. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Score 5.8/10, moderate confidence.

Passes 7/10 gates (positive momentum, favorable risk/reward ratio, no SEC red flags, news events none recent, earnings proximity 69d clear, semi cycle peak clear, materials cycle peak clear). Fails on clean insider activity and death cross (50MA < 200MA). Suitability: aggressive.

Recent Developments — GeneDx Holdings Corp.

Generated 2026-05-21T00:46:27Z.

Thesis

Rewards
No bull case signals
Risks
Concentration risk — Supplier: limited number of suppliers
Quality below floor (3.9 < 4.0)

Key Metrics

P/E (TTM)
P/E (Fwd)34.2
Mkt Cap$1.3B
EV/EBITDA-159.0
Profit Mgn-17.6%
ROE-30.4%
Rev Growth17.4%
Beta2.07
DividendNone
Rating analysts13

Quality Signals

Piotroski F6/9MoatNarrow

Options Flow

P/C1.02bearish
IV81%elevated
Max Pain$75+67.7% vs spot

Concentration Risks(10-K Item 1A)

  • HIGHSupplierlimited number of suppliers
    10-K Item 1: 'We rely on a limited number of suppliers, including Illumina, Inc., Life Technologies Corporation, Twist Biosciences Corporation, Path-Tec LLC and Agilent Technologies. for certain laboratory reagents'

Material Events(8-K, last 90d)

  • 2026-03-02Item 1.02MEDIUM
    GeneDx terminated its existing credit agreement with Perceptive Credit Holdings IV, LP on February 27, 2026 upon entering a new $100M term loan with Blackstone. Perceptive facility repaid in full.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

3 floor-breakers

Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static

Quality Rank
0.4
Growth Rank
5.8
Value Rank
6.9

No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static

Surprise Avg
0.0
Earnings History
3.3
Erm
5.0
Earnings Timing
5.0
Earnings concerns: 2B/2M

Unprofitable operations — net margin -17.6%. Quality floor flags this regardless of sector context.static

Roe
0.0
Roa
0.0
Operating Margin
0.0
Net Margin
0.0
Rule Of 40
3.0
Fcf Quality
3.2
Moat
6.5
Piotroski F
6.7
Gross Margin
9.9
Current Ratio
9.9
FCF-positive despite GAAP loss (FCF margin 1%, FCF yield 0.3%)Rule of 40: 18 (fail)
GatesINSIDER 5.25%=EXTREMEDeath cross (50MA < 200MA)Momentum 5.0<5.5 (soft — BUY_NOW allowed but watch)Momentum 5.0>=4.5A.R:R 3.3 ≥ 1.5No SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 69d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Aggressive
RSI
33 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $32.21Resistance $69.12

Price Targets

$42
$67
A.Upside+49.8%
A.R:R3.3:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Quality below floor (3.9 < 4.0)
! Insider activity: 5.25%=extreme
! Death cross — 50-day MA below 200-day MA

Earnings

B
B
M
M
2/4 beats
Next Earnings2026-07-28 (69d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is WGS stock a buy right now?

Sell if holding. Engine safety override at $44.73: Quality below floor (3.9 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.8/10 and A.R:R 3.3:1 is above the 1.5:1 BUY gate. Specifically: High short interest: 27%; Below-average business quality; Below long-term trend. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Prior stop was $41.60. Score 5.8/10, moderate confidence.

What is the WGS stock price target?

Take-profit target: $66.99 (+49.8% upside). Prior stop was $41.60. Stop-loss: $41.60.

What are the risks of investing in WGS?

Concentration risk — Supplier: limited number of suppliers; Quality below floor (3.9 < 4.0).

Is WGS overvalued or undervalued?

GeneDx Holdings Corp. trades at a P/E of N/A (forward 34.2). TrendMatrix value score: 7.8/10. Verdict: Sell.

What do analysts say about WGS?

13 analysts cover WGS with a consensus score of 4.2/5. Average price target: $77.

What does GeneDx Holdings Corp. do?GeneDx provides exome and whole genome sequencing primarily for pediatric rare disease diagnosis, backed by one of the...

GeneDx provides exome and whole genome sequencing primarily for pediatric rare disease diagnosis, backed by one of the world's largest rare disease datasets (GeneDx Infinity™, 2.5M+ tests). Nearly all 2025 revenue was from diagnostic test reports reimbursed by third-party payors; ~1.5% of revenues are from outside the U.S. The proprietary dataset creates a diagnostic flywheel—each new test improves interpretation accuracy.

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